Rodman & Renshaw Maintains Underperform, $8 PT on Amylin
Rodman & Renshaw reiterates its Underperform rating and $8 target price on Amylin (NASDAQ: AMLN) as the company announces its formulation of exenatide, Bydureon, is approved by the FDA for Type 2 diabetes treatment. The company does not necessarily believe the development to bee too positive a catalyst for the time being.
Rodman & Renshaw notes, "Obviously, this is great news for the company, but we maintain our view that Bydureon's approval in the US will not solve AMLN's current issues. Here, we ...recall that AMLN and Eli Lilly (LLY, Not Rated) terminated their exenatide franchise agreement last November. This termination cost AMLN $1.45 billion to reacquire the global rights to the exenatide franchise. We believe this tremendous financial burden will directly contribute to AMLN's inability to properly execute against its competitors."
AMLN closed at $12.28 a share on Friday.
