Amgen Rumored to be Quietly Rehiring Employees for Its Shuttered Colorado Facility
October 10, 2016 (Last Updated: 11:15am PT)
By Mark Terry, BioSpace.com Breaking News Staff
Back in June 2015, Thousand Oaks, California-based Amgen began shutting down its 70-acre facility in Longmont, Colorado, auctioning off its equipment, and laying off 330 people. Now there are reports that Amgen is rehiring workers at the facility. And what makes that even more complicated is that Amgen’s sale of the property is reportedly almost completed.
The campus included six buildings that make up a manufacturing building, utilities, two quality control laboratories, a warehouse and an administrative building. Amgen was reportedly selling the entire facility for $85 million.
In July 2014, the company announced it was cutting 2,900 jobs and closing facilities in Washington state and Colorado.
Now unidentified Amgen workers tell the Boulder Daily Camera that the company has been hiring people back because it plans to manufacture its anemia drug Epogen. Originally the Epogen manufacturing was going to be shifted to its facility in Thousand Oaks, California. But some sources are indicating that the company’s supplies of the drug are being used faster than expected and that the California production hasn’t started yet.
However, Amgen officials have told the Daily Camera that it’s not restarting the Longmont facility, although several workers at the site indicate that it is re-launching. Kristin Davis, an Amgen spokesperson, said it is not manufacturing Epogen in Longmont and that the staff there are just maintaining the facility.
Reportedly about 30 staffers have been rehired, and the president of the Longmont Economic Development Partnership, Jessica Erickson, indicated that rumors of rehiring have been going around for most of the year.
The entire 70-acre campus, according to Binswanger real estate agent Eric Dienstbach, who represents Amgen in the sale, told the DailyCamera that the property recently contracted to a single buyer. He also indicated that there is a leaseback deal so Amgen can continue to operate “certain aspects” of the plant for a specified period of time, although he didn’t provide specifics.
Another real estate agent in the area, Pete Averson, told the DailyCamera, “That gives the buyer two or three years to find a tenant, if it’s an investor, or time to figure out how to use the property themselves.”
BizWest reported today that Amgen’s Longmont facility was sold to UK-based AstraZeneca for $64.5 million. It also included 159 acres of vacant land to the west of the Amgen campus.
Meanwhile, just Friday, analysts at Leerink Swann provided a research note on Amgen. Analyst G. Porges believes the company will earn $3.01 per share for the third quarter, down slightly from Leerink Swann’s previous forecast of $3.03. It currently has a “hold” rating on the stock, and estimates the company’s 2016 fiscal earnings at $11.77 per share.
On September 28, Jefferies Group repeated a “buy” rating. On September 29, Vetr raised their rating from “buy” to “strong-buy” and provided a price target of $188.11. On August 26, Robert W. Baird restated an “outperform” rating with a $157 price target. Gabelli, on August 26, gave a “hold” rating. And BMO Capital Markets, on September 22, restated an “outperform” rating with a price target of $190.
Amgen is currently trading for $167.50.