AMLN Amylin Pharmaceuticals, Inc. (MM)

Amylin Pharmaceuticals Reports First Quarter Financial Results Company Launching Two First-in-Class Diabetes Medicines in Second Quarter SAN DIEGO, May 4 /PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) today reported a net loss of $43.6 million, or $0.43 per share, for the first quarter ended March 31, 2005, compared to a net loss of $37.3 million, or $0.40 per share, for the same period in 2004. At March 31, 2005, the Company held cash, cash equivalents and short-term investments of approximately $440 million. The Company's operating activities used approximately $45.0 million of cash in the first quarter of 2005, compared to $49.4 million in the same period in 2004. "With the recent approvals of two first-in-class diabetes medicines, SYMLIN and BYETTA, the remainder of 2005 is set up to be a year of transformation for Amylin Pharmaceuticals," said Ginger L. Graham, President and Chief Executive Officer, Amylin Pharmaceuticals, Inc. "Commercial activities are well underway for both products. SYMLIN is commercially available, and BYETTA will be available to pharmacies by June 1." The Company reported revenues under collaborative agreements of $4.3 million for the quarter ended March 31, 2005 compared to $6.7 million for the same period in 2004. Revenue in the current quarter consists primarily of amounts earned under the collaboration with Eli Lilly and Company on BYETTA(TM) (exenatide) injection including cost sharing payments and the continued amortization of up-front payments. The decrease in the current period principally reflects lower expense sharing payments resulting from a reduction in BYETTA development expenses in the current quarter as compared to 2004. Research and development expenses were $27.5 million for the quarter ended March 31, 2005, level with the comparable period in 2004. Research and development activities in the current period reflect increased expenditures for the Company's Phase 2 programs in obesity, diabetes and cardiovascular disease offset by reductions in development expenses for BYETTA and SYMLIN, as compared to the same period in 2004. Selling, general and administrative expenses for the quarter ended March 31, 2005 were $20.1 million, compared to $16.1 million in the same period in 2004. The increase reflects increased pre-launch costs for both medicines and continued investments in business infrastructure to support two product launches. 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 first quarter 2005 operating results and information regarding key trends and assumptions for operations for the remainder of fiscal 2005. The call will be webcast live through Amylin's corporate website and a recording will be made available following the close of the call. For those without access to the Internet, the live call may be accessed by phone by calling (888) 396-2298 (domestic) or (617) 847-8708 (international), passcode 24262146. A replay of the Quarterly Update Conference Call will also 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 40550012. 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 BYETTA and/or SYMLIN may not prove to be important new therapeutic options or may be affected by unexpected new data or technical issues, BYETTA may not be available to pharmacies by June 1, or that the Company may not be able to effectively launch BYETTA and/or SYMLIN. Commercial and government reimbursement and pricing decisions, the pace of market acceptance and any issues related to manufacturing and supply may also affect the potential for BYETTA and/or SYMLIN. These and additional risks and uncertainties are described more fully in the Company's most recently filed SEC documents, including its Annual Report on Form 10-K for the year ending December 31, 2004. Amylin undertakes no duty to update these forward-looking statements. (financial information to follow) AMYLIN PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2005 2004 Assets Current assets: Cash and cash equivalents $147,145 $60,583 Short-term investments 292,726 233,173 Receivables from collaborative partners 3,582 5,770 Inventories 16,052 15,676 Other current assets 12,544 9,156 Property and equipment, net 22,510 20,739 Other assets 12,285 12,703 Total assets $506,844 $357,800 Liabilities and stockholders' equity (deficit) Accounts payable, accrued expenses and other current liabilities $34,664 $37,651 Current portion of deferred revenue 9,286 4,286 Other liabilities, net of current portion 8,672 7,290 Deferred revenue, net of current portion 14,872 20,943 Convertible senior notes 375,000 375,000 Stockholders' equity (deficit) 64,350 (87,370) Total liabilities and stockholders' equity (deficit) $506,844 $357,800 CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Quarter Ended March 31, 2005 2004 Revenue under collaborative agreements $4,262 $6,689 Operating expenses: Research and development 27,468 27,457 Selling, general and administrative 20,071 16,088 Total operating expenses 47,539 43,545 Operating loss (43,277) (36,856) Interest expense, net (327) (417) Net loss $(43,604) $(37,273) Net loss per share - basic and diluted $(0.43) $(0.40) Shares used in computing net loss per share - basic and diluted 101,332 93,776 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Quarter Ended March 31, 2005 2004 Operating activities: Net loss $(43,604) $(37,273) Adjustments to reconcile net loss to cash used for operating activities: Non-cash expenses 3,004 1,428 Working capital changes (4,432) (13,566) Net cash used for operating activities (45,032) (49,411) Investing activities: Purchases, sales and maturities of short-term investments, net (59,829) 12,303 Purchases of equipment and increase in patents, net (3,640) (1,682) Net cash provided by (used for) investing activities (63,469) 10,621 Financing activities: Proceeds from issuance of common stock, net 195,067 2,514 Principal payments on notes payable and capital leases (4) (3) Net cash provided by financing activities 195,063 2,511 Increase (decrease) in cash and cash equivalents 86,562 (36,279) Cash and cash equivalents at beginning of period 60,583 76,615 Cash and cash equivalents at end of period $147,145 $40,336 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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