Amylin Pharmaceuticals Inc. said Friday that it has decided towithdraw its secondary offering because its stock price hasfallen.
The San Diego company's (NASDAQ:AMLN) common stock hasdropped 39 percent, from $14.25 per share on Jan. 18, the daybefore it filed for the offering, to $10.25 last Thursday. Thestock closed at $11.38 a share on Friday, up $1.13.
"We reached this conclusion because we believe the presentmarket price does not adequately reflect our excellent progresstoward clinical development and business milestones, andbecause our present cash position of over $50 million issatisfactory," said Howard E. Greene Jr., chairman and chiefexecutive officer.
Amylin had offered 2.5 million shares of common stock.Proceeds were earmarked for research and development,including clinical trials, and general corporate purposes. Thecompany had raised $64.4 million in January 1992, selling 4.6million shares at $14 a share. After the secondary offering, itwould have had 19.8 million shares outstanding.
"Although we understand there was sufficient demand for ourstock at its present market price to complete the offering,"Greene said, "we felt the resulting dilution to our shareholderswould not be justified."
The company is working on novel therapeutics based initiallyupon amylin, a newly discovered pancreatic hormone it isdeveloping for replacement therapy for Type 1 diabetics, whohave a deficiency of both insulin and amylin.
In collaboration with Glaxo Holdings plc, Amylin is developingamylin blockade therapy for the treatment of metabolicdisorders, including Type 2 (adult onset) diabetes and obesity,to which excess amylin action is believed to contribute.
The underwriters for the offering were Morgan Stanley & Co.Inc. and Alex. Brown & Sons Inc.
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