Amylin Pharmaceuticals

(AMLN)

said Tuesday that it narrowed its quarterly loss in the third quarter, beating Wall Street expectations, as it awaits regulators' review of two diabetes drugs.

Amylin said it lost $34.1 million, or 36 cents a share, on revenue of $13.4 million for the third quarter, which ended Sept. 30. The consensus of analysts tracked by Thomson First Call was expecting a loss of $37.1 million, or 39 cents, on revenue of $11.3 million.

For the same period last year, the San Diego-based company lost $37.5 million, or 40 cents a share, on revenue of $15.4 million.

Amylin, which doesn't have any commercial products, records revenue from an agreement with

Eli Lilly

(LLY) - Get Report

, its partner in developing and marketing the diabetes drug exenatide.

Amylin and Lilly submitted an application to the Food and Drug Administration June 29, and the agency agreed on Sept. 1 to review the drug. Exenatide is the first drug in a new class of medicines known as incretin mimetics being tested for type 2 diabetes, the most common form of the disease in which the body fails to produce enough insulin or the cells ignore the insulin. Insulin is necessary for the body to use sugar, which is an important fuel for cells in the body.

Amylin also is continuing to seek FDA approval of another diabetes drug called Symlin. On Sept. 20, the company said it had filed a response to questions posed by the FDA. The company said the FDA is expected to respond to this application within six months. This is Amylin's third application to the FDA seeking approval for Symlin.

On Tuesday, Amylin's shares rose 42 cents, or 2%, to $21.72.