Diabetes Drug Approved For Europe (AMLN, LLY)

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) and Eli Lilly & Co. (NYSE: LLY) are in the news on the diabetes front.  The companies have announced that the European Commission has now approved its Type-2 Diabetes treatment Byetta as an add-on therapy to basal insulin.

As a reminder, Amylin agreed to pay $250 million to Lilly as well as milestones of up to $1.2 billion for the molecule that makes up Byetta.  Amylin also confirmed that it will be responsible for the commercialization of Byetta outside of the United States.  Amylin is still working with Lilly during the transition period through 2013.

Amylin shares have not responded so far this morning and the indications have not been matched with any real share volume.  At $15.51, the 52-week range is $8.03 to $18.45.

Amylin currently has a market capitalization rate of $2.27 billion as of now and the company is expected to lose money in 2012 and 2013 even though revenues are expected to be about $681 million and $837 million for 2012 and 2013, respectively.

JON C. OGG