Amgen Alleges Patent Infringement

Amgen Inc., the world’s largest biotechnology company, has asked a U.S. judge to forgo a trial and rule that Transkaryotic Therapies Inc. violated Amgen’s patents on its best-selling Epogen drug.

Thousand Oaks-based Amgen filed for summary judgment, asking that the judge declare Transkaryotic’s efforts to market its own version of erythropoietin illegal. Erythropoietin, an anti-anemia drug for cancer patients, is sold by Amgen as Epogen and by Johnson & Johnson as Procrit.

Some analysts said the motion for summary judgment probably will not be allowed, which would set the stage for an April 2000 trial to determine whether Amgen’s patent position is strong enough to keep products similar to Epogen, which had $1.4 billion in 1998 sales, off the market.

“It’s part of standard legal maneuvering,” Akhtar Samad, an analyst at Oscar Gruss & Son with a “buy” rating on Transkaryotic, said of the motion for summary judgment.

Others said Amgen’s case was strong enough for the judge to accept Amgen’s motion, which requires that the facts of the case wholly support Amgen’s position.

“I think this is real. Transkaryotic is clearly infringing” Amgen patents, said Meirav Chovav, an analyst at Salomon Smith Barney, who has a “buy” rating on Amgen.

Amgen claims that Transkaryotic’s formulation of erythropoietin infringes on Amgen’s patent to make the drug, the best-selling biotechnology product. Transkaryotic says the form of the drug it is producing and testing isn’t covered by Amgen’s patents.

Amgen spokesman David Kaye said the motion reflected Amgen’s belief that its patent rights to erythropoietin remain strong.

“We’ve always been confident in our patent position,” he said.

A U.S. District judge has allowed Transkaryotic and its partner, No. 1 German drug maker Hoechst AG, to test the drug, though the court has yet to decide whether the companies may legally market the drug.

Amgen shares rose 44 cents to close at $85.88 on Nasdaq. Cambridge, Mass.-based Transkaryotic shares fell $1.13 to close at $50.13 on Nasdaq.