Amgen is acquiring two late-stage oncology compounds through its $1.3 bil. buyout of Tularik.

Of Tularik's six projects in the clinic, two are small molecule tubulin binding agents: T67 is in Phase III studies for hepatocellular carcinoma, and T607, an analog of T67, is in Phase II for esophageal and gastric cancers.

The deal would broaden Amgen's oncology portfolio to small molecules; the company currently markets Aranesp for chemotherapy-induced anemia and Neupogen and Neulasta for the prevention of infection in patients undergoing certain types of chemotherapy.

In the clinic, Amgen's epidermal growth factor receptor inhibitor panitumumab is in Phase III for colorectal cancer, and the company plans to file a palifermin BLA this year for oral mucositis associated with chemotherapy.

Amgen purchased 21.3% of Tularik as part of a five-year oncology collaboration signed in May 2003. Under the 2003 deal, Amgen committed to pay up to $125 mil. in share purchases and R&D funding.

Under the terms of the new deal, Amgen will purchase the remaining 80% stake in the South San Francisco-based company in a stock-swap transaction. Amgen is valuing Tularik's shares at $25, a 47% premium over the March 26 closing price of $17.

At $1.3 bil., the Tularik deal is roughly one-tenth the size of Amgen's last acquisition - the $10 bil. Immunex purchase in July 2002. Unlike Immunex, Tularik has no marketed products and no pipeline projects with the immediate-term potential of Immunex' Enbrel .

Tularik specializes in drug discovery related to cell signaling and the control of gene expression.

The earlier-stage pipeline includes T487 for psoriasis (Phase II) and rheumatoid arthritis (Phase I completed); T131 for type 2 diabetes (Phase II); T71 for obesity (Phase I) and a Factor Xa inhibitor in partnership with Lilly (Phase II).

Tularik will become a wholly owned subsidiary of Amgen, with CEO David Goeddel becoming San Francisco site head. Amgen expects R&D expenditures to increase by $100 mil. per year over the next several years as a result of the acquisition.

- Kate Rawson

Amgen's $1.3 Bil. Acquisition Of Tularik Would Yield Two Late-Stage Oncologics

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