Product sales increased 14% over third quarter 2007 to $201 million

SAN DIEGO, Oct. 21 /PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc. (Nasdaq: AMLN) today reported financial results for the quarter ended September 30, 2008. The Company reported total revenue of $218.4 million for the third quarter, including net product sales of $201.4 million, a 14% increase over the same period in 2007. Net loss for the quarter ended September 30, 2008 was $77.7 million, or $0.57 per share. Net loss per share, excluding an impairment loss on investments of $14.9 million, or $0.11 per share, was $0.46 per share.

'This quarter we reported strong product sales in the face of an increasingly challenging environment. Additionally we completed an exenatide once weekly product supply agreement with Lilly that strengthens our balance sheet and provides financial flexibility for the future,' said Daniel M. Bradbury, president and chief executive officer of Amylin Pharmaceuticals. 'We continue to manage the company towards sustainable, profitable growth by driving BYETTA and SYMLIN revenue, managing our expenses, and bringing exenatide once weekly to market.'

Quarter ended September 30, 2008

Net product sales of $201.4 million for the third quarter include $179.9 million for BYETTA(R) (exenatide) injection and $21.5 million for SYMLIN(R) (pramlintide acetate) injection. This represents a 14% increase over net product sales of $177.4 million for the same period in 2007.

Revenues under collaborative agreements were $17.0 million for the quarter ended September 30, 2008, compared to $12.6 million for the same period in 2007. The increase reflects higher cost-sharing payments from Lilly for development expenses for BYETTA and exenatide once weekly.

Selling, general and administrative expenses increased to $99.7 million for the quarter ended September 30, 2008, compared to $87.7 million for the same period in 2007. The increase reflects costs associated with the Company's expanded field force, investments in market development activities for exenatide once weekly and continued investment in promotional activities for BYETTA and SYMLIN.

Research and development expenses increased to $73.5 million for the quarter ended September 30, 2008, compared to $61.5 million for the same period in 2007. The increase primarily reflects increased development expenses for exenatide once weekly and increased expenses for the Company's obesity development programs. Non-GAAP, research and development expenses net of cost sharing payments increased to $57.5 million for the quarter ended September 30, 2008 compared to $49.9 million for the same period in 2007.

Collaborative profit sharing, which represents Lilly's share of the gross margin for BYETTA, was $80.6 million for the quarter ended September 30, 2008, compared to $75.0 million for the same period in 2007.

Loss on impairment of investments was $14.9 million for the quarter ended September 30, 2008. This primarily represents recognized impairment losses on the Company's equity investments in privately held entities of $9.0 million and an impairment loss of $5.9 million associated with a corporate debt security in the Company's investment portfolio. The net book value of the Company's remaining equity investments in privately held entities was less than $5.0 million at September 30, 2008. There was no comparable expense for the quarter ended September 30, 2007.

Net loss for the quarter ended September 30, 2007 was $77.7 million, or $0.57 per share, compared to $39.8 million, or $0.30 per share, for the same period in 2007.

Third quarter highlights

Highlights of Amylin's third quarter and recent activities include:

BYETTA

• Initiated co-promotion of BYETTA with third party Lilly primary care sales force, increasing the sales force promoting BYETTA by 40%.

Exenatide Once Weekly

• Executed an exenatide once weekly supply agreement with Lilly, under which Lilly will make an initial payment of $125 million to Amylin in the fourth quarter of 2008. In addition, Lilly extended a $165 million line of credit to Amylin. These agreements underscore Amylin's and Lilly's commitment to the successful commercialization of exenatide once weekly, strengthen Amylin's balance sheet and provide additional financial flexibility.
• Announced publication of DURATION-1 results in The Lancet.