Amylin Pharmaceuticals Inc. (AMLN) filed Quarterly Report for the period ended 2011-03-31.
Amylin Pharmaceuticals Inc. has a market cap of $1.91 billion; its shares were traded at around $13.21 with and P/S ratio of 2.8.
Highlight of Business Operations:At March 31, 2011, we had approximately $460.2 million in cash, cash equivalents and short-term investments and $15 million of restricted cash. Our $200 million of 2.5% convertible senior notes were repaid subsequent to the end of the quarter on April 15, 2011. During the first quarter of 2011 we notified Lilly of our intent to draw a $165 million line of credit available from Lilly. These funds may be drawn in May of 2011, and, if drawn could be used for general corporate purposes and the loan and any unpaid accrued interest would be due in May 2014. Although we have yet to consistently generate positive operating cash flows, we intend to continue to improve our operating results and reduce our use of cash for operating activities in 2011 compared to 2010. Refer to the discussions under the headings Liquidity and Capital Resources below and Cautionary Factors That May Affect Future Results in Part I, Item 1A for further discussion regarding our anticipated future capital requirements.
At March 31, 2011, we had approximately $460.2 million in cash, cash equivalents and short-term investments, compared to $442.7 million at December 31, 2010. Our $200 million of 2.5% convertible senior notes were repaid subsequent to the end of the quarter on April 15, 2011 and we have notified Lilly of our intent to draw a $165 million line of credit available from Lilly described below. We have demonstrated strong financial discipline over the last few years and we are committed to continuing to manage our expenses closely in-line with expected revenues. We will continue to aggressively manage our expenses to minimize the amount of cash we use for operating activities. We continue to evaluate opportunities to refinance existing indebtedness or raise additional
Our operating activities provided cash of $23.1 million and used cash of $38.5 million for our operating activities in the three months ended March 31, 2011 and 2010, respectively. Our cash provided by operating activities in the three months ended March 31, 2011 included cash provided due to decreases in accounts receivable, inventories and other current assets of $2.7 million, $9.1 million and $13.6 million, respectively, an increase in deferred collaborative profit sharing of $2.8 million, offset by a decrease in accounts payable and accrued liabilities of $4.2 million. The decrease in accounts receivable is primarily due to lower product sales. The decrease in inventories largely reflects reductions in raw materials and finished goods inventory due to the timing and volume of production for BYETTA and SYMLIN. The decrease in other current assets is due to the receipt of a $10 million milestone payment from Lilly resulting from the December 2010 launch of BYETTA in Japan and a decrease in prepaid expenses. The increase in deferred collaborative profit sharing reflects payments due to us from Lilly for its 60% share of the capital expenditures we have made for the BYDUREON pen device. The improvement in operating cash flows for the three months ended March 31, 2011 compared to the three months ended March 31, 2010 is largely due to improvements in cash flows from working capital changes resulting from our efforts to manage our expenses.
Our investing activities provided cash of $56.2 million and $53.1 million for the three months ended March 31, 2011 and 2010, respectively. Investing activities in both quarters consisted primarily of purchases and sales of short-term investments and purchases of property, plant and equipment, net. Purchases of property, plant and equipment, net decreased to $10.0 million for the three months ended March 31, 2011 from $27.5 million for the three months ended March 31, 2010. The decrease in purchases of property reflects a reduction in purchases associated with our BYDUREON manufacturing facility, offset by costs incurred in connection with the BYDUREON pen device. Through March 31, 2011, we had expended $631.5 million associated with the construction of the BYDUREON manufacturing facility, which includes costs associated with the construction of the facility, purchase and installation of equipment and capitalized labor and materials required to validate the facility. The initial capital investment for the pen is expected to be $216.0 million over the next few years, which will be funded 60% by Lilly and 40% by us. Through March 31, 2011 we have incurred $174.0 million in capital expenditures associated with the BYDUREON pen device and incurred total combined capital expenditures for the manufacturing facility and the pen device of $805.5 million. We have billed Lilly $90.7 million for its share of expenditures for the pen device, of which $90.0 million has been received to date, of which $3.5 million is included in cash used for operating activities as discussed above. Additionally, we expect that our use of cash for capital expenditures will decrease in 2011 as compared to 2010 and will be principally focused on strategically investing in exenatide life cycle management, of which Lilly shares 60% of the costs. We will continue to evaluate potential additional investments in our Ohio manufacturing facility during the product lifecycle for BYDUREON, if approved.
Financing activities provided cash of $4.3 million and used cash of $0.7 million for the three months ended March 31, 2011 and 2010, respectively. Financing activities in the three months ended March 31, 2011 include proceeds of $4.3 million from the exercise of stock options and proceeds from our employee stock purchase plan. Financing activities for the three months ended March 31, 2010 include $7.8 million in principal payments of our term loan, partially offset by proceeds of $7.2 million from the exercise of stock options and proceeds from our employee stock purchase plan.
At March 31, 2011, we had $200 million in aggregate principal amount of convertible senior notes due April 15, 2011, or the 2004 Notes, and $575 million of the convertible senior notes due June 15, 2014, or the 2007 Notes, outstanding. The 2004 Notes were repaid on April 15, 2011. The 2007 Notes are currently convertible into a total of up to 9.4 million shares of our common stock at approximately $61.07 per share and are not redeemable at our option. As of March 31, 2011 we had $10.4 million of standby letters of credit outstanding which are secured by $15 million of restricted cash pursuant to a Line of Credit and Cash Collateral Agreement entered into in December 2010.
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