Biotech
Amylin Shares Rise as Icahn Boosts Stake
The Associated Press
02/06/09 - 12:40 AM EST
NEW YORK -- Shares of Amylin Pharmaceuticals(AMLN) outpaced the broader market Thursday as billionaire investor Carl Icahn builds on his ownership position in the company as he attempts to replace board members.
The San Diego-based company's stock rose 79 cents, or 6.4%, to close at $13.16, outpacing gains made in the broader market. Amylin shares have traded between $5.50 and $35 over the past 52 weeks.
Carl Icahn boosted his ownership of the company to 9.43% of outstanding stock from about 8.3% previously, according to a Securities and Exchange Commission filing. In January, Icahn filed documents with the SEC, stating he intended to nominate five people to Amylin's board. It is similar to the powerplay he made prior to taking control of ImClone Systems in 2006 and his attempt to take over Biogen Idec(BIIB).
Shortly after his filing, Eastbourne Capital Management, which owns a 12.5% stake in Amylin, said it would nominate a slate of five directors. Amylin's board currently has 12 directors.
Amylin has been reeling from falling sales of its diabetes treatment Byetta and shares are down about 59% over the past 52 weeks. The drug was linked to cases of acute pancreatitis in 2008, raising concern over the approval of the company's next-generation diabetes treatment LAR. Byetta is taken twice-daily while LAR would be taken once-weekly.
Amylin and Eli Lilly (LLY) are partners on the drug along with Alkermes(ALKS). They will likely face competition from Novo Nordisk(NVO), which is developing the once-daily drug liraglutide. Merck (MRK) already sells Januvia and Bristol-Myers Squibb(BMY) and AstraZeneca(AZN) are developing a treatment called saxagliptin.