Amgen's Osteoporosis Drug Aims at Merck

Amgen(AMGN) is gearing up to present additional clinical data on its experimental osteoporosis treatment AMG 162 -- one of the biotech giant's most promising late-stage drug candidates.

AMG 162 was first highlighted by Amgen in March at the company's R&D investor meeting. At that time, Amgen revealed interim phase II data that showed AMG 162 to be more potent and effective in stopping bone loss than current osteoporosis drugs such as Merck's(MRK) Fosamax, which posted worldwide sales of about $2.7 billion in 2003.

Amgen will be presenting updated results from this phase II study at two upcoming medical meetings: the American Society of Bone and Mineral Research meeting, Oct. 1-5, and the annual meeting of the American College of Rheumatology, scheduled for Oct. 16-21.

Amgen is counting on experimental drugs like AMG 162 to provide the fuel for medium- and long-term earnings growth. One concern raised about Amgen for most of this year has been that the biotech giant has a relatively weak drug pipeline. In the nearer term, Amgen has been dogged by fears that changes coming to Medicare reimbursement will hurt sales of its current blockbuster franchises, most importantly the anemia-fighting drug Aranesp.

Since hitting a 52-week high at $71.54 on July 15, 2003, Amgen shares have dropped 18%, compared with a 13% increase in the S&P 500. Amgen, in other words, has been acting more like a no-growth pharmaceutical firm than a go-go biotech. Amgen closed Wednesday down 99 cents, or 1.7%, to $57.57.

AMG 162 is a monoclonal antibody that binds to and inhibits RANK Ligand, a protein responsible for activating osteoclasts, cells that break down bone. The drug is given via injection once every six months, which makes it potentially more convenient and desirable than current osteoporosis pills, which must be taken daily or weekly.