Genentech Expects Delay on Enbrel

Genentech Inc. of South San Francisco disclosed in a regulatory filing that it was unlikely to produce Enbrel, an arthritis drug, for biotech rival Amgen Inc. on schedule.

Enbrel, with sales of $1.3 billion in 2003, is a key growth driver for Thousand Oaks-based Amgen but a shortage of production capacity has hurt sales in the past. In a filing with the Securities and Exchange Commission this week, Genentech said it probably would not obtain Food and Drug Administration approval to manufacture Enbrel in the "pre-agreed upon timeframe" outlined in its supply contract with Amgen.

Genentech had agreed to begin Enbrel production in early 2004 and to supply approved drug to Amgen in 2005. An Amgen spokeswoman said the company did not anticipate shortages as a result of Genentech's delays and that Amgen still expected Genentech to provide Enbrel in 2005.

-- Denise Gellene