Amylin 25%
>>Amylin Pharmaceuticals Announces Strategic Restructuring and Workforce Reduction
Monday November 10, 5:15 pm ET
Changes will result in over $80 million reduction in 2009 cash expenditures
SAN DIEGO, Nov. 10 /PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc. (Nasdaq: AMLN - News) 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® (exenatide) injection and SYMLIN® (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.<<
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Needed, I guess, and it sucks for the employees; hoping they didn't prune R&D back to far. If so, they'll be looking to outlicense stuff earlier than I would have previously guessed. Stock not reacting a whole lot after hours.
Cheers, Tuck |
