"After its run to a new all-time high last month, Amylin (NASDAQ: AMLN) appears to be undergoing some upper level consolidation," notes biotech specialist John McCamant.
Following a presentation by the firm's CEO at a biotech conference, the editor of The Medical Technology Stock Letter concludes, "Management has made a compelling case why the stock's current trading range should be just a weigh station on the way to an even loftier valuation."
The advisor explains, "At the Newsmakers in the Biotech Industry Conference -- which took place September 6 – CEO Dan Bradbury discussed the still unrealized growth potential of both Byetta and Symlin."
Regarding Byetta, he notes that Mr. Bradbury indicated that over 85% of diabetes specialists have prescribed the drug at this point, we are now starting to see prescription growth among primary care physicians."
On the Symlin front, Mr. Bradbury added, "Over half of the prescriptions written for it have been for the type 2 diabetes patient population. We would expect to see additional penetration of the type 1 diabetes market."
McCamant suggests, "Though much smaller than the type 2 diabetes market, additional growth through increased usage by type 1 patients would be meaningful (on a percentage basis). Approval of the new pen injection delivery vehicle should further facilitate this process."
McCamant states, "Mr. Bradbury highlighted the reasons for why we are so excited about what lies in store for this potential blockbuster diabetes treatment.
"This included a brief discussion of the highly impressive data from the 15-week Phase 2 testing, as well as the pharmacokinetic profile of the drug candidate, which could ultimately lead to even better blood sugar control and more robust weight loss than Byetta is currently producing.
"Additionally, we were reminded that we are in store for an exciting finish to the year due not only to the soon-to-be-released results on exenatide LAR, but also because we should get to see a good chunk of data from within their obesity program for pramlintide. McCamant rates AMLN a buy under $45."
Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.
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