Amylin gets approval for Byetta in Europe

Amylin Pharmaceutical's(AMLN) stock continued the recent weakness despite announcing European approval of it's diabetes treatment Byetta. I have previously written about Amylin and had recommended to wait for a better entry point ( click here to see that article).

Some of this recent weakness could be due to some expected competition form the strong launch reported by Merck of it's diabetes drug, Januvia and the anticipated launch of Glavus by Novartis in 2007. Both Glavus and Januvia are from the same class of small molecules known as DPP-IV inhibitors. Byetta affects the GLP-1 pathway and thus provides a different means of controlling blood sugar in patients with diabetes.

It is too early to tell whether the DPP-IV drugs will dominate the market. It is most likely that the addition of all these new treatment options will provide different solutions to different patients. I believe that all these new products will increase the awareness of different treatment options. I also think that Byetta will continue to enjoy good market uptake because of an early launch and a different and unique mechanism of action.

I recommend addition of AMLN at current level of $41 or below.

JMHO