SAN DIEGO, April 18, 2011 /PRNewswire/ -- Amylin
Pharmaceuticals, Inc. (Nasdaq: AMLN) today reported financial
results for the quarter ended March 31,
2011. The Company reported total revenue of $152.7 million for the quarter ended March 31, 2011, which includes net product sales
of $150.8 million and revenues under
collaborative agreements of $1.9
million. Non-GAAP operating loss was $3.2 million for the quarter ended March 31, 2011, compared to $3.8 million for the same period in 2010. GAAP
net loss was $37.3 million, or
$0.26 per share, for the quarter
ended March 31, 2011, compared to
$38.2 million, or $0.27 per share, for the same period in 2010. Net
loss excluding restructuring charges was $34.5 million, or $0.24 per share for the quarter ended
March 31, 2011, compared to
$38.2 million, or $0.27 per share for the same period in 2010.
At March 31, 2011 the Company held
cash, cash equivalents, short-term investments and restricted cash
of $475.2 million. The Company’s
$200 million of 2.5% convertible
senior notes were repaid subsequent to the end of the quarter on
April 15, 2011. During the first
quarter, the Company also notified its partner Eli Lilly and
Company of its intent to draw a $165
million line of credit available from Lilly. These funds may
be drawn in May of 2011, and, if drawn, the loan would be due in
May 2014.
"We continue to manage the business with operational discipline
and ended the quarter in a strong financial position that led to
reduced expenses and improved gross margins," said Mark G. Foletta, senior vice president of
finance and chief financial officer at Amylin Pharmaceuticals. "We
remain focused on our longer-term target of generating sustainable
positive operating cash flow and, we believe, that the significant
cost-savings we have realized over the past two years reflect our
ability to efficiently manage our business and achieve this
goal."
Highlights of Amylin's First Quarter and Recent
Activities
Exenatide
- Initiated a thorough QT study to address questions raised by
the U.S. Food and Drug Administration (FDA) in their complete
response letter regarding the BYDUREON™ (exenatide extended-release
for injectable suspension) New Drug Application.
- Announced that the Committee for Medicinal Products for Human
Use (CHMP) of the European Medicines Agency (EMA) has issued a
positive opinion recommending approval of BYDUREON in the European
Union for the treatment of type 2 diabetes in combination with
certain oral therapies.
- Communicated top-line results from DURATION-6, the sixth
DURATION study that showed weekly BYDUREON significantly improved
glucose control from baseline. These results reinforce the
important role of GLP-1 receptor agonists in the treatment of type
2 diabetes, although BYDUREON did not meet the pre-specified
primary endpoint of non-inferiority to daily Victoza® (liraglutide
(rDNA origin) injection) in this study.
- Announced positive results from a phase 2 study evaluating the
effects of a once-monthly injectable suspension formulation of
exenatide on glycemic control in patients with type 2 diabetes. The
investigational GLP-1 treatment improved glucose control with just
one dose per month. After 20 weeks of treatment (five injections),
patients randomized to the exenatide once monthly treatment arms
experienced average reductions in A1C ranging between 1.3 and
1.5 percentage points from baseline. We are proceeding with
regulatory interactions to outline the next steps for this
important program within the exenatide franchise.
- Lilly received approval in Mexico for an expanded indication of BYETTA®
(exenatide) injection as an add-on therapy to basal insulin.
Obesity Program
- Voluntarily suspended clinical activities in an ongoing phase 2
study of pramlintide/metreleptin for the treatment of obesity to
investigate an antibody-related laboratory finding with metreleptin
treatment in two patients who participated in a previously
completed clinical study of obesity. The Company, with partner
Takeda Pharmaceutical Company Limited, is committed to working
closely with clinical investigators, regulators and outside experts
to determine the best path forward.
"We are pleased with the CHMP's recent recommendation to approve
BYDUREON in Europe. This therapy
could offer millions of people living with diabetes the benefits of
a GLP-1 receptor agonist in just one dose per week," said
Daniel M. Bradbury, president and
chief executive officer at Amylin Pharmaceuticals. "In the coming
quarters, we will continue to advance other key development
programs to address the needs of the patients we serve. This
includes submitting our reply to the BYDUREON complete response
letter, as well as completing our regulatory application for the
use of metreleptin in patients with lipodystrophy."
