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September 29, 2006

Amgen Wins Approval for Colorectal Cancer Drug

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By Val Brickates Kennedy, MarketWatch
Last Update: 10:52 AM ET Sep 28, 2006

BOSTON (MarketWatch)—In a move that was widely anticipated, U.S. regulators have approved Amgen’s new colorectal cancer drug Vectibix, a move that is sure to give ImClone’s rival drug Erbitux a run for its money.

Late Wednesday, Amgen said the Food and Drug Administration has granted approval for Vectibix, also known as panitumumab, for the treatment of colorectal cancer in patients who have not responded well to prior chemotherapy. The FDA was scheduled to make a decision on the drug by the end of Thursday.

Once on the market, Vectibix’s chief rival will be ImClone’s Erbitux. Analysts Thursday noted that while Erbitux has the benefit of being first to market, Vectibix is administered less frequently. Because of this, Amgen will be able to sell the drug about 20% cheaper than Erbitux.

Both Vectibix and Erbitux are antibody-based therapies that are administered intravenously. Erbitux is administered weekly, while Vectibix is administered every two weeks.

According to Prudential analysts, Vectibix should have 2006 sales of $104.4 million and $603.8 million by 2010.

Analysts at Merrill Lynch see Vectibix eventually grabbing 60% of Erbitux’s market. They lowered their 2007 sales estimate for Erbitux to $689 million from $787 million, their 2008 figure to $632 million from $804 million, and their 2009 estimate to $629 million from $800 million. Merrill Lynch currently has a sell rating on the stock.

Erbitux, ImClone’s only marketed product, has been at the center of two long-standing patent disputes.

Read the full article – Amgen Wins Approval for Colorectal Cancer Drug