Following a rise of more than 27 percent in its stock last week, Amylin Pharmaceuticals Inc. is selling more than 5 million shares of common stock to bring in $152 million.
Amylin offered the stock at $31 a share and had about 104 million common shares outstanding before the offering.
The financing includes shares from a shelf registration for $300 million filed in December 2003 and one for 13.3 million shares in 2001. In February, the company completed a public offering of 9.2 million shares of its common stock at $22 per share, for net proceeds of $190 million. The remaining shares from the two registrations coupled with an automatic 20 percent increase fills out the offering.
Proceeds will be used to support Amylin's two main drugs, Byetta and Symlin, as well as others in the development pipeline: an obesity drug and a product for congestive heart failure, both in Phase II, and a second obesity drug and a product for atherosclerosis related to cardiovascular disease, both in Phase I, said Alice Bahner, executive director of investor relations.
"Having a fully operational company and supporting two products takes money," Bahner said.
Last week, the stock jumped $6.07 to close at $28 following Amylin's release of positive early data from an ongoing Phase II study of its long-acting-release formulation of Byetta in Type II diabetes. Byetta is in a class of drugs known as incretin mimetics and is designed to stimulate the body's ability to produce insulin to combat elevated blood sugar levels. The stock (NASDAQ:AMLN) fell 96 cents Tuesday to close at $31.70.
The study showed that after 15 weeks of treatment, the 45 patients with Type II diabetes had a 2 percent improvement in glucose control as measured by hemoglobin A1C. Within the treatment period, 12 of 14 high-dose subjects achieved an AIC level of 7 percent or less—the glucose level recommended by the American Diabetes Association. None of the 14 patients receiving placebo achieved that target. Patients receiving Byetta also lost an average of nine pounds, compared to the placebo group.
The less-frequent dosing was efficacious and pointed to a possible better profile for the long-acting version, helping drive the stock.
Amylin and partner Eli Lilly and Co., of Indianapolis, launched Byetta in June. By June 30, Amylin had net product sales of $8.7 million, including $7.5 million for Byetta and $1.2 million for Symlin, Bahner said.
For the second quarter, the company had a net loss of $27 million, or 26 cents per share, and had about $401 million on hand in cash and short-term investments.
Bahner said Amylin in 2005 expects to spend $125 million to $135 million on research and development and another $45 million to $50 million on selling, general and administrative expenses, while forecasting collaborative revenue at $45 million to $55 million.
Goldman, Sachs & Co., of New York, is the sole underwriter for the offering.
In other financings news:
• Dynavax Technologies Corp., of Berkeley, Calif., filed a shelf registration statement to sell, from time to time, up to $75 million of its common stock. Dynavax, which develops products to treat and prevent allergies, infectious diseases and chronic inflammatory disease, expects the proceeds to go toward general corporate purposes, including product development activities.
• Inotek Pharmaceuticals Corp., of Beverly, Mass., raised $25 million in the first tranche of a planned $35 million Series B round. The funds are expected to help the company further its development pipeline, which includes its lead product, an inhibitor of the nuclear enzyme poly (ADP-ribose) polymerase in a Phase IIa trial in acute cardiovascular indications and in Phase Ib trials in oncology. Inotek also has three other products in Phase I development: a selective adenosine 1 agonist targeting atrial fibrillation, an inhibitor of xanthine oxidase to treat congestive heart failure and an inosine analogue in development for ulcerative colitis. In addition, the company has three preclinical products expected to enter human testing next year in inflammatory and oncology indications. The financing was led by Pitango Venture Capital, and existing investors Care Capital LLC, Rho Ventures and MedImmune Ventures Inc., a subsidiary of Gaithersburg, Md.-based MedImmune Inc., also participated. In connection with the financing, Nissim Darvish, a partner at Pitango, joined Inotek's board. The company expects to complete the second tranche of its Series B by the end of the year.
• Manhattan Pharmaceuticals Inc., of New York, raised $11.9 million through a private placement of common stock and warrants. The company sold about 10.8 million shares at $1.11 per share, and also granted investors warrants to buy about 2.2 million shares at an exercise price of $1.44 per share. Warrants are exercisable for a five-year period. The financing was completed by New York-based Paramount BioCapital Inc. Net proceeds, expected to total about $11 million, will be used for working capital, general corporate purposes and to fund further development of the company's three lead compounds: oleoyl-estrone for obesity, topical PTH (1-34) for psoriasis and lingual spray propofol for pre-procedural sedation.