Amgen announced that an arbitrator has found that Johnson & Johnson breached its license agreement with Amgen by promoting its brand of Epoetin alfa, Procrit, into Amgen's reserved dialysis market. As a consequence, the arbitrator awarded Amgen $150 million in damages.

The arbitrator found that Johnson & Johnson's conduct was illegal, egregious, and indefensible. While he ruled that this conduct did not warrant termination of the license, he found that Amgen was entitled to substantial damages for Johnson & Johnson's breaches. Having established Johnson & Johnson's wrongful conduct, Amgen will also apply to the arbitrator for reimbursement of its fees and costs, as the successful party in the arbitration.

"We are gratified that the arbitrator ruled in our favor and vindicated our serious concerns about Johnson & Johnson's wrongful activities," said Kevin Sharer, Amgen's Chairman and Chief Executive Officer."

Under the 1985 license agreement between Amgen and Johnson & Johnson, Amgen licensed to Johnson & Johnson the exclusive right to promote and sell Procrit for non-dialysis use in the United States. Amgen retained the exclusive right to promote and sell its brand of Epoetin alfa, Epogen, for dialysis use in the United States. Amgen commenced arbitration proceedings in August 1995, claiming that Johnson & Johnson materially breached the agreement by promoting and selling Procrit for dialysis use.