Amarin, Vincerx Cut Jobs in Effort to Extend Cash Flow
As the U.S. economy suffers, companies and consumers alike are attempting to find ways to avoid financial damages. Amarin and Vincerx Pharma have unfortunately found themselves in this category, and both have announced decisions to cut back on their employee rosters.
New Jersey-based Amarin announced Monday that a global financial and organizational restructuring would occur amidst the dynamic U.S. economy. The company hopes to lessen operational costs by $100 million over the next year by reducing the U.S. commercial force by 90%, and its focus will pivot towards expanding its presence in Europe.
"We have completely reshaped our investment plan for the future. We have tremendous confidence in our multi-billion dollar revenue opportunity for Vascepa/VAzkepa globally where we remain on track to launch in six markets and receive up to eight reimbursement decisions this year," Amarin President and CEO Karim Mikhail said in a statement. "These comprehensive actions will enable us to better serve patients while creating value for shareholders over the long-term."
The remaining U.S. Amarin employees will continue to support Vascepa (icosapent ethyl), a cardiovascular event preventative.
The company is making additional moves to better position itself for success, including the appointment of a new Chief Financial Officer. Tom Reilly will fulfill the role left empty by Michael Kalb's exit. Reilly is a seasoned leader who brings over two decades of experience to the role. Amarin's Board of Directors is also receiving new members, including Alfonso Zulueta and Erin Enright.
In California, biopharmaceutical company Vincerx has announced its intent to restructure its financial strategies and shift its clinical focus. Full-time employees of Vincerx will be reduced by 33%.
"Reducing our staff was not an easy decision. It was the tremendous effort of our Vincerx colleagues that allowed us to execute efficiently, despite the extreme pressures of the pandemic. I want to sincerely thank every Vincerx colleague who has been impacted by this realignment," said Dr. Ahmed Hamdy, Chief Executive Officer of Vincerx, in a statement.
"Their contributions have, without a doubt, brought us closer to achieving our goals. The realignment announced today will allow us to focus on and invest in the indications and programs we believe will generate the greatest value while reducing our operating expenses—all with the goal of achieving our anticipated key milestones for VIP152 and our bioconjugation platform."
VIP152, a CDK9 inhibitor monotherapy with indications to treat high-grade B-cell lymphoma, high-risk lymphocytic leukemia and high-risk chronic lymphocytic leukemia, is now Vincerx's primary focus. A study evaluating VIP152 in patients with endometrial cancer, triple negative breast cancer and gastrointestinal cancer is currently enrolling participants, while an Investigational New Drug filing is expected later this year for VIP236, a candidate intended to treat solid tumors.
The overall goal is to make current revenues last until 2024 while propelling research and development programs towards regulatory approval. Among the company's development platforms are a small molecule drug program and a bioconjugation platform, each of which is a collaborative effort with Bayer.