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