Amgen Stock Surges on NESP Test Results

Amgen’s drug NESP, an extended-release version of its blockbuster anemia drug Epogen, is as effective as the original, according to preliminary research data released Monday that sent the stock soaring nearly 5%.

A study of 522 patients on kidney dialysis found that those given NESP once a week, or once every two weeks, fared as well as those given Epogen once a week to three times a week. Side effects, deaths and withdrawals from the study were the same in both groups.

NESP is an important drug for Thousand Oaks-based Amgen, the world’s No. 1 biotechnology company. Amgen only has rights to market its Epogen anemia treatment for kidney dialysis in the U.S., while Johnson & Johnson sells the drug for all other uses and also holds most overseas rights.

“The data looks very consistent with an approvable drug,” said Laurence Blumberg, president of Blumberg Capital Management, which holds shares in Amgen.

Shares of Amgen rose $3.56 to close at $81.44 on Nasdaq. Johnson & Johnson shares rose $2 to close at $92 on the New York Stock Exchange. The stock has gained more than 50% in the last year.

Analysts have said that NESP sales could boost Amgen’s annual revenue by more than $1 billion as it starts competing with J&J; in marketing the drug to other types of patients with anemia, including those with AIDS and cancer.

According to the abstract summary of research published on the American Society of Nephrology Internet site, the patients were tested to see whether NESP allowed them to maintain the same levels of hemoglobin in their blood as Epogen.

The NESP results are from the third of three phases of clinical trials required for Food and Drug Administration approval.

The full research will be presented Nov. 7 to the American Society of Nephrology.

Separately Monday, shares of Berkeley-based Xoma Ltd. lost more than half their value after the biotechnology company said it halted a late-stage trial of its drug Neuprex, intended to prevent infection in patients with severe blood loss from injuries.

Xoma fell $2.66, or 54%, to close at $2.28 on Nasdaq.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Amgen’s Rise

Amgen’s stock has climbed more than 100% in the last year. The world’s biggest biotech company is poised to see bigger gains as new research shows its drug NESP is as effective as its blockbuster Epogen drug. Weekly closes and latest:

Monday: $81.44, up $3.56

Source: Bridge News