Amylin posts $475 mln cash at March 31, repays convertible in April

By Jennifer Lanning Drey

Savannah, Ga., April 18 - Amylin Pharmaceuticals, Inc. increased its cash, short-term investments and restricted cash balance by $17 million in the first quarter to $475 million at March 31, Mark Foletta, Amylin's chief financial officer, reported Monday during its quarterly earnings conference call.

"We are managing the business with operational discipline and are focused on generating sustainable positive operating cash flow and maintaining a strong cash position," Foletta said.

The first-quarter cash improvement represented the receipt of a $10 million milestone payment for the Japan launch of Byetta, favorable working capital changes and the company's commitment to tightly managing its cash, he said.

Following the close of the first quarter, Amylin repaid the $200 million of its 2.5% convertible senior notes that matured on April 15.

Pro forma for the maturity, the company had cash, investments and restricted cash at March 31 of $275 million.

To help strengthen its cash balance, Amylin has notified its partner Eli Lilly of its intent to draw on a $165 million line of credit that was made available to the company as part of a product supply agreement entered into in 2009.

If drawn, the proceeds may be used for general corporate purposes and would be due in the second quarter of 2014.

Amylin's current operating model anticipates - and requires - the launch of Bydureon in the United States in order to deliver the company's stated goal of sustainable positive cash flow growth, Foletta said.

Q1 revenues $152.7 million

Amylin reported total revenue of $152.7 million for the first quarter, which included net product sales of $150.8 million and revenues under collaborative agreements of $1.9 million. The figure compared with revenues of $174.1 million in the first quarter of 2010.

The GAAP net loss was $37.3 million for the first quarter, compared to net loss of $38.2 million for the same period in 2010.

"Our strong first-quarter results reflect the continued emphasis we are placing on controlling our spending and driving efficiencies across our business," Daniel Bradbury, Amylin's chief executive officer, said during the call.

Amylin is a San Diego biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.