Amylin Pharmaceuticals (AMLN) has really been on a tear these past two trading days. As a long term holder of AMLN this is a pleasant development. However, I have to ask why the sudden jump in the stock over the past two trading sessions? There are several reasons for the sudden rise of AMLN of which any one or a combination of could be causing the rise. Here are some of those causal factors:
• The stock was simply too oversold and short interest climbed too high
• With all of the negative news about Zetia from Schering Plough (SGP) and Lipitor from Pfizer (PFE) and other statins perhaps someone finally woke up to the fact that diabetes treatment is all that much more important and the big cap pharmaceutical companies may be forced to buy AMLN
• The decline of the inhaled insulin product lines gives AMLN approved and commercially available products – Byetta and Symlin - more credibility and sales potential.
I continue to believe that AMLN Byetta LAR long acting formulation will be approved and once that occurs we will see a huge jump in analysts estimates and future sales. That is at least a year out but well worth the wait as Byetta and Symlin sales continue to grow.
At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of AMLN --- although positions can change at any time.