Updated from 5:33 p.m. EDTAmylin Pharmaceuticals ( AMLN) reported a narrower loss in the third quarter but also lighter-than-predicted revenue Wednesday. The company lost $39.8 million, or 30 cents a share, on a GAAP basis, for the quarter ended Sept. 30, compared to a loss of $46.1 million, or 36 cents a share, in the year-ago quarter. (The 2006 number included a $7.9 million non-operating charge.) Amylin saw revenue of $190 million, compared to $147 million in the year-ago quarter. Analysts surveyed by Thomson Financial had expected an adjusted loss of 42 cents a share on revenue of $197.9 million. Net product sales were $177.4 million, compared to $138.8 million in 2006. The company reported $161.1 million in sales of its Byetta injection for type II diabetes, compared to $126.4 million in the year-ago quarter, and $16.3 million in sales of its Symlin injection for type I and type II diabetes compared to $12.4 million in the 2006 period. Looking ahead, the drugmaker adjusted 2007 guidance to a range of $760 million to $775 million from a previous outlook of $800 million-plus. On a conference call Wednesday night, the company also addressed Byetta and the FDA alert posted Tuesday. Although the company confirmed an association is suspected between the type II diabetes drug and pancreatitis, Amylin said there is not a causal relationship. CEO Daniel Bradbury noted that a significant number of the patients had at least one risk factor, the time to onset varied from one day to over a year after use of Byetta began, and there is no apparent clustering. Also, management said they don't believe the alert will change the safety requirements for clinical development of the sustained-release versions and that no cases of pancreatitis have occurred in any of the clinical studies. This formulation is being developed with Eli Lilly ( LLY) and Alkermes. ( ALKS). Amylin shares fell 55 cents, or 1.2%, to $46.05 in recent after-hours trading.