Amgen Inc. said that it received a subpoena from the New York attorney general seeking documents related to sales and marketing activities for its drugs.
The Thousand Oaks-based based biotech, which said it received the order on May 10, intends to fully cooperate with New York authorities, according to a lengthy regulatory filing released late Tuesday which covered several issues facing the company.
Amgen also said that the U.S. Senate Finance Committee had sent a letter to the company on May 16 requesting a briefing to discuss issues and concerns reported in the media related to the marketing and safety of red blood cell-boosting drugs, isuch as Amgen’s Aranesp and Epogen.
These latest investigations only add to Amgen’s woes. A U.S. Food and Drug Administration advisory panel earlier this month recommended that uses of its top-selling anti-anemia drug Aranesp should be limited due to health risks. Aranesp, and its sister drug, Epogen, accounted for half of Amgen’s $14 billion in sales last year.
Amgen shares have fallen 29 percent since mid-January, and the company is facing nearly a dozen shareholder class action suits. The company said in the filing that it had been served on May 14 with a shareholder demand that Amgen’s board form a special litigation committee to investigate potential breaches in fiduciary duties by current and former officers and directors.
Additionally, the company on Wednesday announced a $4 billion senior note offering that will fund a $3 billion stock buyback. Any other proceeds will be used for general corporate purposes, it said. The company reported $1 billion in cash on hand and $3.7 billion in marketable securities in its most recent quarterly filing.
Moody’s Investors Service in response cut its outlook on the company to “negative” from “stable,” calling the company’s financial policies “aggressive” in light of current events. But Moody’s still affirmed its “A2” and “Prime-1” ratings on Amgen’s debt. Standard & Poor’s Rating Service put the company ratings on its credit watch with “negative” implications.
Earlier in the week, Swiss drug-maker Roche announced that the FDA had issued an approvable letter for Mircera for the treatment of anemia associated with chronic renal failure. Mircera still has a few more regulatory hoops to jump before it can hit the market as a competitor to Aranesp and Epogen.
Amgen shares closed up 78 cents, or 1.5 percent, to $54.74 Wednesday on the Nasdaq.
