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Amarin cuts staff in half after an FDA committee rejects its product label expansion.
Amarin, a biopharmaceutical company focused on the commercialization and development of therapeutics to improve cardiovascular health, plans to reduce operating expenses by eliminating approximately 50% of its staff positions worldwide. The staff reduction follows the recent recommendation of the FDA Endocrinologic and Metabolic Drugs Advisory Committee against the potential Vascepa (icosapent ethyl) label expansion, the company announced in a press release. Amarin is headquartered in Dublin, Ireland, and the company’s US office is located in Bedminster, N.J.
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.
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 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.