Amylin – Some good news
After a series of downgrades by some analysts Amylin (NASDAQ:AMLN) had some good news today when they announced that the Byetta cartridge issue has been resolved. As we indicated previously investors would be wise to add to their Amylin holdings should shares show any signs of weakness. Diabetic Investor sees no reason to alter our view and sees the window of opportunity closing quickly.
We also find it interesting that besides the analysts downgraded, the short community has begun to circulate rumors about possible Byetta side affects. Frankly we have been down this road before and believe there is nothing substantive here.
At last week’s American Association of Diabetes Educators (AADE) meeting Diabetic Investor spoke with several educators and not unexpectedly their feedback on Byetta was overwhelmingly positive. It should be noted that these are the people who work with patients on a regular basis and have a front row seat. As Diabetic Investor accurately predicted when Byetta was approved the weight loss factor would more than overcome patient’s so-called fear of injections.
It’s also noteworthy that these same educators were less than thrilled over Exubera. While they see benefits to a non-injectable form of insulin, they are dreading the amount of time it will take to educate patients on how to use the delivery device. As a group educators are underpaid and overworked already and the prospect of adding a product that will further eat into their already busy schedules isn’t enticing.
Also making the rounds at the AADE was news that Medtronic (NYSE:MDT) has contacted Animas regarding patent infringement issues. Last year Medtronic successfully sued Smiths, the makers of the Cozmo insulin pump, forcing the company into a settlement that has severally hampered the company’s ability to compete in the insulin pump market. Medtronic wisely waited until Animas was acquired by Johnson and Johnson (NYSE:JNJ) before pursuing their claim against Animas. Although JNJ has the resources to fight Medtronic in court, they are cognizant of the fact that the Smiths settlement has only strengthened Medtronic’s patent position.
Diabetic Investor will have a complete wrap up of the AADE in our next issue.
David Kliff
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