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Amarin Corporation Plc (AMRN)
NASDAQ:AMRN
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Amarin
(NASDAQ:AMRN)
42Neutral
Positive Factors
Financial Management
Amarin's tighter OpEx management with ~$43M in 2Q24 (~24% Y/Y reduction vs. 2Q23) and achieving ~$50M OpEx savings on an annualized basis since July 2023, exceeding their prior goal of ~$40M in OpEx savings.
Market Expansion
Commercial launch progress for Vascepa in China in the CV risk reduction indication via partner Eddingpharm could drive future growth.
Patent Protection
EU patent protection extends exclusivity to 2039, which could enhance the stock's value.
Negative Factors
Competition and Pricing Pressure
US Vascepa still faces growing competition and pricing pressure from at least 8 generics, compressing its gross margins.
Loss of Exclusive Accounts
A large US national pharmacy benefit manager informed Amarin that it will no longer cover Vascepa as the exclusive icosapent ethyl product for its commercial national formularies, affecting a significant portion of the US Vascepa business.
Market Access Challenges
Vazkepa's EU launch remains slower than expected due to continued market access challenges, which is an overhang on the stock.
Amarin (AMRN) vs. S&P 500 (SPY)
Market Cap
$164.55M
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth-25.21%
EPS Growth25.06%
CountryUS
Employees275
SectorHealthcare
Sector Strength78
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.10
Shares Outstanding411,338,130
10 Day Avg. Volume2,942,532
30 Day Avg. Volume1,587,592
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.68
Price to Cash Flow (P/CF)-17.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Amarin Business Overview & Revenue Model
Company DescriptionAmarin Corp. Plc is a biopharmaceutical company, which focuses on the commercialization and development of therapeutics for cardiovascular health. Its product development program leverages its experience in lipid science and the potential therapeutic benefits of polyunsaturated fatty acids. It has developed and markets Vascepa capsules through wholesale. The company was founded by Geoffrey W. Guy on March 1, 1989 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyAmarin Corporation generates revenue primarily through the sale of its pharmaceutical product, Vascepa. The company targets prescribing physicians, healthcare professionals, and healthcare facilities to promote and distribute Vascepa. Revenue is generated from direct sales to wholesalers, who then distribute the medication to pharmacies and healthcare providers. Amarin also seeks to expand its market reach through strategic partnerships and licensing agreements, which may include collaborations with other pharmaceutical companies to promote and distribute Vascepa in international markets. Additionally, the company's financial performance is influenced by regulatory approvals, market demand, pricing strategies, and its ability to protect its intellectual property through patents.
Amarin Financial Statement Overview
Summary
Amarin's financial performance is challenged by declining revenue and profitability, despite a stable balance sheet with low leverage. Negative cash flows and ongoing losses threaten long-term viability.Income Statement
Amarin's income statement shows a declining trend in revenue and profitability. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 55.5%, which is reasonable. However, the company is experiencing negative net profit margins, indicating ongoing losses. The revenue growth rate is negative, reflecting a significant decline from previous years, impacting the overall financial health.45
Neutral
Balance Sheet
The balance sheet reveals a stable equity position, with a debt-to-equity ratio of approximately 0.0155 for TTM, indicating low leverage. However, the return on equity is negative due to losses, impacting shareholder value. The equity ratio is approximately 70.8%, suggesting a strong equity base relative to total assets.55
Neutral
Cash Flow
Amarin's cash flow statement shows challenges in generating positive free cash flow, with a negative free cash flow growth rate. The operating cash flow to net income ratio is negative due to operating losses. The cash reserves remain substantial, but continued cash burn could pose a risk if not addressed.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 475.60M | 306.91M | 369.19M | 583.19M | 614.06M | 429.75M | Gross Profit |
| 341.70M | 165.54M | 242.48M | 461.86M | 482.62M | 333.74M | EBIT |
| -88.08M | -67.59M | -92.34M | 22.28M | -19.66M | -24.28M | EBITDA |
| -61.10M | -50.90M | -100.65M | 14.28M | -12.71M | -15.06M | Net Income Common Stockholders |
| -99.97M | -59.11M | -105.80M | 7.73M | -18.00M | -22.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 249.23M | 320.66M | 309.36M | 454.13M | 500.93M | 644.59M | Total Assets |
| 385.71M | 831.68M | 886.18M | 1.07B | 966.02M | 882.21M | Total Debt |
| 80.35M | 8.74M | 10.02M | 8.58M | 9.15M | 59.57M | Net Debt |
| -168.88M | -190.51M | -207.65M | -210.88M | -177.81M | -585.01M | Total Liabilities |
| 233.38M | 279.59M | 290.85M | 400.97M | 338.52M | 273.95M | Stockholders Equity |
| 152.33M | 552.10M | 595.33M | 667.10M | 627.50M | 608.26M |
| Cash Flow | Free Cash Flow | ||||
| -196.21M | 6.35M | -180.69M | ― | -22.00M | -11.84M | Operating Cash Flow |
| -196.21M | 6.88M | -180.09M | -66.54M | -21.75M | -9.37M | Investing Cash Flow |
| 97.76M | -25.52M | 175.29M | 104.10M | -376.96M | -2.48M | Financing Cash Flow |
| -567.00K | 230.00K | -379.00K | -5.07M | -58.91M | 409.61M |
Amarin Technical Analysis
Negative
0.41
Price Trends
0.55
Negative
0.53
Negative
0.61
Negative
Market Momentum
-0.03
Positive
27.84
Positive
28.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRN, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.55, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 27.84 is Positive, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMRN.
