Amgen to Make Significant Investment in Manufacturing, R&D and Commercial Operations Expansion
THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Jan. 24, 2006--Amgen
(Nasdaq: AMGN), the world's largest biotechnology company, today
announced that it anticipates significant investment in additional
manufacturing and R&D operations in the United States and Europe and
expansion of its commercial operations into new markets.
In Cork, Ireland, Amgen intends to invest more than $1 billion in
new process development, bulk manufacturing and fill and finish
facilities that will give the company capacity closer to the patients
it serves in Europe. Amgen currently is adding a manufacturing plant
in Puerto Rico to produce EPOGEN(R) (Epoetin alfa) and Aranesp(R)
(darbepoetin alfa). In 2005, Amgen received licensure of a NEUPOGEN(R)
(Filgrastim) and Neulasta(R) (pegfilgrastim) plant in Puerto Rico and
an Enbrel(R) (etanercept) plant in Rhode Island, and announced plans
to acquire Abgenix, Inc., a leading biopharmaceutical company with a
large manufacturing plant in Fremont, California.
Amgen also announced today it intends to expand its existing
research and development operations in Cambridge, Mass., San
Francisco, Seattle, and Cambridge, U.K., and build a new development
center in Uxbridge, U.K. In addition, Amgen has moved its European
headquarters from Lucerne to Zug, Switzerland, and formed a new
entity, Amgen International, also located in Zug, that is expected to
enhance access to Amgen's vital medicines for patients in emerging
markets in Central and Southeast Asia, Africa and Latin America.
Ireland Facility is Part of Overall Manufacturing Expansion
By 2010, Amgen expects to employ more than 1,100 people at its new
Irish facility, which will produce products for the growing number of
patients in Europe and other parts of the world who benefit from
Amgen's vital medicines.
"Amgen is pleased to establish a site in Ireland as part of our
ongoing global development and manufacturing expansion," said Fabrizio
Bonanni, senior vice president, Manufacturing. "As demand for our
products grows in Europe, Amgen requires capacity closer to this
"The company considered several attractive sites in other
countries, but chose Ireland due to its thriving biotechnology
community, infrastructure to support biologics manufacturing and
attractive business climate," said Bonanni. "Our new facilities in
Cork will enhance our ability to deliver on Amgen's robust pipeline."
Since Amgen's founding in 1980, the company has been a pioneer in
biologics manufacturing, developing some of the first and most
successful processes for large-scale protein production. Over the last
five years, Amgen has invested more than $3 billion to enhance its
manufacturing capabilities in the United States and has added more
than 4,000 operations jobs in the U.S. since 2001.
Amgen anticipates that it will break ground on the Cork projects
later this year. It expects to begin operating in Cork in 2009.
Expansion of Development Activities in U.S. and Europe Will Allow
Amgen to Bring Pipeline Products to Patients Faster
Amgen's growth in research and development marks a unique
transformation in the company's history. As others in the industry
consolidate and reduce workforces, Amgen is launching a major global
expansion of its R&D efforts in a number of scientific hubs throughout
the world. This global expansion is due to a remarkably robust
pipeline that is driving Amgen's growth and helping build a portfolio
that rivals any in the industry.
While most growth will take place in the organization's existing
regional R&D sites -- including San Francisco, Seattle and Cambridge,
Mass., in the U.S. and Cambridge in the U.K. -- Amgen also will add a
development site in Uxbridge, U.K. In addition, Amgen anticipates
future expansion in Japan, Australia, Canada and other locations.
"This significant, long-term investment in our global R&D
infrastructure underscores the commitment of Amgen to be the world's
best human therapeutics company," said Roger M. Perlmutter, executive
vice president, Research and Development. "In particular, our growth
in clinical development at Amgen San Francisco and Uxbridge, U.K. will
provide the capability to deliver on the promise of our extraordinary
Recognizing the need for Amgen to expand its global reach, the
company constantly evaluates new opportunities for expansion
Amgen to Explore New Markets
Amgen has selected Zug, Switzerland, as the home of its
international commercial operations outside of the United States,
Canada and Japan.
The newly formed Amgen International oversees operations in
Europe, Australia and the Middle East. Amgen expects that it soon will
start up activities in Russia, Mexico and Brazil. By the end of the
decade, Amgen anticipates expansion of its commercial activities into
not yet covered countries in Eastern Europe, Central and Southeast
Asia, Africa and Latin America.
Rolf Hoffmann serves as senior vice president of Amgen's
international operations and is now based in Zug.
"Amgen's choice of Zug as the headquarters for international
commercial operations reflects the outstanding business environment
Switzerland offers to biotechnology companies," said Hoffmann.
"Switzerland is an ideal location from which to further expand Amgen's
commercial operations into new markets. This will accelerate greater
patient access to Amgen's innovative therapies."
Amgen discovers, develops and delivers innovative human
therapeutics. A biotechnology pioneer since 1980, Amgen was one of the
first companies to realize the new science's promise by bringing safe
and effective medicines from lab, to manufacturing plant, to patient.
Amgen therapeutics have changed the practice of medicine, helping
millions of people around the world in the fight against cancer,
kidney disease, rheumatoid arthritis, and other serious illnesses.
With a broad and deep pipeline of potential new medicines, Amgen
remains committed to advancing science to dramatically improve
people's lives. To learn more about our pioneering science and our
vital medicines, visit www.Amgen.com.
This news release contains forward-looking statements that involve
significant risks and uncertainties, including those discussed below
and others that can be found in our Form 10-K for the year ended
December 31, 2004, and in our periodic reports on Form 10-Q and Form
8-K. Amgen is providing this information as of the date of this news
release and does not undertake any obligation to update any
forward-looking statements contained in this document as a result of
new information, future events or otherwise.
No forward-looking statement can be guaranteed and actual results
may differ materially from those we project. The company's results may
be affected by our ability to successfully market both new and
existing products domestically and internationally, sales growth of
recently launched products, difficulties or delays in manufacturing
our products, and regulatory developments (domestic or foreign)
involving current and future products and manufacturing facilities. In
addition, sales of our products are affected by reimbursement policies
imposed by first party payors, including governments, private
insurance plans and managed care providers, and may be affected by
domestic and international trends toward managed care and healthcare
cost containment as well as possible U.S. legislation affecting
pharmaceutical pricing and reimbursement. Government regulations and
reimbursement policies may affect the development, usage and pricing
of our products. Furthermore, our research, testing, pricing,
marketing and other operations are subject to extensive regulation by
domestic and foreign government regulatory authorities. We, or others,
could identify side effects or manufacturing problems with our
products after they are on the market. In addition, we compete with
other companies with respect to some of our marketed products as well
as for the discovery and development of new products. Discovery or
identification of new product candidates cannot be guaranteed and
movement from concept to product is uncertain; consequently, there can
be no guarantee that any particular product candidate will be
successful and become a commercial product. In addition, while we
routinely obtain patents for our products and technology, the
protection offered by our patents and patent applications may be
challenged, invalidated or circumvented by our competitors. Further,
some raw materials, medical devices, and component parts for our
product are supplied by sole third party suppliers.
EDITOR'S NOTE: An electronic version of this news release may be
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CONTACT: Amgen, Thousand Oaks
Mary Klem, 805-447-4587 (media)
Arvind Sood, 805-447-1060 (investors)