UPDATE 2-BioCryst posts Q3 loss, cuts 20 percent of jobs

* Cuts 20 pct of jobs

* Q3 loss/shr 24 cents narrower than estimates by a cent

* Revenue $8.9 mln beats expectations (Adds details, updates stock movement)

Oct 31 (Reuters) - BioCryst Pharmaceuticals Inc (BCRX.O) reported a narrower quarterly loss as a drop in revenue was offset by lower costs, and said it had implemented strategic initiatives, including a 20 percent reduction in its workforce.

The company, which is developing drugs for the treatment of cancer, autoimmune diseases and viral infections, said it plans to focus its resources on the late-stage clinical trials and the "most promising" pre-clinical compounds.

BioCryst currently has three drugs in mid- or late-stage clinical trials.

Third-quarter revenue of $8.9 million beat estimates of $6.3 million but was down from $20.5 million a year earlier, mostly because of lower revenue from a contract with the U.S. Department of Health and Human Services.

The contract is related to the company's experimental influenza drug peramivir.

BioCryst also said it expects 2008 cash burn at the lower end of its prior view of $25 million to $30 million.

Shares of the company were unchanged at $1.65 in morning trade on Nasdaq.

For the press release, please click [ID:nPnNY43031] . For the alerts, please click [ID:nWNAB5775] (Reporting by Esha Dey in Bangalore; Editing by Amitha Rajan)