UPDATE 1-Goldman Sachs adds Amylin to conviction buy list

(Recasts; changes source, adds details, share movement)

July 22 (Reuters) - Goldman Sachs replaced Gilead Sciences Inc (GILD.O) with Amylin Pharmaceuticals Inc (AMLN.O) on its conviction buy list, citing higher upside in Amylin's stock.

The investment bank said Amylin also stood to benefit from diabetes drug Byetta, which is co-marketed with Eli Lilly and Co (LLY.N).

Goldman has a $46 price target on Amylin's stock and $59 on Gilead stock. It has a "buy" rating on both stocks.

Shares of both Amylin and Gilead were up nearly 3 percent at $27.27 and $50.94, respectively, in morning trade on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Anil D'Silva)