The Amgen Chronicles
I have been in the business long enough to remember when Amgen was the largest and most successful biotechnology company in the world. During most of the 90s and early 2000s, Amgen was second to none. But, a lack of innovation, questionable marketing practices and an uncreative executive management team forced the once invincible biotech Giant to recently stumble and relinquish its world class status
For those of you who may not be familiar with Amgen, it was founded in 1980 by a team of scientists led by George B. Rathmann. The company’s original name was Applied Molecular Genetics which was officially changed in 1983 to Amgen. Its first product, Epogen (EPO; epoetin-alfa) an erythropoiesis-stimulating hormone was approved in 1989 when Gordon Binder was CEO.
EPO quickly became the company’s flagship blockbuster product and was largely responsible for Amgen’s early success. The company’s second blockbuster product Neupogen (Filgrastim) a recombinant-methionyl human granulocyte colony factor (G-CSF)—also under Binder’s leadership—which stimulates neutrophil (white blood cell) production was approved in 1998. In the early 2000s the company—now under the tutelage of its third CEO, Kevin Shearer—introduced a longer acting, second generation EPO product called Aranesp (darbepoetin-alfa) and Neulasta (pegfilgrastim), a second generation, longer-acting PEGylated version of recombinant G-CSF.
The largesse from the EPO and Filgrastim franchises allowed Amgen to rapidly expand in the 2000s and to heavily invest substantial resources into new drug development (both small molecule and biotechnology). Unfortunately, most of these investments did not pan out; with the possible exception of XGEVA (denosumab) and Prolia (denosumab) a monoclonal antibody (MAb) treatment that recently received approval for the treatment of skeletal-related events including pathological faction in patients with bone metastases from solid tumors and postmenopausal osteoporosis respectively.
In the 2000s, Amgen’s went on something of a “buying spree” during Mr Shearer’s 11 year tenure at the company. During this time Amgen acquired eight companies including three high profiles and well known ones; Immunex (2002) a MAb development company; Tularik (2004) a small molecule discovery company and Abgenix (2006) another MAb development entity. The Immunex acquisition, clearly the most profitable one, gave Amgen access to Enbrel (etanercept) a tumor necrosis factor α MAb indicated for the treatment of various forms of arthritis. Enbrel is currently one of the world’s top selling biotechnology products.
Despite its lack of R&D productivity, Amgen was recognized until recently as the world’s largest and most profitable biotechnology company in the world. However, its lack of R& D productivity coupled with a recent, highly publicized regulatory and criminal inquiry into inappropriate marketing associated with its EPO franchise has seriously tarnished the company’s once impeccable reputation. Interestingly, it appears that Amgen is finally attempting to reinvent itself.
Last week, the company announced that its CEO, Kevin Shearer and Dr. Roger M. Perlmutter, head of R&D will retire early next year. Mr. Shearer will be succeeded by Robert Bradway, a former Wall Street executive who is Amgen’s current chief operating officer. Dr. Perlmutter will be replaced by Sean Harper, MD, the company’s chief medical officer. And, last month, Amgen announced that it plans on buying back up to $5 billion shares of its publicly-held stock in an attempt to return profit to shareholders. Finally, today, the company announced that it entered into a deal with Watson Pharmaceuticals, a leading generics company, to develop biosimilar versions of some of its competitor’s blockbuster cancer-fighting biotechnology drugs. The press release made it clear that the deal did not include developing biosimilar versions of any of Amgen’s currently marketed biotechnology products. Nevertheless, today’s announcement strongly suggests that Amgen is willing to use anything at its disposal (in this case its substantial expertise in biomanufacturing rather than new drug development) to generate additional revenue streams for the company.
The recent organizational changes and strategic decisions made by Amgen’s board of directors and management team tends to validate the need for change at the company so that it can remain profitable and possibly restore its reputation as a global biotechnology leader. That said, like most other things in life, only time can tell!
Until next time...
Good Luck and Good Job Hunting!!!!!!!
I just returned from the American Association of Pharmaceutical Scientists (AAPS) meeting in Washington DC where I gave three talks about biocareer development strategies. One of the talks, "Emerging Job Opportunities in the Life Sciences Industry" was reported on (see below) by a writer from Fierce Pharma. While I don't usually "too my own horn." about my achievements, I thought a Number 2 ranking in the publications daily top 10 list was certainly worth a mention.
Last week
Bristol-Myers Squibb (BMS)
I previously posted
For the past few years, I have been
A positive workplace environment can make or break a company. Companies with low employee morale often suffer from cultures of blame—pointing a finger at a team member (other than you) when things go awry —and not giving credit to deserving employees when credit may be due. .jpg)
Despite what you may have been told, managing a career and finding new job opportunities is all about networking. Yes, I know that scientists and many other bioprofessionals loathe networking, but that is the way the game is played and if you want to win you have to play by the rules (written or otherwise).
During the course of my long and somewhat varied career, I have had the opportunity to work at a variety of different companies and organizations. Admittedly, while I am generally a “half-empty” kind of guy, the places where I enjoyed working the most were the ones where people treated one another with respect and management made a concerted and obvious effort to create a positive workplace environment. It didn’t matter whether I was a manager or a contract worker; I enjoyed going to work every day and I worked hard for the company. 
Some of you may have noticed that a new tab entitled “BioCareers” has been added to the BioJobBlog navigation bar.
The past couple of weeks have been awful for employees at
The Pharmalot blog authored by the intrepid Ed Silverman
Over the past year or so, more graduate students and postdoctoral fellows have been asking me about management consulting careers in the life sciences. I spent several years working as an independent management consultant and while it was a great experience the revenue stream was unreliable at best and the ability to work was highly contingent upon the economy. However, I can assure that my experiences as an independent management consultant were marketing different than those of consultants who work at the consulting firms like McKinsey or the Boston Consulting Group. For those of you interested in life style of a high-powered management consultant I highly recommend you visit their websites for more info.
By now, I think that most BioJobBlog readers understand that the job market for life scientists is lousy and that it isn’t likely to improve anytime soon. I know that many of you have spent close to 10 years training for a shot at an R&D job but the reality is that everybody needs to work to put food on the table—whether or not you find a job in your chosen profession. To that end, now may be a good time for those of you who are finding it difficult to land a job to consider one more year of training to get a certificate in a field that keeps you in science but not in R&D.
Roche announced Tuesday that it will replace Arthur Levinson, PhD, Genentech’s current CEO and American biotechnology pioneer, with Pacal Soriot, DVM, MBA who currently leads Roche’s worldwide commercial operations. Dr. Levinson will become Chairman of Genentech’s newly configured board of directors but no longer have control over day-to-day operations at the company. Mr. Soriot will become CEO of Genentech and head all of Roche’s pharmaceutical activities in the US. Some of the other changes that will occur at the company include: Susan Desmond-Hellmann, Genentech’s president of product development, will move into an advisory role after the middle of this year. Genentech CFO David Ebersman is leaving the company and Ian Clark, who heads commercial operations for Genentech, will be chief marketing officer of Roche’s pharma division.
While I have never been layed off, I understand how awful and painful it must be. After all, unlike people who were fired for cause or otherwise, most people who are layed off are performing well but they simply became too expensive or expendable to remain with a company facing financial exigency.
I had many discussions with undergraduate students at the ABRCMS in Orlando last week who were interested in pursuing PhD degrees in the biomedical sciences. I felt that I had an ethical and moral responsibility as a former academic and career development professional to tell them that the job market for PhDs is not good and that it is likely to get worse over the next few years. These discussions prompted me to revisit the role and contributions of tenure to the lack of academic jobs in the US today.