Roche's Taspoglutide Setback Gives Amylin (AMLN) A Boost
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Roche Holding AG announced Friday that new safety concerns have arisen over its potential billion-dollar diabetes drug taspoglutide, which could push back a regulatory filing as much as 18 months to better monitor the patients’ response to the treatment.
The company said that some of the patients in the Phase III study have proved to be hypersensitive, showing signs of skin reactions and gastrointestinal symptoms. This has been the case in less than 1 percent of the patients in the study.
Roche executive Fouzia Laghrissi Thode said on a media call Friday that the company expects to see a filing delay of 12 to 18 months at a minimum. The company will take a proactive approach to the situation as it recognizes the seriousness of the problem.
Piper Jaffray analyst Ian Somaiya wrote that the situation with Roche will positively impact Amylin Pharmaceuticals Inc. (NASDAQ: AMLN). The analyst noted that the problem with taspoglutide will keep Amylin's Bydureon as the best diabetic therapy against the GLP-1 class.
"This news should also assuage investor concerns related to sales potential of Bydureon and its ability to deliver sustainable profitability for Amylin," the analysts from Piper Jaffray wrote. "We expect today's news to potentially decrease launch costs of Bydureon as Amylin and Lilly (NYSE: LLY) will now have 3-4 years to establish the drug in the marketplace prior to taspoglutide launch, driving profitability."
Piper Jaffray has maintained its Overweight rating on Amylin with a price target of $26.
In addition to the positive Piper Jaffray comments, JP Morgan upgraded the stock today from Neutral to Overweight.
Shares of Amylin are up 15.45 percent to $19.06 in midday market movement on Friday.
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The company said that some of the patients in the Phase III study have proved to be hypersensitive, showing signs of skin reactions and gastrointestinal symptoms. This has been the case in less than 1 percent of the patients in the study.
Roche executive Fouzia Laghrissi Thode said on a media call Friday that the company expects to see a filing delay of 12 to 18 months at a minimum. The company will take a proactive approach to the situation as it recognizes the seriousness of the problem.
Piper Jaffray analyst Ian Somaiya wrote that the situation with Roche will positively impact Amylin Pharmaceuticals Inc. (NASDAQ: AMLN). The analyst noted that the problem with taspoglutide will keep Amylin's Bydureon as the best diabetic therapy against the GLP-1 class.
"This news should also assuage investor concerns related to sales potential of Bydureon and its ability to deliver sustainable profitability for Amylin," the analysts from Piper Jaffray wrote. "We expect today's news to potentially decrease launch costs of Bydureon as Amylin and Lilly (NYSE: LLY) will now have 3-4 years to establish the drug in the marketplace prior to taspoglutide launch, driving profitability."
Piper Jaffray has maintained its Overweight rating on Amylin with a price target of $26.
In addition to the positive Piper Jaffray comments, JP Morgan upgraded the stock today from Neutral to Overweight.
Shares of Amylin are up 15.45 percent to $19.06 in midday market movement on Friday.
Real-Time Market Moving News and Intelligence –Sign-Up Free Today
http://www.streetinsider.com/premium_content.php
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