Supply slide

Associated Press

VACAVILLE, Calif. — In a gleaming drug factory rising out of a California pasture, thousands of genetically engineered Chinese hamster cells multiply into the billions as they snake through 20 miles of pipes, tubes and giant brewers’ vats called "bioreactors."

Through a series of filters and chemical reactions, the human proteins created in these hamster ovary cells are sucked out, purified and turned into the blockbuster cancer drug Herceptin as well as two other protein-based therapies.

Combined with another factory in south San Francisco, the new plant gives Genentech Inc., the ability to brew in about a month nearly 200,000 liters worth of hamster cells spliced with human genes.

These hardy cells are the industry standard for manufacturing protein-based drugs because of their ability to multiply quickly.

And nobody brews more cells than Genentech, which controls half the world’s bioreactor capacity.

Demand for the 30 protein-based drugs now on the market far outstrips the industry’s production capacity. And with a good portion of the 99 protein-based drugs now in late-stage human trials expected to hit the market soon, the shortage will get much worse before it gets any better.

By 2005, the industry will need about four times the capacity it has now, predicts analyst David Molowa of J.P. Morgan Chase. He and other analysts aren’t optimistic that future demand will immediately be met.

Each factory costs an estimated $500 million and can take as long as five years to build — daunting hurdles for money-losing biotech companies even when they have promising drugs in development.

And even after the bioreactors are built, they need to be certified by the Food and Drug Administration — not an easy step given the need to ensure that only pure, uncontaminated human protein gets shipped out to patients.

No company knows this better than Seattle-based Immunex Inc., which also has facilities in Snohomish County’s Canyon Park.

Immunex is losing more than $200 million a year because it can’t meet the overwhelming demand for its rheumatoid arthritis drug Enbrel, approved in late 1998.

As Immunex was developing Enbrel, it had no idea how popular it would ultimately become and was unwilling to build its own factory. Instead, it contracted with Germany’s Boehringer Ingelheim, which has about 75,000 liters of capacity.

Boehringer also serves several other companies, and Immunex doesn’t always get the capacity it wants, exacerbating the company’s supply problems.

Even during the best of times, Immunex can’t make enough of its drug.

"We had no notion how the drug would be accepted," said Peggy Phillips, Immunex’s chief operating officer. When the FDA approved Enbrel in November 1998, the company hoped to achieve annual sales of $500 million within three years, she said — instead, sales surged to $650 million in two years.

The company could have sold as much as $1 billion worth of Enbrel last year, Molowa said. Instead, it rang up sales of $762 million.

All those lost sales robbed momentum from the once high-flying company. Immunex shares traded as high as $80 in 2000, but by late last year, its stock was languishing and Amgen was able to gobble up Immunex for about $25 a share.

Amgen’s takeover is expected to win regulatory approval in the next month, but its dominant position in the industry won’t help it immediately solve the Enbrel supply problem.

The shortage is so bad that Immunex recently notified doctors that many of their 82,000 patients on Enbrel would experience delays of "several days to a few weeks" in April and May in getting prescriptions filled.

Immunex is racing to complete construction of a new $500 million factory in Rhode Island, which it hopes to have operating by next year. But even that new factory won’t be enough for Immunex.

Despite all the construction, Immunex and Amgen still need Genentech’s assistance. Starting in 2004, Genentech will help manufacture Enbrel, which Amgen estimates will garner up to $3 billion in sales within three years.

Copyright ©2002 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.