Amgen still strong at 25

BILL SPARKES/Acorn Newspapers LOOKING TO THE FUTURE—Amgen employee Doug Rich, right, born and raised in Thousand Oaks and now director of Amgen’s quality analytical labs (QAL), and Fred Kamal, a Newbury Park resident and QAL assistant director of chemistry, analyze data at the company’s headquarters in Thousand Oaks. Thousand Oaks-based Amgen received an unexpected 25th anniversary gift last month when the company’s stock surged beyond Wall Street expectations, giving the biotech firm’s employees even more to celebrate.

Amgen’s official anniversary was April 8, but the company continues to celebrate the milestone through traditional annual corporate events. In addition, each employee received a copy of “The Amgen Story,” a thick glossy book chronicling the firm’s history complete with photos. But perhaps the best gift was the jump in the company’s stock.

In one day, Amgen’s stock rose nearly $11 to close at more than $81. The increase came after the company posted earnings of 88 cents per share and a profit of more than $1 billion for the second quarter, 42 percent higher than the second quarter last year. Analysts said it may have been the company’s best quarter ever.

Not bad for a brash start-up that began as the idea of a venture capitalist, and then a staff of three in a tiny office off Rancho Conejo Boulevard.

Today Amgen employs nearly 7,000 people on its sprawling seven-acre headquarters in Thousand Oaks, making it Ventura County’s largest employer. A Fortune 500 company, Amgen is billed as the biggest biotech firm in the world, with more than 14,000 employees, and facilities in Washington, Colorado, Rhode Island, Kentucky, Massachusetts, Washington, D.C., and Puerto Rico, as well as subsidiaries or branches in 26 other countries. Last year, sales of Amgen products generated $10 billion.

Even more significant than those big numbers are the innovative products developed by Amgen scientists that have helped those suffering from various illnesses including cancer, chronic kidney disease, rheumatoid arthritis and anemia. Serving patients is the company’s biggest accomplishment, according to Wayne Pearl, vice president of Thousand Oaks operations.

People whose lives have been affected by Amgen products have visited the company to express appreciation for Amgen’s work. Pearl recalls one 16-year-old girl who came to say thank you. Diagnosed with lupus, the girl credited Amgen’s drug, Epogen, used for dialysis patients, with keeping her alive.

“There are 8 million patients who, prior to Amgen, had very limited choices,” Pearl said. “That’s why people come to work here. Our mission is to make a difference.”

The company’s other innovations include Neupogen, which fights infection in chemotherapy patients, and Enbrel, which helps people with arthritis and psoriasis.

“We make it clear we’re not out to cure the common cold,” Pearl said. “We focus on grievous illnesses, the nasties.”

A number of new products are being developed. The biggest and most exciting, said Pearl, is designed to address osteoporosis and bone cancer. Pearl says AMG 162 will reduce the number of hip fractures and other complications from those diseases. The product is being tested in clinical trials and is expected to launch by 2008.

“Now there are not a whole lot of options for women in dealing with osteoporosis,” Pearl said. “This is the largest clinical trial Amgen has executed to date with thousands of patients lined up around the globe.”

The future of medicine itself will change as it shifts its focus from curing disease to preventing it, according to Pearl. He believes that patients will begin to see customized medicine. Based on an individual’s genetic code, doctors will be able to predict future problems.

“We’ve got to get out of just reacting,” Pearl said. “Prevention has a lot to do with lifestyle choices. Listen to the doctor when he says to go out and exercise.”

Amgen’s location in Thousand Oaks has been a major economic engine for the city and the Conejo Valley. Besides its regular staff, Amgen employs 3,000 local contractors and temporary workers in Thousand Oaks. Pearl half jokes that he used to think Amgen’s biggest local effect was on real estate prices. The company has provided financial support to local schools, encouraging an interest in science among students.

“The community is important to Amgen. We’ve invested a lot of money in the infrastructure here and have literally pumped millions of dollars into the community,” Pearl said.

In turn, he adds that Thousand Oaks has been a great place for Amgen staff to work and live in.

“Not having to get on the highway to go to work is a huge benefit for our employees,” Pearl said.

Doug Rich, who grew up in Thousand Oaks, is one such employee.

“I enjoy living and working in this community,” said Rich, director of Quality Analytical Labs. “This is the quality of life I grew up with . . . and this is the quality of life I want for my family. I know Amgen is proud to be a part of this community also.”

Thousand Oaks Mayor Claudia Bill-de la Peña says the city is extremely fortunate to be the home of a “corporate citizen” like Amgen.

“Amgen and its employees have proven to be invaluable to the city through their lasting contributions to community service and their commitment to science education,” Bill-de la Peña said. “Amgen has provided Thousand Oaks with a stellar reputation as a biomed center. The city eagerly looks forward to another 25 years with Amgen.”

Pearl points to several factors contributing to Amgen’s longterm success. One is the values reflected by the company that attract talented employees.

Freedom in the lab is another important ideal because scientists like to know they can pursue their dreams, Pearl adds.

“You don’t join Amgen for a job. You join it for a career,” Pearl said.

Among the company’s challenges is to retain the close-knit family atmosphere it was built on while continuing to expand and develop.

“Maintaining constant growth in an industry that in some instances is a crapshoot is not always easy,” Pearl said. “It’s one thing to make your first billion. It’s tough to make that second billion.”