Financial Results
Net product sales of $150.8
million for the quarter ended March
31, 2011 include net sales of $128.0
million for BYETTA and $22.8
million for SYMLIN® (pramlintide acetate) injection. This
compares to net product sales of $172.3
million, consisting of $149.8
million for BYETTA and $22.5
million for SYMLIN for the same period in 2010.
Revenues under collaborative agreements were $1.9 million for the quarter ended March 31, 2011, unchanged from the same period in
2010, and consist of the amortization of upfront fees received
under the Company's collaboration agreement with Takeda.
Selling, general and administrative expenses decreased to
$64.6 million for the quarter ended
March 31, 2011 from $73.3 million for the same period in 2010. The
decrease reflects reduced expenses associated with BYDUREON
pre-launch activities and lower business infrastructure spending
resulting from continued efforts to drive efficiencies in our
business.
Research and development expenses decreased to $41.9 million for the quarter ended March 31, 2011, compared to $45.3 million for the same period in 2010. The
decrease reflects our reduced cost structure partially offset by
increased development spending on our lipodystrophy development
program.
Collaborative profit sharing, which represents Lilly's share of
the gross margin for BYETTA, was $59.9
million for the quarter ended March
31, 2011, compared to $67.9
million for the same period in 2010.
Non-GAAP operating loss was $3.2
million for the quarter ended March
31, 2011, compared to non-GAAP operating loss of
$3.8 million for the same period in
2010. GAAP net loss was $37.3
million, or $0.26 per share
for the quarter ended March 31, 2011,
compared to $38.2 million, or
$0.27 per share for the same period
in 2010. Net loss excluding restructuring charges was $34.5 million, or $0.24 per share for the quarter ended
March 31, 2011, compared to
$38.2 million, or $0.27 per share for the same period in 2010.
Conference Call
Amylin will webcast its Quarterly Update Call today at
8:30 a.m. ET/5:30 a.m. PT. Daniel M.
Bradbury, Amylin's president and chief executive officer,
will lead the call. During the call, the Company plans to provide
further details underlying its first quarter financial results. A
slide presentation accompanying the conference call is available
through the "Investors" section of Amylin's corporate website at
www.amylin.com.
To access the webcast, please log on to the "Investors" section
of Amylin's corporate website at www.amylin.com approximately
fifteen minutes prior to the call to register, download and install
any necessary audio software. For those without access to the
Internet, the live call may be accessed by phone by calling (800)
857-5738 (U.S./Canada) or (415)
228-4970 (international), participant passcode number 75593. A
replay of the call will also be available by phone beginning
approximately two hours after the close of the call and can be
accessed at (888) 566-0572 (U.S./Canada) or (402) 998-0838 (international).
Note Regarding Use of Non-GAAP Financial Measures
Amylin reports non-GAAP operating loss excluding non-cash items
and other items such as restructuring charges, which is a non-GAAP
financial measure. The Company believes that investors'
understanding of its progress towards its stated goal of generating
sustainable positive non-GAAP operating results is enhanced by this
disclosure. In addition, the Company refers to this non-GAAP
financial information with its analysis of the Company's financial
performance. This non-GAAP financial measure should be considered
in addition to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP.
About Amylin Pharmaceuticals
Amylin Pharmaceuticals is a biopharmaceutical company dedicated
to improving lives of patients through the discovery, development
and commercialization of innovative medicines. Amylin has developed
and gained approval for two first-in-class medicines for diabetes,
SYMLIN® (pramlintide acetate) injection and BYETTA® (exenatide)
injection. Amylin's research and development activities leverage
the Company's expertise in metabolism to develop potential
therapies to treat diabetes and obesity. Amylin is headquartered in
San Diego, California. Further
information on Amylin Pharmaceuticals is available at
www.amylin.com.
