Icahn Drops Amylin Lawsuit

Financier Carl Icahn said he has voluntarily dismissed a lawsuit filed against Amylin Pharmaceuticals after talking with the biotech company's chief executive, Daniel Bradbury, sending Amylin's shares up over 2%.

Icahn, whose 8.94% stake has made him Amylin's third-largest shareholder, filed the suit earlier this month after the maker of diabetes drugs Byetta and Bydureon was reported to have rejected a $3.5 billion unsolicited takeover bid from Bristol-Myers Squibb.

Sources have told Reuters that Amylin started reaching out to potential buyers last week and has hired Credit Suisse and Goldman Sachs as its financial advisors and Skadden Arps as its legal adviser.

Icahn said in a regulatory filing on Wednesday that he "continues to strongly believe that the company should be sold at this time."

Analysts have said several drug companies could be potential buyers for Amylin, including AstraZeneca, Merck & Co and Takeda Pharmaceutical.

Amylin said it was pleased that the lawsuit had been withdrawn. "Amylin's Board of Directors is fully aware of its fiduciary duties and is committed to always acting in the best interests of stockholders," the company said in a statement.

"The Board continually considers all options available and is relentlessly focused on creating the greatest value for our stockholders."

The lawsuit had sought to block enforcement of a bylaw that prevented the billionaire investor from launching a proxy fight.