By Lisa Seachrist
WASHINGTON — Amylin Pharmaceuticals Inc. raised $13 million in a public offering of 4 million shares to support its diabetes drug, which is in late stage clinical trials.
The San Diego company generated $2 million more than expected when it registered for the offering with the Securities and Exchange Commission earlier this month. As a result of investor demand, Amylin sold 1 million more shares than proposed July 10. However, investors paid $3.25 per share, which was 12 percent below the $3.687 closing price the day the offering was disclosed.
Amylin intends to use proceeds of the sale to continue development of its lead diabetes drug, pramlintide. The drug, which is a synthetic analogue of the human hormone amylin, is in Phase III trials to enhance glucose control for patients suffering from Type I and Type II diabetes.
In March, Johnson & Johnson, of New Brunswick, N.J., shocked Amylin by pulling out of their collaboration to develop pramlintide. J&J's move forced Amylin to lay off 25 percent of its work force.
Second Round Of Phase III Data Due 4Q
In going to the markets, Amylin raised enough money to complete its four Phase III trials of pramlintide, which were extended in November 1997 following equivocal results of two Phase III trials in August 1997.
Results from two of the trials in Type I and insulin-using Type II diabetes, which are being conducted in Europe and Canada, should be revealed in the fourth quarter of this year.
The company expects to complete its first regulatory filing in Europe for Type II diabetes in the first half of 2000 and to file with the FDA in the second half of 2000 for treatment of both Type I and Type II diabetes.
Investors who participated in the offering include company insiders, institutional investors and individuals. Joseph Cook Jr., chairman and CEO of Amylin, and Howard Greene, cofounder and director of the company, purchased $1 million in stock. In addition, the State of Wisconsin Investment Board and another long-term investor increased their ownership of the company.
The balance of the investments were made by two new institutional investors and individuals, including former Amylin CEO Richard Haugen.
The company offered the stocks directly to investors and used Hambrecht & Quist LLP as its financial advisor.
Amylin's stock (NASDAQ:AMLN) closed Wednesday at $3.563, up $0.594. *