Back to top

Image: Bigstock

Amgen Inks Multiple Deals, Offers Update on Repatha Lawsuit

Read MoreHide Full Article

Amgen Inc. (AMGN - Free Report) announced a new six-year sourcing and supply agreement with DaVita Inc. (DVA - Free Report) to supply Epogen and Aranesp to meet the latter’s requirements. Denver, CO-based DaVita provides kidney dialysis services to patients suffering from chronic kidney failure or end-stage renal disease (ESRD). While Epogen is used to treat anemia in kidney dialysis patients, Aranesp is indicated for anemia in the renal and oncology settings. The new agreement will replace the existing deal inked by the companies in Nov 2011, which would otherwise have expired on Dec 31, 2018.

In a separate press release, Amgen announced that it has entered into a research and license collaboration with Immatics Biotechnologies GmbH to develop novel bispecific cancer immunotherapies. The deal brings together Immatics’ unique target and TCR discovery capabilities, and Amgen’s validated BiTE technology to create oncology drugs. For the deal, Amgen will make an upfront payment of $30 million to Immatics. The latter will also be eligible to receive development, regulatory and commercial milestone payments, and royalties on sales of over $500 million.

Amgen’s shares declined 10% in 2016. However, this compares favorably with the 27.1% drop registered by the Zacks classified Biomed/Genetics industry during this period. In 2017 so far, Amgen’s shares have risen 8.6%, compared with the 4.4% gain for the industry.

This is mainly due to the positive news announced by the company earlier this week. On Jan 5, a Delaware district court upheld Amgen’s patents for PCSK9 inhibitor, Repatha, and granted the company permanent injunction against infringement of two patents for the product by Sanofi (SNY - Free Report) and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . The decision bans Sanofi and Regeneron from selling Praluent during the term of the two patents, which describe and claim monoclonal antibodies of PCSK9.

Praluent’s ban could in turn drive sales of Repatha. However, the injunction has been delayed by 30 days to allow the companies time to appeal. Regeneron and Sanofi have said that they intend to appeal to a higher court. However, on Monday, Amgen stated that the U.S. District Court of Delaware has denied Sanofi and Regeneron's motion to stay the injunction pending the appeal.

Amgen has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.  Be among the very first to see them >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

Sanofi (SNY) - free report >>

Amgen Inc. (AMGN) - free report >>

DaVita Inc. (DVA) - free report >>

Published in