Amylin Signs Weight-loss Drug Deal With Takeda

NEW YORK (AP) — Amylin Pharmaceuticals Inc. says it could potentially receive more than $1 billion from a partnership with Japan's Takeda Pharmaceutical Co. on potential weight-loss treatments.

Company shares climbed nearly 10 percent in trading Monday, despite an announcement that government regulators strengthened warning labels on company's diabetes treatment Byetta.

The Food and Drug Administration highlighted bolstered language about kidney damage on the drug's labeling.

Amylin, based in San Diego, said late Sunday it will receive $75 million upfront from Takeda and said future payments for development and achieving commercial milestones could top $1 billion.

The deal includes two potential weight-loss treatments, a pramlintide-metreleptin combination and davalintide. Both potential drugs are in midstage, or Phase II, clinical development. In July, Amylin said pramlintide-metreleptin prompted an average weight loss of 22 pounds, or 11 percent of patients' body weight, during a midstage study.

The deal also includes additional compounds from both companies research programs. Aside from milestone payments, Amylin is also eligible for royalties on global sales.