Amarin Corp. plc (Nasdaq:AMRN), a biopharmaceutical company focused on the commercialization and development of therapeutics to improve cardiovascular health, announced plans to reduce operating expenses by eliminating approximately 50 percent of its staff positions worldwide following the recent recommendation of the U.S. Food and Drug Administration (FDA) Endocrinologic and Metabolic Drugs Advisory Committee against the potential Vascepa® (icosapent ethyl) label expansion.
Amarin will continue its dialogue with FDA regarding the ANCHOR data. Given the outcome of the advisory committee meeting, Amarin feels this shift in staffing is the appropriate corporate action. Amarin is grateful to all employees for their significant efforts and contributions to the organization.
As part of the reduction in staffing the company will retain approximately half of its highest performing sales professionals in targeted geographical areas and pursue continued prescription growth of Vascepa in the current approved indication. This optimized team will cover the target base of physicians responsible for the vast majority of Vascepa prescription volume and growth since its launch in early 2013. With this optimization and resulting target base coverage, Amarin anticipates continued Vascepa revenue growth over time.
As of Sept. 30, 2013, Amarin had cash, cash equivalents of approximately $226 million. Amarin anticipates approximately $3 million in restructuring expense in association with this reduction in staffing. The company currently expects its cash burn for 2014 to be less than $80 million. The company has no plans for raising additional capital at this time. Amarin intends to continue its evaluation of priorities, opportunities and savings opportunities, including clinical trial costs. The company plans to provide additional details of its future spending and operational expectations in connection with its upcoming quarterly report.