Amgen to Review Business with Analysts

Amgen (AMGN Quote) executives are expected to open up about their potential blockbuster bone-drug denosumab, or Dmab, and the company's pipeline at a business-review meeting on Friday.

As Amgen's anemia drug franchise has nearly halved on safety and reimbursement issues, Dmab, its late-stage osteoporosis drug, has become the focus for investors. Amgen presented promising late-stage data in the third quarter and said on its recent earnings conference call that it is close to filing an application for U.S. approval for the drug.

Street expectations for Dmab's market range from $500 million to more than $2 billion, according to Cowen and Co.

"We believe there is a divergence of opinion within the investor community on several key aspects of the osteoporosis market and believe Amgen will seek to create more of a consensus on key issues such as physicians' perception of the drug's profile, the size of the addressable market, likely reimbursement methodologies, and the rate of potential adoption," Cowne analysts write.

Key among questions will be what does Amgen see as Dmab's potential, and how is the company planning on marketing the drug.

Respondents to a buy-side survey conducted by Deutsche Bank indicated that the greatest worries about Dmab are in regard to reimbursement issues, Amgen's ability to compete in a general practice market, marketing costs and safety.

If approved, Dmab -- administered by a twice-a-year injection -- will compete with currently marketed osteoporosis treatments, which include generic versions of Merck's (MRK Quote) Fosamax pill and a once-yearly intravenous drug from Novartis (NVS Quote), known as Reclast.