Amylin Soars on Bydureon Aproval

[Stocks-to-Watch]

Three times’s a charm for Amylin*Pharmaceuticals (AMLN). The drug maker and its partner*Alkermes (ALKS)announced*today that*the U.S. Food and Drug Administration has approved Bydureon, the first once-weekly treatment for type 2 diabetes, sending both stocks rising in after-market action.

Shares of both stocks were halted just before 2 p.m. But after the close, shares of Amylin soared almost 15% to $13.94 a share, while Alkermes stock price rose almost 5% to $20 a share.

It’s been a prolonged and bumpy approval process. The drug was rejected on two previous occasions and the agency required extra testing to alleviate safety concerns. And along the way, Amylin severed its longstanding diabetes-drug partnership with*Eli Lilly & Co. (LLY).

Bydureon was approved for sale by European regulators in June and will be available in pharmacies here in February. The drug is an extended-release version of Amylin’s older diabetes drug, Byetta, which is injected twice daily, and is designed to work by helping the body to make more insulin to reduce high blood-sugar levels.

Some analysts have estimated Bydureon sales could reach nearly $2 billion annually by the end of this decade. But diabetes is a crowded and competitive drug market with many drug companies developing new treatments.



Original Article Source by Barrons.com