Ebb & Flow

Amgen's blockbuster second quarter earnings were driven by its homegrown products. In contrast, Enbrel, the rheumatoid arthritis drug acquired in the merger with Immunex, continued to have manufacturing problems that are leading patients to seek treatment elsewhere. This could really hurt if another anti-TNF drug, D2E7 from Cambridge Antibody (LSE:CAT; CATG) and Abbott (ABT), is approved soon. Ineed, FDA action on the BLA could come by year end.

In reporting its earnings last week, AMGN ratcheted back '03 Enbrel sales guidance, attributing most of the shortfall to a second quarter manufacturing snafu (see "Earning Attention?"). If D2E7 is approved this year, that would precede AMGN's current goal of getting its Rhode Island manufacturing facility on line in the first quarter. ...