Like ImClone, Icahn Will Get Amylin (AMLN) Sold
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In a 13D filing on Amylin Pharmaceuticals (Nasdaq: AMLN), activist investor Carl Icahn disclosed he raised his stake in the company to 11,426,157 shares, or 8.3%, and disclosed his intent to nominate a slate of five directors and intends to solicit proxies in favor of that slate.
Amylin Pharmaceuticals confirmed it has reviewed the 13D, but said they have not yet received the required notice with respect to this action.
It is clear to us, from Icahn's past involvement in the biotech sector, that he seeks to get Amylin sold.
The situation with Amylin could play out similar to ImClone. As controversy was surrounding ImClone, related to its ERBITUX cancer drug, and insider selling from CEO Sam Waksal and his friend Martha Stewart, the stock was under pressure during which time Icahn started building his position. For years and years the stock did little. In 2005, Icahn was named Chairman of the company. ERBITUX soon became a big hit drug and the stock was off to the races. In 2008, the company agreed to be acquired by Eli Lilly (NYSE: LLY) for $70 per share, after a bidding war with Bristol-Myers Squibb (NYSE: BMY).
Like ImClone, Amylin has a great but controversial drug, BYETTA, which is used to treat type 2 diabetes. Type 2 diabetes is the most common form of diabetes and is a growing epidemic due to bad eating habits and obesity problem. Shares of Amylin were pummeled in the summer of 2008 after the FDA found a relationship between BYETTA and pancreatitis.
As he did with ImClone, we expect Icahn to push his way on the board, position the company for a sale, then get is sold. Biotech has been the only sector showing promise in M&A lately with the credit meltdown. While a sale may not happen anytime soon, Icahn showed patience with ImClone and will likely show that same patience with Amylin. But sooner or later, Amylin will be gone - sold to the highest bidder!
Amylin Pharmaceuticals confirmed it has reviewed the 13D, but said they have not yet received the required notice with respect to this action.
It is clear to us, from Icahn's past involvement in the biotech sector, that he seeks to get Amylin sold.
The situation with Amylin could play out similar to ImClone. As controversy was surrounding ImClone, related to its ERBITUX cancer drug, and insider selling from CEO Sam Waksal and his friend Martha Stewart, the stock was under pressure during which time Icahn started building his position. For years and years the stock did little. In 2005, Icahn was named Chairman of the company. ERBITUX soon became a big hit drug and the stock was off to the races. In 2008, the company agreed to be acquired by Eli Lilly (NYSE: LLY) for $70 per share, after a bidding war with Bristol-Myers Squibb (NYSE: BMY).
Like ImClone, Amylin has a great but controversial drug, BYETTA, which is used to treat type 2 diabetes. Type 2 diabetes is the most common form of diabetes and is a growing epidemic due to bad eating habits and obesity problem. Shares of Amylin were pummeled in the summer of 2008 after the FDA found a relationship between BYETTA and pancreatitis.
As he did with ImClone, we expect Icahn to push his way on the board, position the company for a sale, then get is sold. Biotech has been the only sector showing promise in M&A lately with the credit meltdown. While a sale may not happen anytime soon, Icahn showed patience with ImClone and will likely show that same patience with Amylin. But sooner or later, Amylin will be gone - sold to the highest bidder!
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