On the same day, Dublin-based Amarin has unveiled both a company re-org and a new CEO.
While the company assures that it continues to generate revenue in the U.S. and "maintains a strong cash position," it has launched an organizational restructuring program to "right-size and strengthen the company to enhance shareholder value." Amarin expects these actions to reduce operating costs by approximately $40 million annually.
Amarin's refocused strategic priorities and restructuring plan focuses on three core areas:
- A streamlined U.S. model, maintaining the company's only approved drug, Vascepa, as a cost-effective option to generics while implementing a reduction in U.S. sales positions and approximately 30% of non-sales roles
- Redesigned its commercial infrastructure in Europe to better align with pricing and reimbursement status, commercial potential and progress to date.
- Generating revenue from its partnerships in key international markets, including Canada, MENA, China and Australia/New Zealand
At the same time, Amarin has appointed Patrick Holt as president and CEO, effective immediately and replacing interim leader, Aaron Berg, who will remain at the company as senior leadership. Holt most recently served as president of Cordis, Cardinal Health’s global interventional cardiovascular business.
This is not the first restructuring for Amarin. Last year, the struggling company cut its workforce in the U.S. by 65% in a restructuring plan designed to reduce operating costs by approximately $100 million over the next year.
With the pharma industry testing the waters with prescription omega-3 treatments, investors had high hopes for Amarin's Vascepa, especially following the drug's 2019 approval expansion, which made the treatment the first and only drug approved to reduce cardiovascular risk among patients with elevated triglyceride levels — and greatly widening the treatment population.
However, after a huge first-quarter revenue bump, Amarin hit a snag this 2020, losing a patent trial against two generic drugmakers. This ruling subsequently cleared the way for Hikma Pharma’s approval for a generic version of Vascepa. Amarin found itself in a sea of litigation challenging the patent decisions, but ultimately three generic versions of the drug have entered the U.S. market
Now, armed with a more streamlined model and a new CEO, Amarin is hoping to right the ship.
"Decisive action is needed to realize Amarin’s full potential, and alongside the entire Amarin team, I am committed to realizing the opportunities inherent in the business to maximize value for patients, physicians, payors and shareholders," said Holt.