ISI Group Comments on Amylin's Contract Renewal

ISI Group has published a research report on Amylin Pharmaceuticals AMLN after the FBO recently posted its contract renewal with the company. In the report, ISI Group writes, "1. This is not a new contract. It's a renewal for another 5 years for a drug supply of some sorts (i.e. contract expires in March 2017). The FBO could not tell us which pharmaceutical product(s) is/are being supplied. From AMLN's 10-K however it says: “We sell BYETTA and SYMLIN primarily to wholesale distributors, who in turn, sell to retail pharmacies and government entities” 2. The $164MM valuation on the cover is for the 10 year term. In other words, AMLN has already taken the first 5 years. The remaining 5 years will be $16.4MM in revenue / year. 3. At the end of the 10 year period, there is not another option to extend the contract. The contract is deemed “dead.”" Amylin Pharmaceuticals closed yesterday at $15.88.