Amylin Makes Obesity Drug Deal: BioBuzz

SAN DIEGO, Calif. (TheStreet) -- Investors are waiting for big obesity drug marketing deals from Vivus(VVUS Quote), Arena Pharmaceuticals(ARNA Quote) and Orexigen Therapeutics(OREX Quote), yet the first pact signed Sunday night comes from… Amylin Pharmaceuticals(ARNA Quote)?!?!

It's actually not that much of a surprise. Amylin executives had been guiding the Street to expect a partnership for its early- and mid-stage obesity drug programs before the end of the fourth quarter.

The deal was struck with Japanese drug maker Takeda, which is paying $75 million upfront for worldwide development rights to Amylin's obesity drug pipeline, including pramlintide/metreleptin and davalintide.

More importantly for Amylin, Takeda has agreed to cover 80% of future U.S. clinical trial costs and all the costs for rest-of-world development. Obesity drug trials tend to be large and expensive, so the agreement with Takeda help Amylin conserve its cash to invest in the company's diabetes drug programs.

Amylin's obesity drug pipeline is still a work in progress, hence the relatively small $75 million upfront payment. But Amylin is eligibile to receive about $1 billion in future development and commercial milestone from Takeda if any of the drugs pan out. Amylin will also receive double-digit royalties on any worldwide sales.

So Amylin got its obesity drug deal done, so someone should light a fire under Vivus, Arena and Orexigen.

GTx CEO Blames FDA for Bone Drug Rejection

(At 10:08 AM ET)

GTx(GTXI Quote) CEO Mitch Steiner blasted the Food and Drug Administration on a conference call Monday morning after regulators refused to approve the company's bone drug acapodene.