Amylin Pharmaceuticals Inc. (AMLN)

[mlkrborn]

"Recent reports of pancreatitis tied to Byetta have hurt the drug and clouded prospects of the new version, which Lilly is developing with Amylin Pharmaceuticals (AMLN.O: Quote, Profile, Research, Stock Buzz). Amylin shares rose 20 percent on news of the impending drug application.

Lilly expects three experimental cancer drugs from the ImClone deal to be in late-stage testing next year.

CEO John Lechleiter has taken bold steps in his eight months at Lilly's helm, sealing the ImClone acquisition as well as making significant risk-sharing and cost-cutting deals.

But Lechleiter offered little interest in a large pharmaceutical merger, saying Lilly's best path forward was to remain independent.

Lilly backed its long-term forecast of double-digit compound annual earnings per share growth from 2007-2011, and stuck to its 2008 forecast of $3.97 to $4.02 per share, excluding big charges from the ImClone deal.

Lilly shares rose 42 cents to $35.43 in late-afternoon trading on the New York Stock Exchange." (Reporting by Lewis Krauskopf and Ransdell Pierson; Editing by Derek Caney, Steve Orlofsky, Dave Zimmerman, Gunna Dickson, Richard Chang)