Dan, Just as a refresher, I looked up AMLN's latest loan from JNJ which includes options to buy AMLN for $12 ten years from now. I hope that such terms don't "cap" AMLN's price for the next ten years:
Wednesday October 1 7:30 AM EDT
Company Press Release
Amylin Pharmaceuticals Raises $30.6 Million in Debt
Financing From Johnson & Johnson
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.
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