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Amgen paring could create more local biotech entrepreneurs


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Those in the biotechnology industry in Southern California are watching the restructuring at Amgen Inc. with some hope that it might boost the number of local startups.

Amgen plans to eliminate 12 to 14 percent of its work force worldwide. The company currently has about 20,000 employees worldwide, including 8,200 at its headquarters in Thousand Oaks.

Matthew Hui expects that the restructuring at Amgen, which includes voluntary buyouts before the company turns to involuntary cuts, could be just what the area needs. He expects some scientists will decide now is the time to pursue their own paths, as he did in 2002 when he started AmProtein in Camarillo.

Ahmed Enany, president and chief executive of the Southern California Biomedical Council, said that is the hope.

People used to joke that Amgen's success was one reason there were more biotech companies in San Diego than Los Angeles, he said. Employees were just too happy there.

In San Diego, the acquisition of Hybritech Inc. by Eli Lilly & Co. in 1985 resulted in a lot of people leaving that company with money in their pockets and an idea for a company.

"You may have a similar dynamic as a result of the restructuring going on at Amgen now," Enany said.

What will determine whether that plays out, he said, is whether the people leaving have the drive to start their own companies. "There are a lot of uncertainties there, but also potential for creating a new crop of companies," he said.

Biotech is still a small industry in Southern California, particularly in Ventura County, said Byeong Chang, founder of IntegrityBio in Camarillo.

If Amgen lays off a lot of people in the area, there may suddenly be people with solid expertise, he said.

"I believe there will be some more growth in the future," he said.

Enany said that could help build the biotech industry and could help Amgen in the long run.

"Amgen historically hasn't been involved in any effort to promote biotechnology in the region. It was like an island unto itself," he said. "This restructuring shows the folly of such a strategy."

Amgen often recruits talent from outside Southern California, and people have to consider the cost of living and housing. Because the company hasn't encouraged a cluster of biotechnology firms nearby, people tend to wonder what their options are if they lose that Amgen job, Enany said.

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