Diabetes Drug Test Boosts Amylin and Lilly
10/31/07 - 07:37 AM EDT
Adam Feuerstein
A long-acting diabetes drug from Amylin Pharmaceuticals(AMLN Quote - Cramer on AMLN - Stock Picks) and Eli Lilly(LLY Quote - Cramer on LLY - Stock Picks) allows diabetes patients to control their blood sugar levels better than currently approved drugs, according to results from a phase III study released today.
The drug, Byetta LAR, is given as a once-weekly injection. In a 30-week study, Type 2 diabetes patients on Byetta LAR achieved a 1.9% improvement in A1C, a key measure of glucose (blood sugar) control. This compares to an A1C improvement of 1.5% for patients using regular Byetta injection, a currently approved drug that is given twice a day. This result showed Byetta LAR to be statistically superior vs. regular Byetta. In addition, patients in both arms of the study achieved an average weight loss of eight pounds. From a side-effect perspective, the companies said LAR patients reported 30% less nausea than patients on regular Byetta. Byetta LAR used a drug delivery technology from Alkermes(ALKS Quote - Cramer on ALKS - Stock Picks) that allows it to be given just once a week. Once LAR is approved and on the market, Alkermes will receive a 7%-8% royalty on net sales. Shares of Amylin closed Tuesday at $46.80 and were up $1.20, or 2.5%, in Wednesday pre-market trading. Lilly shares closed Tuesday at $53.69; while Alkermes closed at $16.66. The results from the LAR study appear to have achieved the goals set by Amylin and Lilly, and also meet the expectations of investors. At a minimum, LAR needed to show better blood sugar control than regular Byetta. More specifically, investors were generally looking for an A1C improvement in the 1.5% to 2% range.
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