Amgen (United States)

THE U.S. CORPORATION Amgen, which is headquartered in California, is one of the leaders in the biotechnology field. It was founded in 1980 and took its name from “Advanced Molecular Genetics.” It has subsequently become a Fortune 500 company. Its many fields of enterprise are concerned with developing and manufacturing products derived from the new understanding of molecular biology and recombinant DNA. Two early products to treat chronic kidney disease and cancer, Epogen and Nepogen, became hugely successful and helped to indicate the degree of success that such a high-tech corporation might hope to achieve. From having just three staff members at its founding, Am-gen now has more than 20,000 employees worldwide and had revenues of $12.4 billion in 2005—of which [Page 48]$2.3 billion were reinvested in the form of research and development (R&D). Amgen defines its mission as “to serve patients” and its values as: “to be science-based; compete intensely and win; work in teams; create value for patients, staff and stockholders; trust and respect each other; ensure quality; collaborate; communicate and be accountable; and finally, be ethical.”

The company has been recognized nationally and internationally in areas such as producing solid financial performance, being one of the best places to work, being admired, and having the 2004 CEO of the Year, Kevin Sharer. However, this story has not been one of unalloyed success. Amgen has faced problems along the way often associated with the growth of companies, which were initially small and focused on technological issues, into large corporations with multiple departments and a reasonable degree of diversification. Amgen now operates in a completely different environment than it did two or three decades ago, even if it is an environment that it has, in part, helped to shape.

Having become the world's largest independent biotechnology company, Amgen contends with issues such as mergers and acquisitions, licensing and patent deals, and the need to keep profits high to sustain shareholder support while still maintaining a focus on the long-term goal of developing new products for production and marketing. In order to mobilize economies of scope and scale, Amgen has entered into a variety of R&D joint venture deals that allow more than one company to concentrate their research capabilities and specialties. It has also become involved in numerous licensing deals that enable companies with expertise in international markets to distribute and market Amgen's goods for a license fee and possible revenue-sharing.