By Frances Bishopp

With an eye toward the future in the European market, Amgen Inc. and F. Hoffman-La Roche Ltd. have agreed to develop a second-generation G-CSF (granulocyte colony-stimulating factor) for the European Union (EU), expanding their 1988 AMRO agreement.

Under the agreement, Roche, of Basel, Switzerland, will grant to Amgen rights to certain intellectual property in the U.S. and other geographic markets.

Also, Roche's participation with Amgen, of Thousand Oaks, Calif., in the sale of Neupogen (brand name for G-CSF) in the EU will be extended to 2010.

Prior to this extension, Andrea Rothschild, associate manager with corporate communications at Amgen, told BioWorld Today the agreement was to phase out in the next several years. The new agreement not only extends the partnership, but changes the original profit-sharing levels as well, she said.

Because the patent expires in 2006, and given that the lead time on drug development is quite long, Rothschild said, Amgen is planning for second-generation products in the European market.

"The intention and the hope is that the partnership with Roche will give us a head start for second-generation products in Europe that might extend our franchise that we have with G-CSF past our original patent," Rothschild said.

The patent on the current G-CSF molecule expires in Europe in 2006, Rothschild said. The second-generation product will be a somewhat modified and potentially improved version of G-CSF, but at this point, Rothschild said, Amgen does not know what the second-generation drug constitutes.

Rothschild also added the second-generation version of G-CSF would not be called Neupogen.

G-CSF, one of a group of proteins called colony-stimulating factors, is a molecule responsible for the regulation and control of a population of bacteria-fighting white blood cells called neutrophils.

The extension will not affect the planned transition from Roche to Amgen of responsibility for marketing, distribution and other key functions of the AMRO agreement.

Amgen's cash on hand, as of March 31, 1997, was $1 billion. Amgen's stock (NASDAQ:AMGN) closed Tuesday at $55.875, down $0.125. *