Immunex Explores Additional Manufacturers for Enbrel Supply
By Angela Zimm and Karen Fessler
Bellevue, Washington Aug. 14 (Bloomberg) -- Immunex Corp. said it might seek out additional manufacturers for Enbrel, as it faces a potential shortfall in supply of the popular rheumatoid arthritis drug as early as next year.
Immunex warned in a recent filing with the Securities and Exchange Commission that it could run out of Enbrel within the next year if demand continues to increase. Immunex has said that the current supply of Enbrel could support $800 million to $900 million in sales a year, less than the $1.1 billion that some analysts forecast for next year.
Enbrel is on track to reach $650 million in sales this year from $367 million last year. Growing demand for the drug has prompted Immunex and its majority-owner American Home Products Corp. to build a plant in Rhode Island to double current capacity. That plant won't open until 2002.
``We're exploring absolutely every option to get as much capacity as quickly as possible,'' Immunex Chief Operating officer Peggy Phillips said at the company's analyst meeting in Bellevue, Washington.
Boehringer Ingelheim GmbH is the sole manufacturer of Enbrel for Immunex, producing $800 million worth of the drug. The German drugmaker could increase capacity to as much as $900 million annually, Immunex said.
American Home Products could supply Enbrel from a plant under construction in Ireland. The move would require U.S. Food and Drug Administration approval.
Closely Watched Move
Investors and analysts are closely monitoring the steps Immunex is taking to meet growing demand.
``I think it's something to watch for,'' said Elise Wang, an analyst with PaineWebber. ``It's a matter of execution.''
In June, the FDA approved Enbrel for use in patients with early stages of rheumatoid arthritis, potentially doubling the number eligible to take the drug. During the second quarter, Enbrel sales increased 18 percent from the first quarter, surpassing the company's own forecast of 10 to 15 percent. The second-quarter results didn't include sales to the additional early-stage rheumatoid arthritis patients, Phillips said.
The company today mapped out a long list of potential uses for Enbrel, including psoriasis, psoriatic arthritis, congestive heart failure, hepatitis C, Crohn's disease and diabetes. The company is in various stages of human and animal studies for these potential uses.
With additional approval of Enbrel for use in a number of these conditions, annual sales could exceed $6 billion, rivaling the world's top-selling prescription drug Prilosec, the company said. Prilosec, made by AstraZeneca Group Plc, had sales of $5.9 billion last year. |
