Lilly-Amylin diabetes drug approved in EU

NEW YORK (CNNMoney.com) -- European regulators approved Byetta, a diabetes drug from Eli Lilly & Co. and Amylin Pharmaceuticals, the companies announced Tuesday.

Byetta, a treatment for type 2, the most common type of diabetes, has been on the market in the U.S. since 2005. With the newly-announced approval from the European Commission, the companies expect to launch Byetta in Europe in 2007.

Type 2 diabetes, which is often brought on through unhealthy lifestyles, is an increasing problem in the U.S. and Europe. Byetta, an injectable drug that improves blood-sugar levels, is considered by some analysts to be a potential blockbuster.

Sales for Byetta totaled nearly $300 million in the first nine months of 2006. The profits are split between Indianapolis-based Lilly (down $0.17 to $54.38, Charts), the seventh-largest U.S. drugmaker, and Amylin (down $0.59 to $42.86, Charts), a San Diego-based biotech.

Byetta, also known as exenatide, is based on a compound that occurs naturally in the saliva of the Gila monster, a rare and venomous lizard that dwells in Mexico and the American Southwest.

In October, the FDA approved Merck's (down $0.49 to $44.57, Charts) diabetes drug Januvia, which controls blood-sugar levels in type 2 diabetics. Januvia is expected to eventually compete with Novartis' (down $0.13 to $58.16, Charts) experimental drug Galvus. Analysts consider both pills to be potential blockbusters.

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