Amgen to Buy Stake in Stem Cell Firm

Amgen Inc. of Thousand Oaks said Wednesday that it would buy a $20-million stake in stem cell researcher ViaCell Inc.

ViaCell in turn canceled its initial public offering, which had been scheduled for Wednesday.

The agreement expands an earlier accord between ViaCell and Amgen, the world’s biggest biotechnology company.

Boston-based ViaCell says it is responsible for early development of drugs created through the partnership.

Amgen will gain access to potential drugs for cancer, muscular dystrophy and heart conditions.

Researchers believe that stem cells hold promise for treating a range of diseases, and Amgen is boosting the number of experimental drugs it studies to convince investors that it will have future products.

“Amgen is clearly committed to building out its early-stage pipeline,” said Mark Schoenebaum, an analyst at U.S. Bancorp Piper Jaffray. “This is another example of that.”

Shares of Amgen fell 18 cents to $61.79 in Nasdaq trading. They have climbed 28% this year, compared with a 46% jump in the Nasdaq biotechnology index.

The announcement follows other agreements Amgen has signed this year, including those with Swedish drug maker Biovitrum, experimental cancer drug developer Tularik Inc. and closely held NeoGenesis Pharmaceuticals Inc.