How Amgen Makes Billions On Just A Few Drugs

As disagreeable as chemotherapy is, infections could make it even worse. Just like the “outdated saying” goes, in the event you can scale back most cancers sufferers’ threat of sepsis, the world will beat a path to your door. Amgen Inc. (AMGN), an American multinational biopharmaceutical firm, has completed exactly that aim and prolonged a whole lot of 1000’s of lives within the course of.

Based in 1980 as Utilized Molecular Genetics, Amgen’s present specialty is in human therapeutics. Traditionally, a few of Amgen’s most profitable medication–Neupogen, Prolia, Vectibix, amongst others–have been used to deal with low white blood cell counts, osteoporosis, and colorectal most cancers, respectively.

Amgen employs a whole lot of scientists, making it one of many largest employers in Ventura County, California. The corporate’s headquarters are positioned in Thousand Oaks, California. Whereas the corporate’s product line is remarkably small (roughly 18 merchandise), Amgen is likely one of the world’s largest impartial biotechnology corporations. The corporate has additionally made at the least 10 main company acquisitions.

High-Promoting Amgen Merchandise

In 2017, the corporate generated a income of $22.8 billion. The corporate’s top-selling medication between 2017 and 2019 have been Enbrel, Neulasta, Prolia, XGEVA, Aranesp, KYPROLIS, EPOGEN, and Sensipar/Mimpara.

Enbrel (etanercept) is one in every of Amgen’s top-selling merchandise. It’s used to fight extreme arthritis and comparable inflammatory illnesses. First synthesized within the Nineties, it was bought to an organization that Amgen later purchased (Immunex). Enbrel is patented by way of 2028. The price of Enbrel is $1,640.91 per weekly 50-milligram dose. Thus far, generic makes an attempt at replicating the drug have solely been capable of scale back that value by a few hundred {dollars}. Amgen bought $4 billion value of Enbrel within the fiscal 12 months 2021.

One other one in every of Amgen’s top-selling medication is named Neulasta. Neulasta (pegfilgrastim) is used to deal with neutropenia; it acts as a white blood cell stimulant. The price of Neulasta is $6,417.99 per dose. Amgen bought $1.7 billion value of Neulasta within the fiscal 12 months 2021.

Amgen’s second-tier choices–EPOGEN, XGEVA, and Prolia–additionally make up a big portion of the corporate’s gross sales. EPOGEN (erythropoietin) is used to deal with anemia, XGEVA (denosumab) is used for the prevention of skeletal-related occasions, and Prolia (denosumab) is used to deal with osteoporosis. The price for 10 milliliters of Epogen is round $356. The price of XGEVA is $2,717.15 per dose. The price of Prolia is $1,477.16 per therapy each six months.

Aranesp, KYPROLIS, and Sensipar/Mimpara are different merchandise that generate an enormous quantity of gross sales for Amgen. Aranesp (darbepoetin alfa) is used as a therapy for anemia, KYPROLIS (carfilzomib) is an anti-cancer drug, and Sensipar/Mimpara is used to deal with a complication that’s frequent in sufferers with kidney failure. The price for 4 milliliters of Aranesp is round $818. The price of the provision of 1 powder for injection of KYPROLIS is $433. The price for a provide of 30 tablets of Sensipar/Mimpara is $852.

Within the fiscal 12 months 2019, Amgen reported $758 million in gross sales from Aranesp; $654 million in gross sales from KYPROLIS; and $252 million in gross sales from Sensipar/Mimpara.

Small Product Line Generates Large Income

Whereas these costs are, in actual fact, exorbitant, for most individuals that can be capable of obtain these remedies, medical health insurance will cowl a portion of the price. With out an enough and complete medical health insurance plan, the worth of those remedies can be cost-prohibitive. Nevertheless, for these that may afford these medication, they are often actually life-saving (and presumably definitely worth the excessive price).

The Backside Line

Amgen and its growth staff have provided reduction to many sufferers which are struggling. By setting its assets to assuaging bodily ache, the corporate has discovered its market and generated large income. For the fiscal 12 months 2019, the corporate reported complete revenues of $23.9 billion. Nevertheless, the corporate is going through rising competitors from generic merchandise and biosimilar remedies. This was mirrored in a lower in complete revenues of 1% within the fourth quarter of 2019 (in comparison with the fourth quarter of 2018).