Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Amarin to slash jobs as generic rivals dull U.S. prospects of heart drug

Published 06/06/2022, 09:34 AM
Updated 06/06/2022, 10:21 AM
© Reuters.

© Reuters.

(Reuters) -Amarin Corp Plc said on Monday it would cut its workforce by 40%, as the drugmaker's fish-oil derived heart drug faces stiff competition from generic rivals in the United States.

About 65% of Amarin (NASDAQ:AMRN)'s U.S. commercial team will be laid off as a result.

"While we continue to see value in branded Vascepa in the U.S., the current operating landscape remains challenging with uncertainty related to future revenue from the U.S. business," Chief Executive Officer Karim Mikhail said in a statement.

Last year, the U.S. Supreme Court declined to hear Amarin's appeal of a patent loss around Vascepa, handing a win to generic drugmakers Hikma Pharmaceuticals (OTC:HKMPY) PLC and Dr. Reddy's Laboratories Ltd.

Amarin had sued Hikma and Dr. Reddy's in 2016, alleging that their proposed generic versions of Vascepa would infringe on the company's patents.

The U.S. patent loss led to a drop in sales of Vascepa in the full year ended December, dragging Amarin's revenue by 4%.

Still, the job cuts and streamlined expenditure will help lower operating costs by about $100 million over the next year, backing Amarin's plans to boost Vascepa's uptake in Europe and other markets.

As of Dec. 31, the company had about 560 full-time employees across 10 countries.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.