(Reuters) – Drugmaker Amarin (NASDAQ:) Corp Plc said on Monday it would reduce its workforce by 40% as part of a company-wide restructuring and cost-saving plan.
That will lower operating costs by about $100 million over the next year, the company said, sending its shares up 5.3% before the bell.
About 65% of Amarin’s U.S. commercial team will be laid off as the company’s fish-oil derived heart drug Vascepa faces stiff competition from generic brands in the country.
“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.
The planned reduction in operating costs will enable Amarin to invest in European market launches and in the global expansion of Vascepa, it said.
As of Dec. 31, the company had about 560 full-time employees across 10 countries.