Amylin Pharmaceuticals Announces Strategic Restructuring and Workforce Reduction
November 10 2008 - 5:15PM
PR Newswire (US)
Changes will result in over $80 million reduction in 2009 cash
expenditures SAN DIEGO, Nov. 10 /PRNewswire-FirstCall/ -- Amylin
Pharmaceuticals, Inc. (NASDAQ:AMLN) today announced a corporate
restructuring that will reduce its San Diego workforce by
approximately 25 percent, or 340 employees, and reduce anticipated
2009 cash expenditures by more than $80 million. The restructuring
and workforce reduction are part of the Company's business plan to
be cash flow positive by the end of 2010. The Company remains fully
staffed to grow product revenue from BYETTA(R) (exenatide)
injection and SYMLIN(R) (pramlintide acetate) injection and bring
exenatide once weekly to market. Amylin's collaboration with Eli
Lilly and Company on the global development and commercialization
of exenatide is unaffected by the restructuring. "We've made a
difficult, but necessary, decision as a result of factors affecting
our business," said Daniel M. Bradbury, president and chief
executive officer at Amylin Pharmaceuticals, Inc. "Sales revenues
have not met the expectations we had when we scaled up our
organization. Today's actions will bring operating expenses more in
line with revenue and enable us to continue to achieve our business
goals of increasing sales of BYETTA and SYMLIN and bringing
exenatide once weekly to market as quickly as possible." Mr.
Bradbury continued, "The restructuring and workforce reductions
impact administration, operations, and research and development. We
continue to work closely with our partner Lilly to enhance the
effectiveness and efficiency of the commercial organization." The
Company's Ohio facility, where exenatide once weekly is
manufactured, is unaffected by the restructuring. After the
workforce reduction, Amylin's employee base will be 1,800
worldwide, with approximately 900 employees in San Diego. Today's
changes will result in over $100 million reductions in GAAP
operating expenses in 2009 and even greater reductions in 2010. The
planned 2009 reduction includes employee and nonemployee related
costs. As a result of these expense reductions, the Company
estimates the use of cash from operations for 2009 will be reduced
by more than $80 million. The Company will record a restructuring
charge in the fourth quarter, which will primarily include
severance and other costs related to workforce reductions. "We
appreciate the significant contributions of those employees
affected by today's announcement and are grateful for their efforts
and dedication to Amylin's mission," said Mr. Bradbury. The Company
will provide additional details on the restructured organization
and longer-term financial benefits of these changes with the
issuance of its 2009 financial guidance during its 2008 year-end
results conference call in January 2009. About Amylin
Pharmaceuticals Amylin Pharmaceuticals is a biopharmaceutical
company committed to improving lives through the discovery,
development and commercialization of innovative medicines. Amylin
has developed and gained approval for two first-in-class medicines
for diabetes, SYMLIN(R) (pramlintide acetate) injection and
BYETTA(R) (exenatide) injection. Amylin's research and development
activities leverage the Company's expertise in metabolism to
develop potential therapies to treat diabetes and obesity. Amylin
is headquartered in San Diego, California. Further information on
Amylin Pharmaceuticals is available at http://www.amylin.com/. This
press release contains forward-looking statements about Amylin,
which involve risks and uncertainties. The Company's actual results
could differ materially from those discussed due to a number of
risks and uncertainties, including the risk that our revenues may
not grow or ever become sufficient to cover our costs after the
planned restructuring; that our cost reductions may not be as large
as we expect; that our efforts to work more efficiently with Eli
Lilly and Company may not be successful; that our product
candidates, including exenatide once weekly, may not receive
regulatory approval; and inherent scientific, regulatory and other
risks in the drug development and commercialization process. These
and additional risks and uncertainties are described more fully in
the Company's most recently filed SEC documents, including its Form
10-Q. Amylin undertakes no duty to update these forward-looking
statements. DATASOURCE: Amylin Pharmaceuticals, Inc. CONTACT:
Investors, Michael York, +1-858-458-8602, , or Media, Anne
Erickson, +1-858-754-4443, , both of Amylin Pharmaceuticals, Inc.
Web site: http://www.amylin.com/
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