Amylin Pharmaceuticals Inc. announced Wednesday that it hasfiled a registration statement with the Securities and ExchangeCommission (SEC) for a secondary offering of 2 million shares ofcommon stock.

The underwriters, Morgan Stanley & Co. Inc., Hambrecht &Quist Inc. and Vector Securities International Inc., have theoption to purchase an additional 300,000 shares to coveroverallotments.

If the offering is completed, Amylin (NASDAQ:AMLN) of SanDiego will have close to 19.4 million shares outstanding,exclusive of any shares sold to satisfy the overallotment.

This is the second time Amylin has filed for a secondary stockoffering. Last January, the company tested the public waterswhen it offered 2.5 million shares of common stock. But in mid-February, it withdrew that offering, citing falling stock pricesas the reason. The stock had dropped 39 percent between Jan.18 and Feb. 11 (from $14.25 to $10.25 per share). Thecompany also based its decision to withdraw on its"comfortable" cash position at the time -- over $50 million,according to chief executive officer Howard Greene Jr.

The underwriters for the January filing were Morgan Stanley(also an underwriter on Wednesday's offering) and Alex. Brown& Sons Inc.

Amylin ended its second quarter on June 30 with about $45.4million in cash and cash equivalents, according to MarjorieSennett, vice president and chief financial officer. Its stockclosed unchanged Wednesday at $11.50 a share.

The company decided to pursue a public offering at this timebecause it is planning to expand its ongoing clinical trials, beginnew clinical studies and pursue additional research anddevelopment programs that have arisen over the past fewmonths, Sennett told BioWorld.

Amylin is currently in Phase II clinical trials with its leadcompound, AC137, as an amylin replacement therapy fortreating type I (juvenile onset) diabetes. People with thedisease are apparently deficient in amylin, which is a naturallyoccurring pancreatic hormone, as well as insulin. The hormonemay play an important role in the regulation of carbohydrate,fat and bone metabolism.

The company is also nearing clinical trials on its compoundAC625, an amylin blocker it's been developing in collaborationwith Glaxo Holdings plc. The strategy is to block the excessproduction of amylin, which is thought to contribute tometabolic disorders such as type II (adult onset) diabetes,obesity and hypertension.

-- Jennifer Van Brunt Senior Editor

(c) 1997 American Health Consultants. All rights reserved.