Why Are Amarin Shares Plunging Today?

Amarin Corporation plc AMRN shares are down after the company on Tuesday announced that it was restructuring in an effort to reduce operating costs by approximately $40 million annually.

Amarin's refocused strategic priorities and restructuring plan focus on three core areas:

• Amarin will maintain Vascepa as a cost-effective option to generics while reducing force in all U.S. sales force positions and approximately 30% of non-sales roles.
• The company will redesign its commercial infrastructure in Europe to better align with pricing and reimbursement status and commercial potential, and streamline certain cross-geographic functions.
• Amarin will continue to explore additional partnerships.

Amarin also announced preliminary second-quarter earnings, including product revenue of approximately $65 million compared to $85 million in the first quarter of 2023 and the consensus of $80.36 million.

For the quarter, the company had a positive cash flow of $9 million, which includes a $5 million milestone payment following the recent VHTG regulatory approval in China. 

The second quarter-end cash position was $313 million versus $304 million at the end of the first quarter.

Amarin also appointed Patrick Holt as President and CFO, effective immediately. 

Aaron Berg, who served as Interim President and CEO since April 2023, will remain with the company in a senior leadership role.

Price Action: AMRN shares are down 21.7% at $1.13 during the premarket session on the last check Wednesday.