Tuesday, July 24, 2007

Amylin Disapoints Analysts But Not Investors

When it appeared that yesterday’s results for Amylin Pharmaceuticals (AMLN) would be met with disappointment I expected to hunker down for another round of selling. Instead AMLN was higher from the opening bell and was one of the few strong stocks in a dismal tape. While sales of its blockbuster Byetta treatment missed analysts’ expectations by a small margin, AMLN other diabetes treatment Symlin appears to be growing faster than anticipated. AMLN has a long acting formulation, Byetta LAR and an obesity treatment, pramlintide in the pipeline which should provide some excellent future revenue streams if approved. I anticipate LAR to be available in 2009.

The market for diabetic pharmaceuticals and medical testing equipment is growing because of the unfortunate increase in diabetes diagnoses throughout the world and the increasing demand for at home medical testing (for diabetes and other conditions). AMLN is my favorite pharmaceutical play. Inverness Medical Innovations (IMA) is my favorite diagnostic name. A more pure diabetic diagnostic play would be PloyMedica (PLMD). The best source for diabetic research is my friend David Kliff of the Diabetic Investor.

For more information on diabetes, go to the American Diabetes Association website.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of AMLN and IMA --- although positions can change at any time.

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