This press release contains forward-looking statements about
Amylin, which involve risks and uncertainties. Our actual results
could differ materially from those discussed herein due to a number
of risks and uncertainties, including risks that BYETTA or SYMLIN,
and the revenues generated from these products, may be affected by
competition, unexpected new data, safety and technical issues, or
manufacturing and supply issues; risks that our financial results
may fluctuate significantly from period to period and may not meet
market expectations; risks that any financial guidance we provide
may not be accurate; risks that our clinical trials will not be
completed when planned, may not replicate previous results, may not
be predictive of real world use or may not achieve desired
end-points; risks that the CMC section of the metreleptin BLA
mentioned in this press release may not be submitted in a timely
fashion or that the BLA will not receive regulatory approval; risks
that our preclinical studies may not be predictive; risks that our
NDAs for product candidates, such as the BYDUREON NDA, or sNDAs for
label expansion requests, may not be submitted timely or receive
FDA approval; risks that BYDUREON will not be approved in the
European Union; risks that the tQT study mentioned in this press
release will not be completed in a timely manner; risks that our
response to the FDA's BYDUREON complete response letter may not be
submitted in a timely manner and/or the information we provide in
our response may not satisfy the FDA; risks that the FDA may
request additional information prior to approving BYDUREON; risks
that our expense reductions will not be as large as we expect; and
other risks inherent in the drug development and commercialization
process. Commercial and government reimbursement and pricing
decisions and the pace of market acceptance may also affect the
potential for BYETTA or SYMLIN. These and additional risks and
uncertainties are described more fully in the Company's recently
filed Form 10-K. Amylin disclaims any obligation to
update these forward-looking statements.
(Financial
information to follow)
AMYLIN
PHARMACEUTICALS, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
(unaudited)
|
|
|
Quarter
ended
March
31,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
Revenues:
|
|
|
|
|
|
Net product
sales
|
$150,839
|
|
$172,261
|
|
|
Revenues under
collaborative agreements
|
1,875
|
|
1,875
|
|
|
Total revenues
|
152,714
|
|
174,136
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
Cost of goods
sold
|
12,544
|
|
20,502
|
|
|
Selling, general and
administrative
|
64,625
|
|
73,313
|
|
|
Research and
development
|
41,915
|
|
45,261
|
|
|
Collaborative profit
sharing
|
59,851
|
|
67,900
|
|
|
Restructuring
|
2,858
|
|
–
|
|
|
Total costs and
expenses
|
181,793
|
|
206,976
|
|
|
|
|
|
|
|
|
Operating loss
|
(29,079)
|
|
(32,840)
|
|
|
|
|
|
|
|
|
Interest and other income,
net
|
(8,245)
|
|
(5,363)
|
|
|
|
|
|
|
|
|
Net loss
|
$ (37,324)
|
|
$ (38,203)
|
|
|
|
|
|
|
|
|
Net loss per share - basic and
diluted
|
$ (0.26)
|
|
$ (0.27)
|
|
|
|
|
|
|
|
|
Shares used in computing net
loss per share - basic and diluted
|
144,787
|
|
142,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of reported
GAAP operating loss to non-GAAP operating loss excluding non-cash
and other items is provided in the table that follows (in
thousands, unaudited):
|
|
|
|
|
|
|
|
Quarter
Ended
March
31,
|
|
|
|
2011
|
|
2010
|
|
|
GAAP operating loss
|
$(29,079)
|
|
$(32,840)
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
7,917
|
|
9,703
|
|
|
Other non-cash
compensation
|
4,238
|
|
7,088
|
|
|
Depreciation and
amortization
|
12,712
|
|
14,153
|
|
|
Amortization of deferred
revenue
|
(1,875)
|
|
(1,875)
|
|
|
Restructuring
|
2,858
|
|
–
|
|
|
|
|
|
|
|
|
Non-GAAP operating
loss
|
$ (3,229)
|
|
$(3,771)
|
|
|
|
|
|
|
|
|
|
AMYLIN
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(unaudited)
|
|
|
March
31,
|
December
31,
|
|
|
2011
|
2010
|
|
Assets
|
|
|
|
Cash, cash equivalents and
short-term investments
|
$
460,158
|
$
442,663
|
|
Restricted cash
|
15,000
|
15,000
|
|
Accounts receivable,
net
|
51,926
|
54,645
|
|
Inventories,
net
|
109,486
|
118,629
|
|
Other current
assets
|
31,923
|
45,458
|
|
Property and equipment,
net
|
811,295
|
811,745
|
|
Other assets
|
42,103
|
43,289
|
|
Total
assets
|
$
1,521,891
|
$
1,531,429
|
|
|
|
|
|
Liabilities
and stockholders' equity
|
|
|
|
Current
liabilities
|
$
390,282
|
$
401,595
|
|
Other liabilities, net of
current portion
|
317,387
|
317,654
|
|
Long-term debt
|
475,298
|
468,697
|
|
Stockholders'
equity
|
338,924
|
343,483
|
|
Total liabilities and stockholders' equity
|
$
1,521,891
|
$
1,531,429
|
|
|
|
|
|
|
SOURCE Amylin Pharmaceuticals, Inc.