Amgen and Immunex Shareholders OK Merger

Amgen Inc.’s acquisition of rival Immunex Inc. was overwhelmingly approved Thursday by shareholders of both companies, as expected. The transaction needs approval by the Federal Trade Commission.

Kevin Sharer, Amgen’s chairman and chief executive, told shareholders that a top priority is increasing supplies of Enbrel, Immunex’s rheumatoid arthritis drug.

Amgen’s purchase of Immunex was driven by prospects for the drug, but recent production problems have led to a shortage. Immunex already has cut its 2002 Enbrel sales forecast 10% to $900 million

“We need to make sure the Enbrel supply is restored,” Sharer said.

Despite the vote--more than 90% of Amgen shareholders favored the merger--shareholders at the Thousand Oaks-based firm’s two-hour annual meeting criticized the deal and expressed suspicion about the board’s motives.

“We’re a successful company. Why do we have to take a risk?” asked one shareholder, as the crowd of about 1,000 applauded. In response to a shareholder question, Sharer asked directors to state whether they own Immunex stock and stand to profit from the merger. None acknowledged holding Immunex shares.

Immunex shareholders will receive a combination of Amgen stock and cash for their shares when the deal closes. Based on Amgen’s closing price Thursday, the acquisition was worth $14.7 billion. Amgen shares fell $1 to $50.35, and Immunex dipped 49 cents to $26.42, both on Nasdaq.