First Albany Cuts Opinion on Amylin Pharma

Analyst Lucy Lu says sales growth of the company's Byetta compound was slower than her previous estimates

First Albany cut its investment recommendation on Amylin Pharmaceuticals (AMLN ) to underperform from neutral.

Analyst Lucy Lu said the company's 65 cents third quarter earnings per share loss exceeded her 52 cents loss estimate, and its $18 million in Byetta sales were below her $28 million estimate. The company's Selling, General and Administrative expenses of $52 million topped her $45 million estimate. She noted that this was Byetta's first full quarter on the market; while still early in the launch, prescription data suggest that the Byetta sales growth rate was slower than her previous estimates. As such, she cuts her $43 million fourth quarter Byetta sales estimate to $40 million, and also reduces her 2005 to 2008 U.S. Byetta sales estimates to $66 million, $260 million, $360 million, and $467 million from $78 million, $350 million, $597 million, and $767 million, respectively. She also widened her $1.75 2005 loss estimate to a $1.89 loss and her 44 cents earnings per share 2006 loss to a $1.59 loss.

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