Amgen's Shares Down On Product News

The share price of US firm Amgen went into decline after it announcedthat it anticipates a modest reduction in the year-on-year growth rate of sales of Epogen (epoetin alfa) for the current year, due to action taken by dialysis providers in response to the previously-announced Medicare Hematocrit Measurement Audit reimbursement guidelines, scheduled to take affect August 1. A modest slowdown from the the 1996 21% growth rate is expected.

The firm says that in anticipation of the new guidelines, some dialysis providers are temporarily withholding doses of Epogen from some patients whose hemocrits exceed 36% (payment of claims for hemocrits above 36% are no longer medically justified), and will administer reduced doses to some patients in the future.

Furthermore, Amgen's share price plunged further to $58.63, down $3.50, after the firm released data on its antiobesity product, leptin (Marktletter June 23). The product will enter Phase II of development, but the firm says it has accepted that leptin may not have an acceptable profile for widespread usage.