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   DOW JONES NEWSWIRES 
 

Amylin Pharmaceuticals Inc. (AMLN) said as many as two dissident nominees have been elected to its board, giving something of a victory to Eastbourne Capital Management and Carl Icahn, who have been in a contentious dispute with Amylin management.

After Eastbourne said it claimed winning seats, Amylin said it believes no more than two of the five dissident nominees, one nominated by Eastbourne and one by Icahn, were elected to the board.

IVS Associates Inc., the independent election inspector, is expected to issue preliminary results of the vote early next week.

Amylin also said Icahn's proposal to move the company's incorporation to North Dakota from Delaware was defeated.

Amylin shares closed Wednesday at $11.68, up 5.6%. However, in recent late trading, shares are down to $11.64. The stock price has lost about two-thirds of its value since August.

Icahn has protested the steep drop in Amylin's share price that began when news of patient deaths led the U.S. Food and Drug Administration to start working with Amylin and marketing partner Eli Lilly & Co. (LLY) to add stronger warnings about severe pancreatitis to the label of diabetes-drug Byetta.

Amylin has said its board candidates are better suited to exploit the potential of its proposed diabetes drug Exenatide LAR, a new version of Byetta that would be taken once a week rather than injected twice a day. Approval is being sought from the FDA for Exenatide LAR, a potential blockbuster drug.

Icahn and Eastbourne, working separately, each nominated five directors for Amylin's 12-member board earlier this year. Then, fears that gaining a majority of the board would trigger a "poison put" on some of the company's debt led both groups to support three of Eastbourne's nominees and two of Icahn's.

The dissidents got strong support from well-known proxy advisory firms, which hold a major influence on shareholders.

Before the meeting, the Icahn/Eastbourne slate also won the backing of P. Schoenfeld & Associates, which owned 2.1 million Amylin shares as of the end of the first quarter. The hedge-fund company said Amylin has mismanaged cash flow and the marketing of Byetta. It also took issue with the "poison put" provision in Amylin's debt covenants that could force the company to immediately pay off certain debt if a majority of Amylin's board is replaced.

Last month, Amylin reported a narrower first-quarter loss as revenue slid 1.8%. The company said it restructured its Byetta operations with Lilly and amended their collaboration agreement to require a one-year notice for termination without cause, up from the previous six-month notice.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com