SAN DIEGO, March 24 /PRNewswire/ -- Amylin Pharmaceuticals, Inc.
(Nasdaq: AMLN) today announced that it has raised $15 million in a private
placement of shares of Series A Preferred Stock to a select group of
investors. The financing was led by $6.7 million in investments by Amylin
board members and their affiliated funds.
"We are pleased to announce the completion of this financing," said Joseph
C. Cook, Jr., Chairman and Chief Executive Officer at Amylin Pharmaceuticals.
"The proceeds of this financing, together with our continued tight fiscal
management, should provide us with sufficient funds to carry on our current
business operations into the first quarter of 2000, including completion and
analysis of our ongoing pramlintide studies and continuation of our AC2993
(synthetic exendin-4) development program."
Amylin issued 125,000 shares of Series A Preferred Stock priced at $120.00
per share. Each share is convertible into Common Stock of the Company at an
initial conversion rate of 100 shares of Common Stock per share of Series A
Preferred Stock. The Series A Preferred Stock will automatically be converted
into Common Stock if the closing bid price of the Company's stock remains
above $2.40 per share for 30 consecutive trading days. Dividends on the
Series A Preferred Stock will accrue at a rate of 5% per year. Amylin has
agreed to file a registration statement covering the shares of Common Stock
underlying the Series A Preferred Stock.
Amylin Pharmaceuticals, Inc. is focused on metabolic disorders and
specializes in preclinical characterization of lead molecules and
demonstration of proof of principle in humans. The Company has pioneered
research of the hormone amylin and is developing pramlintide, its patented
synthetic analog of human amylin, for the treatment of diabetes. Two,
one-year U.S. Phase 3 clinical studies of pramlintide in type 1 and insulin-
using type 2 diabetes are ongoing. AC2993 (a synthetic version of exendin-4, a
peptide isolated from the salivary secretions of the Gila monster) is an
investigational drug for type 2 diabetes and related metabolic disorders. The
Company has successfully completed a Phase 1 safety and tolerability trial of
AC2993 and has initiated a clinical study in people with type 2 diabetes. The
Company is currently engaged in partnership discussions for pramlintide and
AC2993. Amylin Pharmaceuticals is headquartered in San Diego, California and
has a European office in Oxford, U.K. The Company has signed a letter of
intent to sell its product development division, Cabrillo Laboratories, to
Magellan Laboratories Incorporated. |
