Icahn reports increased stake in Amylin Pharma
Thursday May 22, 6:24 pm ET
Carl Icahn raises stake in Amylin Pharmaceuticals; is in talks with management
NEW YORK (AP) -- Billionaire investor Carl Icahn on Thursday reported raising his stake in biotech Amylin Pharmaceuticals Inc. and said he is in discussions with management about ways to maximize product sales and development.
In a filing with the Securities and Exchange Commission, Icahn reported owning about 9 million shares, including shares underlying call options, representing a 6.5 percent stake based on 137.1 million shares outstanding as of April 21.
Previously, Icahn reported holding 6.3 million shares of the San Diego-based biopharmaceutical company.
According to the filing, Icahn has recently held discussions with the company's management, and plans to have further conversations about ways to enhance shareholder value.
Amylin shares lost 4 cents to close at $30.96. Shares slipped 6 cents to $30.90 in aftermarket electronic trading.
2nd item on AMLN
Ahead of the Bell: Alkermes
Friday May 23, 8:04 am ET
Alkermes gives weak forecast, but analysts are pleased with new Risperdal Consta pact
NEW YORK (AP) -- Analysts said Friday that they were disappointed with Alkermes Inc.'s fiscal fourth-quarter results and outlook, but they found promise in a new drug development pact with Johnson & Johnson.
The Cambridge, Mass., company swung to a loss in its fiscal fourth quarter, and said it expects to lose money in fiscal 2009. Alkermes will eliminate jobs and close a facility because its partner Eli Lilly & Co. chose to end development of an inhaled insulin drug. Analysts had expected the company to turn a profit for the year.
Alkermes also said it will partner with Johnson & Johnson to develop a once-per-month version of the schizophrenia drug Risperdal Consta. A twice-monthly version is sold by Johnson & Johnson and is the source of most of Alkermes' revenue.
Johnson & Johnson has been developing a rival one-per-month schizophrenia drug, Paliperidone palmitate, with Elan Corp. PLC. Analysts have expressed concern about palmitate's safety and effectiveness, and Jim Reddoch said the new agreement with Alkermes may indicate problems with palmitate.
Soleil Securities analyst Noelle Tune said the deal is a "significant positive for Alkermes," outweighing its disappointing forecast.
Baird analyst Lawrence Neibor downgraded the stock to "Neutral" from "Outperform," however, and cut his price target to $12 per share from $24. He said Alkermes is expecting weak sales of Consta, and some of its expenses will no longer be covered by Lilly.
He added that the diabetes drug candidate Exenatide LAR, which Alkermes is developing with Lilly and Amylin Pharmaceuticals Inc., "is too far from approval to help."
surf's up......crikey
