Amylin Pharmaceuticals Raises $30.6 Million in Debt Financing From J&J
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SAN DIEGO, Oct. 1 /PRNewswire/ -- Amylin Pharmaceuticals, Inc.
(NASDAQ:AMLN) today reported that it has received proceeds of
$30,619,000 from a draw down under a $57 million development loan facility
from Johnson & Johnson (NYSE:JNJ). The money will be applied against the
Company's one-half share of development expenses for pramlintide, a diabetes
drug candidate that is currently the subject of Phase III clinical studies,
during the second through fourth quarters of 1997. Johnson & Johnson, the
Company's partner for the development and commercialization of pramlintide,
continues to pay half of ongoing pramlintide development costs. The loan
carries an interest rate of 9.0%, and principal and accrued interest are
payable out of future pramlintide profits. In conjunction with the borrowing,
the Company issued warrants to Johnson & Johnson to purchase 1,530,950 shares
of Amylin Pharmaceuticals' common stock with a fixed exercise price of $12 per
share and a 10-year exercise period. The loan will be secured by the Company's
issued patents and patent applications relating to amylin.
"By drawing down a portion of the loan available to us from Johnson &
Johnson, we were able to finance a significant amount of our pramlintide
expenses," said Richard M. Haugen, Amylin Pharmaceuticals' President and Chief
Executive Officer. "Johnson & Johnson continues to make substantial
contributions to our pramlintide collaboration."
Amylin Pharmaceuticals, Inc. is focused on developing novel medicines for
treating metabolic disorders. The Company has pioneered research of the
hormone amylin, which is believed to play an important role in glucose control
and is missing or deficient in millions of people with diabetes. The Company
is collaborating with Johnson & Johnson to develop pramlintide, a synthetic
analog of human amylin, with the aim of improving metabolic control for people
with diabetes. Pramlintide administration has resulted in clinically relevant
improvement in glucose control and other indicators of metabolic control, such
as body weight and cholesterol profiles, during Phase II and initial Phase III
clinical testing when used in conjunction with insulin therapy in people with
diabetes. Four Phase III Paradigm clinical studies are underway and are aimed
at further demonstrating pramlintide's ability to improve metabolic control,
thereby lowering the risk of degenerative complications. The Company has
expanded its research and development pipeline within the field of metabolic
disorders by starting several new preclinical programs, including validation
of exendin and GLP-1 for diabetes and obesity, the mono-di-tert-butylphenols
for dyslipidemia, and several new drug targets for obesity. Amylin
Pharmaceuticals is headquartered in San Diego, California.
This press release contains forward-looking statements that involve risks
and uncertainties. Actual results may differ materially from those discussed
herein, due to, among other things, the research, development, and market
risks which could adversely affect the Company's timeline for clinical trials,
regulatory approval, and if such approval is received, time to market
thereafter. Additional risks and uncertainties are described in the Company's
most recently filed SEC documents, such as its Form 10-K for the fiscal year
ended December 31, 1996 and its most recent Form 10-Q.
SOURCE Amylin Pharmaceuticals, Inc.
-0- 10/01/97
/CONTACT: Richard W. Krawiec, Ph.D., Director of Corporate
Communications, 619-552-2200/
/Web site: amylin.com |
