Amgen, the world’s first big biotech company (and, for a while, the largest), rode to prominence thanks to its drugs for treating anemia – a condition caused by the destruction of red blood cells, often as a result of cancer, cancer treatment, or kidney disease. In FY 2010, the company generated revenues of $15B with net earnings of $4.6B.^[1]

Studies in 2007 found that patients taking Amgen’s drugs for anemia caused by cancer were more likely to die than patients who do not take these drugs; the drugs may have increased the migration rate or the rate of metastasis of the tumor. Since then, these drugs have been used less frequently and at lower doses in some therapeutic areas – particularly oncology, where Medicare's decision to restrict reimbursement as a result of safety issues has had a large impact on sales. These changes in prescription frequency have had a major effect on Amgen's revenues.^[2]

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