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DaVita signs new ESA supply agreement with Amgen

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DaVita Inc. has signed a six-year supply agreement that will provide the company with discount pricing and rebates for Amgen Inc.’s Epogen and Aranesp to treat anemia in its kidney patients, replacing prior agreements that were to expire in 2018.

DaVita said it has committed to purchase Epogen and Aranesp in amounts necessary to meet a minimum percentage of the company's and its affiliates' requirements for erythropoiesis stimulating agents in the United States. The percentage varies during the term of the agreement, but DaVita said it will never be less than 90% of ESA requirements.

DaVita also provided initial 2017 guidance for its Kidney Care business. Including the financial impact of this agreement, the company expects 2017 operating income to be between $1.525 billion and $1.625 billion.  The company said it expects 2017 operating income in its DaVita Medical Group segment to be roughly flat with 2016 adjusted operating income.

While DaVita has locked in a deal with Amgen, Fresenius Medical Care reported during an investor call May 3 that it now has 120,000 dialysis patients on Roche’s new anemia drug Mircera.