Questions regarding the future of biotech giant, Amgen, have begun to swirl, especially in light of its recent announcement that it will cut 12-14% of its workforce. Various articles are addressing general concerns over what might be expected to happen within the next few months, sources in including CNBC.com, AHC Media LLC, and the International Herald Tribune. The FDA’s Cardiovascular and Renal Drugs Advisory Committee has scheduled a meeting for September 11, 2007 where anemia treatments for kidney disease will be assessed. With the hearing looming, investors are split as to the question of whether or not they should buy or sell. While some have decided to get out while they can, others are willing to look past the company’s current difficulties and offer continued support, while still others are looking to base their decision on the committee’s findings next month.

Further, questions regarding federal restrictions on the company’s anemia blockbusters Aranesp and Epogen are still circulating. How will these restrictions continue to affect sales? How will they affect the patients? Erythropoiesis-stimulating agents (ESAs, such as Aranesp and Epogen) are created as alternatives to blood transfusions and representatives for Amgen, as well as some doctors, are concerned that the restrictions on ESA use will result in an increased need for blood transfusions among patients. Another concern for Amgen is whether private insurers follow CMS’s lead (the Centers for Medicare & Medicaid Services), and put the trigger point for coverage at the hemoglobin level of 10g/dL? Blue Shield has already revised its coverage guidelines according to CMS’s decisions and even though Amgen contends that private investors won’t follow suit, the possibility is definitely still there.

In addition to concerns regarding federal restrictions and resulting insurance policy changes, Amgen has spent over $9 million since the beginning of the year lobbying Washington in the hopes that politicians will reverse the policies.

Click the following links to access the full articles.

CNBC.com: “Amgen’s Full-Court Press”

AHC Media, LLC: “Amgen’s Moves Gain Praise as Firm Faces ‘Uncertainties’”

International Herald Tribune: “What next for Amgen?”

Amgen Seeks to Ease Investor Concerns as Staff Cuts Loom”

“Amgen: Anemia Franchise Faces Challenges Despite Reassurances”