Amylin Takes 4Q Loss As Lilly Partnership Ends

 

From Associated Press (February 7, 2012)

 

 

SAN DIEGO -- Diabetes drug maker Amylin Pharmaceuticals Inc. reported a larger fourth-quarter loss Monday after it ended a partnership with Eli Lilly & Co., which gave Amylin all the rights to the drug Byetta and newly approved Bydureon.

 

Amylin said it lost $461.5 million, or $3.15 per share, including $431.6 million in charges related to the re-acquisition of Byetta and Bydureon. A year ago it reported a loss of $19.2 million, or 13 cents per share. Excluding the payments to Eli Lilly and other one-time charges, Amylin said it lost 9 cents per share in the most recent quarter. Its revenue declined 5 percent to $164.9 million from $174.2 million.

 

Analysts expected the company to take a loss of 7 cents per share on revenue of $153.6 million, according to FactSet.

 

Amylin and Lilly announced in November that they were ending their collaboration. Amylin agreed to pay $250 million to Indianapolis-based Lilly, and dropped a lawsuit regarding a newer collaboration between Lilly and German drug maker Boehringer Ingelheim. Amylin will also pay Lilly 15 percent on global sales of Byetta and Bydureon up to $1.2 billion, plus interest.

 

Byetta is injected twice a day, while Bydureon is taken once per week. Sales of Byetta, which was approved in 2005, fell 3 percent to $132.6 million during the quarter. The Food and Drug Administration approved Bydureon Jan. 27. European Union regulators approved the drug in June, and Amylin is looking for a new partner to help market the drug in other countries.

 

Amylin is now responsible for U.S. sales of Byetta, and is taking over responsibility for sales in other regions.

 

Sales of Amylin's drug Symlin rose 9 percent to$28.3 million, and revenue from collaborative agreements fell to $4.1 million from $11.9 million a year ago.

 

In 2011 Amylin took a loss of $543.4 million, or $3.73 per share, compared to a loss of $152.3 million, or $1.06 per share, in 2010. Revenue fell 3 percent, to $650.7 million from $668.8 million.

 

Shares of Amylin fell 42 cents, or 2.5 percent, to close Monday at $16.68. They recovered 7 cents to $16.75 in aftermarket trading following the earnings report.

 

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Posted: February 2012


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