DOW JONES NEWSWIRES
Amylin Pharmaceuticals Inc. (AMLN) will trim its sales team by
about 35%, or 200 employees, as it looks to streamline its diabetes
sales effort following the company's alliance with Eli Lilly &
Co. (LLY).
The pharmaceutical company said the job cuts would result in
annual savings of about $45 million in 2010, with a partial benefit
of about $20 million expected this year.
Its resulting field sales organization will include about 325
representatives that will focus on selling its diabetes products.
Pharmaceutical companies have been trimming their sales teams amid
the drop in demand for their products.
"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," said Chief Executive Daniel M. Bradbury. He added the
actions were in line with the company's goal to achieve positive
operational cash flow by the end of 2010, while continuing to
increase sales of Byetta, Amylin's blockbuster diabetes drug, and
Symlin.
As a result of the reductions, Amylin said it expects total
operating expenses for 2009 to be on the low end of its previous
range of $600 million to $625 million, and its fully reported
operating loss will be on the low end of its $175 million to $200
million view.
The operating loss target excludes a restructuring charge of
about $13 million to $15 million, which the company said it would
record in the second quarter amid severance and other
employee-related costs.
Last year, the company trimmed its work force by 16%, but that
news was greeted by muted enthusiasm, with some analysts predicting
more cuts were necessary.
Shares were up 0.4% at $11.62 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com