AMLN Amylin Pharmaceuticals, Inc. (MM)

Amylin Pharmaceuticals Reports 2004 Financial Results - 2004 Development Milestones Achieved on Plan - SAN DIEGO, March 2 /PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) today reported financial results for the quarter and year ended December 31, 2004. The Company reported a net loss of $157.2 million, or $1.67 per share, for the fiscal year ended December 31, 2004, compared to a net loss of $122.8 million, or $1.33 per share, for the year ended December 31, 2003. For the fourth quarter ended December 31, 2004, the Company reported a net loss of $46.4 million, or $0.49 per share, compared to a net loss of $17.3 million, or $0.19 per share, for the same period in 2003. The Company used approximately $163 million of cash for its operating activities in 2004, and held cash, cash equivalents and short-term investments of approximately $294 million at December 31, 2004. In February 2005, the Company completed a public offering of 9.2 million shares of its common stock generating net proceeds of approximately $191 million. "We achieved all development milestones for 2004 on plan and within financial expectations," said Ginger L. Graham, President and CEO of Amylin Pharmaceuticals, Inc. "In 2005, we are focused on execution as we prepare for the potential launch of two first-in-class drug candidates for the treatment of diabetes, SYMLIN(R) and exenatide." The Company reported revenues under collaborative agreements of $34.3 million in fiscal 2004, compared to $85.7 million in fiscal 2003. For the fourth quarter of 2004, revenues under collaborative agreements were $6.6 million, compared to $41.0 million in for the same period in 2003. The fourth quarter of 2003 includes $30 million of milestone revenue earned pursuant to the Company's exenatide collaboration agreement with Eli Lilly and Company. Revenue in all periods consists primarily of the amortization of up-front payments, expense equalization payments and milestone payments earned pursuant to the Lilly collaboration agreement. The decrease in 2004 reflects a shift in the relative proportion of exenatide development expenses between Amylin and Lilly and a reduction in milestone revenue. Research and development expenses for 2004 decreased to $119.6 million, compared to $149.4 million in 2003. For the fourth quarter of 2004, research and development expenses decreased to $31.3 million, compared to $40.0 million for the same period in 2003. The decrease in the current periods primarily reflects reduced expenses for exenatide development following the completion of the pivotal Phase 3 trials in late 2003, partially offset by increased costs associated with the advancement of the Company's other development programs. Selling, general and administrative expenses for fiscal 2004 increased to $67.0 million, compared to $56.8 million in fiscal 2003. For the fourth quarter of 2004, selling, general and administrative expenses increased to $20.2 million compared to $17.9 million for the same period in 2002. The increase in late 2004 reflects increased pre-launch costs and continued investment in business infrastructure to support future product launches. Net interest and other income decreased by $5.9 million for the year ended December 31, 2004. The decrease reflects the recognition of a one-time gain of $3.6 million in 2003 in connection with an early repayment of debt at a discount and increased interest expense associated with the Company's $375 million convertible debt placements in July 2003 and April 2004. Conference Call Amylin will webcast its Quarterly Update Conference Call today at 12:00 p.m. Eastern/9:00 a.m. Pacific. The Company will provide supporting details underlying its fourth quarter and 2004 operating results and information regarding key trends and assumptions for 2005 operations. The call will be webcast live through Amylin's corporate website and a recording will be made available following the close of the call. To access the webcast, please log on to http://www.amylin.com/ approximately fifteen minutes prior to the call to register, download and install any necessary audio software. A recording will be available by phone for 24 hours beginning approximately one hour after the close of the call and can be accessed at 888-286-8010 (domestic) or 617-801-6888 (international), passcode 26336405. About Amylin Amylin Pharmaceuticals is a biopharmaceutical company committed to improving lives through the discovery, development and commercialization of innovative medicines. This press release contains forward-looking statements about Amylin, which involve risks and uncertainties. The Company's actual results could differ materially from those discussed herein due to a number of risks and uncertainties, including that the use of cash from operations in 2005 may be higher than expected, the anticipated payments from Lilly may not be earned, or FDA requirements for exenatide and/or SYMLIN approval may not be met or such approvals may be delayed and/or limited. These and additional risks and uncertainties are described more fully in the Company's most recently filed SEC documents, including its recently filed prospectus supplement. AMYLIN PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, 2004 2003 Assets Current assets: Cash and cash equivalents $60,583 $76,615 Short-term investments 233,173 193,161 Receivables from collaborative partners 5,770 791 Inventories 15,676 11,841 Other current assets 9,156 6,140 Property and equipment, net 20,739 13,691 Other assets 12,703 8,806 Total assets $357,800 $311,045 Liabilities and stockholders' equity (deficit) Accounts payable, accrued expenses and other current liabilities $37,651 $41,118 Current portion of deferred revenue 4,286 4,286 Other liabilities, net of current portion 7,290 2,196 Deferred revenue, net of current portion 20,943 25,229 Convertible senior notes 375,000 175,000 Stockholders' equity (deficit) (87,370) 63,216 Total liabilities and stockholders' equity (deficit) $357,800 $311,045 CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Years Ended December 31, December 31, 2004 2003 2004 2003 Revenues under collaborative agreements $6,597 $41,022 $34,268 $85,652 Operating Expenses: Research and development 31,335 40,045 119,558 149,431 General and administrative 20,173 17,920 66,958 56,761 Acquired in-process research and development -- -- -- 3,300 Total operating expenses 51,508 57,965 186,516 209,492 Operating Loss (44,911) (16,943) (152,248) (123,840) Interest income (expense), net (1,490) (395) (4,909) 1,032 Net loss $(46,401) $(17,338) $(157,157) $(122,808) Net loss per share - basic and diluted $(0.49) $(0.19) $(1.67) $(1.33) Shares used in computing net loss per share - basic and diluted 94,377 93,482 94,054 92,396 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except per share data) Years Ended December 31, 2004 2003 Cash used in operating activities $(162,853) $(143,405) Investing activities: Purchases, sales and maturities of short-term investments, net (40,679) (115,427) Purchases of equipment and increase in patents, net (13,115) (12,860) Cash used in investing activities (53,794) (128,287) Financing activities: Proceeds from issuance of common stock, net 7,016 172,446 Proceeds from issuance of convertible debt, net 193,613 169,696 Principal payments on notes payable and capital leases (14) (63,250) Cash provided by financing activities 200,615 278,892 Increase (decrease) in cash and cash equivalents (16,032) 7,200 Cash and cash equivalents at beginning of year 76,615 69,415 Cash and cash equivalents at end of year $60,583 $76,615 DATASOURCE: Amylin Pharmaceuticals, Inc. CONTACT: Mark G. Foletta, Vice President Finance and Chief Financial Officer of Amylin Pharmaceuticals, Inc., +1-858-552-2200 Web site: http://www.amylin.com/

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