(Adds Merck plans to meet with FDA, byline)

By Ransdell Pierson

NEW YORK, May 5 (Reuters) - Merck & Co Inc (MRK.N: Quote, Profile, Research) said on Monday it would eliminate another 1,200 U.S. sales jobs, accelerating an ongoing cost-cutting program following rejection last week by U.S. regulators of its Cordaptive cholesterol drug.

Merck, whose earnings have been hurt by disappointing sales of its Vytorin cholesterol fighter and generic competition for its older Zocor cholesterol drug, said the job cuts would be completed by late July and would not disrupt service to its customers.

Merck spokeswoman Amy Rose said the targeted jobs, representing 15 percent of Merck's U.S. sales force, follow elimination of 400 other U.S. sales jobs since early 2007.

"That represents a 20 percent reduction of our sales force," Rose said, referring to the combined cuts of 1,600 positions since early last year.

The job cuts are part of a global restructuring plan announced in late 2005, meant to generate a total of $4.5 billion to $5 billion in savings through 2010, Rose said.

The U.S. Food and Drug Administration last week issued a not-approvable letter for Cordaptive, prompting industry analysts to predict its approval could be delayed for five years or more, or even signal the product's demise.

Merck, which has not disclosed why the FDA rejected the drug, has said it plans to meet with the agency to better understand its concerns.