Amylin Pharmaceuticals Announces a New Sales Approach to Better Target the Diabetes Market
May 04 2009 - 4:30PM
PR Newswire (US)
Changes Will Result in a 35% Sales Force Reduction and
Approximately $45 Million Annual GAAP Operating Results Benefit SAN
DIEGO, May 4 /PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc.
(NASDAQ:AMLN) today announced a new approach to sales within the
diabetes market. Amylin's existing primary care and specialty sales
forces will merge into a single organization that brings a
specialty approach to endocrinologists and diabetes-focused primary
care physicians. The changes are expected to be implemented in the
next several weeks and will reduce the total number of Amylin sales
representatives by approximately 35 percent, or 200 employees, and
will result in an annualized benefit of approximately $45 million
to GAAP operating results in 2010. The new sales approach is part
of Amylin's continuing efforts to improve the efficiency and
effectiveness of exenatide alliance operations with partner Eli
Lilly and Company, and to maximize the value of the Company's
current and future portfolio of first-in-class diabetes products.
The changes to Amylin's field sales organization will be
coordinated and aligned with the continuing exenatide sales efforts
of Lilly. Amylin's resulting field sales organization will include
approximately 325 sales representatives focused on endocrinologists
and other physicians that treat significant numbers of diabetes
patients. Lilly will continue their efforts within the
endocrinology and larger primary care prescriber market to support
BYETTA(R) (exenatide) injection. Overall, these changes will better
position the companies for the anticipated launch of exenatide once
weekly. "This new, more focused approach to sales optimizes
Amylin's sales organization for our portfolio today and in the
future, and will enable us to improve the quality of our
interactions with core prescribers through more efficient and
frequent interactions. These changes build on Amylin's scientific
strength, and leverage Lilly's expertise and reach with primary
care prescribers, so that we are well positioned to address the
information needs of the complex diabetes market," said Daniel M.
Bradbury, president and chief executive officer at Amylin
Pharmaceuticals. "Today's actions are in line with our stated goal
of achieving positive operating cash flow by the end of 2010, while
continuing to position the company to increase sales of BYETTA and
SYMLIN and bring exenatide once weekly to market as quickly as
possible." Mr. Bradbury continued, "We appreciate the significant
contributions of field sales employees who will be affected by
today's announcement and are grateful for their efforts and
dedication to Amylin's mission." The sales force changes will
result in an annualized benefit of approximately $45 million in
GAAP operating results in 2010, and a partial year benefit of
approximately $20 million in 2009, which includes reductions in
field sales staff and expenses, partially offset by additional
cost-sharing for Lilly's primary care sales efforts. As a result of
these expense reductions, which are primarily cash expenses, the
Company estimates that total GAAP operating expenses for 2009 will
now be at the lower end of the previously stated guidance range of
$600 million to $625 million, and GAAP operating loss will also be
at the lower end of the previously stated guidance range of $175
million to $200 million. This guidance for GAAP operating loss
excludes a restructuring charge, estimated to be approximately $13
to $15 million, which the Company will record in the second
quarter, consisting of primarily severance and other
employee-related costs. 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. Actual
results could differ materially from those discussed or implied in
this press release due to a number of risks and uncertainties,
including the risk that BYETTA, SYMLIN and/or exenatide once weekly
and the revenues generated from BYETTA and/or SYMLIN may be
affected by competition; unexpected new data; safety and technical
issues; clinical trials not confirming previous results;
pre-clinical trials not predicting future results; New Drug
Applications and label expansion requests not being submitted in a
timely manner or receiving regulatory approval; the sales force
changes not producing the operating loss benefits we expect;
financial guidance we provide may not be accurate; the restructured
operations for exenatide and the new sales approach mentioned in
this press release not producing the results we expect; or
manufacturing and supply issues. The potential for BYETTA, SYMLIN
and/or exenatide once weekly may also be affected by government and
commercial reimbursement and pricing decisions, the pace of market
acceptance, or scientific, regulatory and other issues and risks
inherent in the commercialization of pharmaceutical products. These
and additional risks and uncertainties are described more fully in
Amylin's most recent SEC filings including their Annual Report on
Form 10-K. Amylin undertakes no duty to update these
forward-looking statements. DATASOURCE: Amylin Pharmaceuticals,
Inc. CONTACT: Investors, Michael York, +1-858-458-8602, , or Media,
Alice Izzo, +1-858-642-7272, , both of Amylin Pharmaceuticals, Inc.
Web Site: http://www.amylin.com/
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