Biotech Firm Amgen Announces Layoffs

Declining Sales Given as Reason for Cutbacks

Biotech colossus Amgen, based in Thousand Oaks, CA, announced plans to cut back its staff as sales of some of their top drugs tumbled. In the action, more than 2,000 people will lose their jobs. Most of the cuts will be in manufacturing and in the research and development area. At the conclusion of these cut backs, staffing levels will be what they were in 2006. The company hopes to save more than $1 billion with this move.

Sales figures for three of the company's top selling drugs, Aranesp, Epogen and Procrit, have been falling since the FDA ordered a black-box warning for these drugs. The FDA ordered the change of the labeling on these products in March of this year. The official notice, posted on the FDA's web site states:

Erythropoiesis Stimulating Agents:
Aranesp (darbepoetin alfa), Epogen (epoetin alfa), Procrit (epoetin alfa)

Audience: Oncologists, nephrologists, other healthcare professionals
[UPDATE 03/09/2007] FDA notified healthcare professionals of new safety information for erythropoiesis-stimulating agents (ESAs) Aranesp (darbepoetin alfa), Epogen (epoetin alfa), and Procrit (epoetin alfa). Four new studies in patients with cancer found a higher chance of serious and life-threatening side effects or death with the use of ESAs. These research studies were evaluating an unapproved dosing regimen, a patient population for which ESAs are not approved, or a new unapproved ESA. FDA believes these new concerns apply to all ESAs and is re-evaluating how to safely use this product class. FDA and Amgen, the manufacturer of Aranesp, Epogen and Procrit, have changed the full prescribing information for these drugs to include a new boxed warning, updated warnings, and a change to the dosage and administration sections for all ESAs.

Examples of the new labels can also be seen on the FDA web site.