Bad news from the FDA can hurt pharma companies fast and after earlier news this week that Amylin's diabetes drug Byetta was associated with some serious cases of acute pancreatitis, the company's stock began to plummet. Shares were down 13 percent by Monday.
Eli Lilly, which co-markets the drug, isn't receiving equally harsh treatment from investors.
What is interesting is that the there were already 30 reports of pancreas related problems in October. The latest news added six more reports, two of which led to deaths and were quite serious, but was in light of patients with diabetes already being at increased risk of pancreas problems. Later, in an interview [1] with the Diabetic Investor, the FDA said the news was actually about a "rare and uncommon event."
Finance experts say the stock will likely recover and that panic in the industry can provide a great opportunity for investors who want to buy low.
--catch the story [2] at the Motley Fool
--read more [3] at Forbes
--see the latest [4] at Sign on San Diego
Related Articles:
FDA seeks tougher labeling for Byetta after deaths [5]
Lilly diabetes med linked to pancreatitis [6]
Byetta - Top 10 Drug Warnings and Recalls [7]
FDA Updates Information for Healthcare Professionals for Byetta [8]
Links:
[1] http://www.forbes.com/finance/2008/08/19/amylin-byetta-diabetes-pf-etf-in_dk_0819soapbox_inl.html
[2] http://www.fool.com/investing/high-growth/2008/08/19/too-much-punishment-for-amylin.aspx
[3] http://www.forbes.com/business/2008/08/18/diabetes-amylin-fda-biz-healthcare-cx_mh_0818amylin.html
[4] http://www.signonsandiego.com/news/business/20080820-9999-1b20amylin.html
[5] http://www.fiercepharma.com/story/diabetes-drug-death-reports-prompt-tougher-labeling/2008-08-19
[6] http://www.fiercepharma.com/story/lilly-diabetes-med-linked-pancreatitis/2007-10-17
[7] http://www.fiercepharma.com/special-reports/8-byetta-top-10-drug-warnings-and-recalls
[8] http://www.fiercebiotech.com/press-releases/fda-updates-information-healthcare-professionals-sheet-byetta-exenatide