Amgen, DaVita Ink Epogen Deal Through 2018

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THOUSAND OAKS, Calif.—DaVita signed on Nov. 15 a supply agreement with Amgen under which Epogen will account for at least 90 percent of the dialysis provider’s anemia drug requirements through 2018, according to a Nov. 18 regulatory filing from Amgen.

The agreement starts Jan. 1, 2012 and ends on Dec. 31, 2018. The new deal replaces a previous agreement between DaVita and Amgen that was set to expire on Dec. 31.

The new deal provides DaVita with discount pricing and rebates for Epogen, according to the regulatory filing. Future Epogen pricing levels set by Amgen and data submitted by DaVita will affect some of the rebates.

The deal comes at a time when the new bundled payment system for dialysis, clinical concerns around anemia drugs and possible future anemia-drug competition from Affymax and generic drugmakers could all have an affect on Amgen’s Epogen sales, which have been around $2.5 billion each year.

The agreement allows Amgen to secure Epogen use within a provider that accounts for around one-third of the dialysis industry. As of Sept. 30, 2011, DaVita operated or provided administrative services at 1,777 dialysis facilities, serving approximately 138,000 patients.

Another third of dialysis is controlled by Fresenius Medical Care, which Amgen signed a five-year Epogen deal with back in 2006. That agreement came at a time when Roche was poised to enter the anemia market with a drug called Mircera. The deal between Fresenius and Amgen is set to expire on Dec. 31.

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