Amgen, Inc. (AMGN), Hospira, Inc. (HSP): How Valuable Is a Cheaper Treatment for Arthritis?

Enbrel from Amgen, Inc. (NASDAQ:AMGN) is a tumor necrosis factor (TNF) blocker, mostly indicated for treatment of rheumatoid arthritis, juvenile idiopathic arthritis (JIA) in patients aged 2 years or older, psoriatic arthritis, ankylosing spondylitis and plaque psoriasis. Amgen’s Enbrel is a biologic preparation injected subcutaneously. Enbrel posted global sales of $4.23 billion in 2012. Amgen, the world’s largest biotechnology company, has been trying various measures to improve Enbrel’s sales, including developing its sales team and direct advertising. According to Zack’s Research, Enbrel will see a year on year growth rate of about 4.1% between 2012 and 2015.

Conclusion

Inflectra, if approved and sold globally, could have a major impact for patients and investors alike. Investors will like that the drug is not underpriced, while patients will appreciate that it is still cheap compared to Remicade. Although still untested in the market, physicians and patients should be happy with its standards of safety and efficacy. If Hospira, Inc. (NYSE:HSP) crosses developmental and regulatory hurdles, this looks like a drug with major upside.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

The article How Valuable Is a Cheaper Treatment for Arthritis? originally appeared on Fool.com.

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