Amgen Merger Spurs Immunex to Sell Leukine

Immunex Corp. said Friday that Schering agreed to pay $380 million for Leukine, a drug used to treat the side effects of chemotherapy.

The deal clears a regulatory hurdle in the way of Amgen Inc.’s pending acquisition of Immunex. Amgen has two drugs that are similar to Leukine, and one of them, Neupogen, dominates the market.

In a research note, Prudential Securities analyst John Sonnier said the deal was a good one. But investors drove Amgen’s shares down to a 52-week low on a day when the market also fell.

Fariba Ghodsian, an analyst with Roth Capital Partners in Los Angeles, called the price tag for Leukine “a little light.” She said she expected an amount closer to $500 million, or about five times Leukine’s 2001 sales of $108 million.

However, the strength of Amgen’s products may have depressed the price for Leukine, Ghodsian said.

Neupogen had sales of $1.3 billion in 2001. Neulasta, a new, longer-acting form of Neupogen, could have sales of $145 million this year, according to J.P. Morgan Securities.

Immunex said that, in addition to buying the drug, Schering will lease the Immunex facilities in Seattle and Bothell, Wash., where the drug is made, and hire an unspecified number of Immunex employees. Schering agreed to pay Immunex an additional $90 million when it files a marketing application for use of the drug in treating Crohn’s disease.

The sale of Leukine to Schering, Germany’s second-largest drug company, must be cleared by the Federal Trade Commission. It also is contingent on completion of Amgen’s $16-billion acquisition of Immunex. Amgen has said it expects to close the deal by the end of June.

On Nasdaq, Immunex shares closed at $25.21, down 50 cents, and Amgen fell $1.52 to $48.80.