Amarin CFO resigns amid cost-cutting measures, staff reduction of 40%
A year after a Supreme Court opinion put the final nail in the coffin for Amarin’s fish-oil heart drug, the biotech is making some changes to keep its doors open.
The Irish drugmaker announced early Monday that it will be cutting 65% of its US commercial staff, which will effectively result in a 90% drop from pre-pandemic levels and a 40% reduction in overall employee numbers. On top of that, it would also implement certain “reductions and reallocations in overall selling, general and administrative (SG&A) expenses as well as savings related to refining the Company’s R&D strategy to a more focused, stepwise approach for its FDC program.”
Amarin said it would save the company $100 million over the next 12 months while it still works on keeping Vascepa, the brand name of the company’s industrial strength fish oil drug for a variety of cardiovascular indications, alive and commercially viable. CEO Karim Mikhail said it would be focusing on launches of the drug in Europe.
“We value the tremendous contributions of our colleagues — whose dedication to our mission has helped build this Company and enabled us to launch an innovative product that has improved cardiovascular health for millions of patients. These changes, while difficult, are necessary to support our ability to continue bringing VASCEPA/VAZKEPA to patients around the world,” Mikhail added in a statement.
Amarin also announced that CFO Michael Kalb resigned, bringing in Cara Therapeutics’ former CFO Tom Reilly as his replacement. Reilly had also been in finance roles at both Allergan and Novartis. Amarin said in a statement that Kalb will leave the company “to pursue other interests” after a brief transition period.
These measures take place after Amarin’s loss before the Supreme Court last year, after justices refused to hear an appeal from the biotech following a district court ruling that found Amarin’s patents were invalid.
Amarin’s stock price $AMRN rose 4% after the market opened Monday, but is still a far cry from the biotech’s former glory, when it once recorded a stock price of over $20 a share. Today, it is under $2.