Amarin Risk Analysis
Amarin disclosed 61 risk factors in its most recent earnings report. Amarin reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amarin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
AMRN
Amarin
0.41
-0.41
-50.00%
ITCI
Intra-Cellular Therapies
131.36
66.79
103.44%
Amarin Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -12.77% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Amarin demonstrated strong financial foundation, global expansion progress, and effective cost management, significant challenges persist in the U.S. market due to generic competition, resulting in a revenue decline and increased net loss. The commitment to research and development offers potential future growth opportunities.Highlights
Strong Financial Foundation
Amarin reported 2024 revenues of over $200 million and ended the year with a cash position of $294 million and no debt, providing a long runway for the company.
VASCEPA's Global Expansion
VASCEPA has been launched in over 20 markets globally with nine partnerships in place, and secured regulatory approvals in 49 markets around the world.
European Market Progress
Secured pricing and reimbursement in 10 European markets and achieved a $2.5 million increase in European product revenue year-over-year, driven by contributions from Spain and the UK.
Advancements in Research and Development
Supported more than 500 publications on icosapent ethyl, with 45 new publications in 2024, and secured more than 50 clinical guidelines and scientific statements globally.
Cost Management and Cash Preservation
Reduced year-over-year operating expenses by 26% and maintained a stable cash position with only a 5% decline since the end of 2022.
Lowlights
U.S. Revenue Decline
U.S. product revenue declined to $44.2 million in Q4 2024 from $64.9 million in Q4 2023, primarily due to generic competition and a decrease in volume.
Impact of U.S. Generic Competition
The decline in net selling price in the U.S. resulted in a gross margin reduction from 58% to 41% year-over-year.
Net Loss Increase
Reported a GAAP net loss of $48.6 million in Q4 2024 compared to a GAAP net loss of $5.8 million in Q4 2023, reflecting the impact of U.S. generic market and non-cash inventory restructuring charges.
CVS Coverage Loss Impact
The shift of CVS commercial from exclusive to not covered significantly impacted U.S. revenue and is expected to affect year-over-year comparisons in the first two quarters of 2025.
Company Guidance
In the conference call discussing Amarin Corporation's financial results for the fourth quarter and full year 2024, the company highlighted its strategic plans and achievements. Amarin reported a strong financial position with revenues exceeding $200 million in 2024 and a cash reserve of nearly $300 million, without any debt. The company has successfully secured regulatory approvals for its product, VASCEPA, in 49 markets globally and launched in over 20 markets. During the fourth quarter of 2024, Amarin's total net revenue was $74.7 million, with U.S. product revenue contributing $44.2 million, a decline from the previous year due to generic competition and decreased volume. European product revenue increased by $2.5 million from the prior year, reaching $4 million, primarily driven by growth in Spain and the UK. The company is also focusing on maintaining its NASDAQ listing by initiating a ratio change to its American Depositary Shares (ADS) program. Moving forward, Amarin aims to maintain its financial stability, expand VASCEPA's global reach, and continue its investment in research to maximize shareholder value and address cardiovascular disease, the leading cause of death worldwide.}}}Amarin Corporate Events
Delistings and Listing ChangesStock SplitFinancial Disclosures
Amarin Announces 1-for-20 Reverse Stock Split
Neutral
Mar 12, 2025
On March 12, 2025, Amarin announced a 1-for-20 reverse split of its American depositary shares (ADSs) to maintain its Nasdaq listing, effective around April 11, 2025. This move is expected to proportionally increase the trading price of its ADSs, although no assurance is given that the price will be 20 times higher post-split. In 2024, Amarin reported $62.3 million in fourth-quarter revenue, a 17% decrease from the previous year, primarily due to U.S. generic competition. Despite this, the company made significant progress in expanding its VASCEPA/VAZKEPA franchise globally, securing reimbursements in Italy and Austria, and advancing commercialization efforts in other markets.
Executive/Board Changes
Amarin Appoints Peter Fishman as New CFO
Neutral
Dec 18, 2024
Amarin Corporation has appointed Peter Fishman as its new Chief Financial Officer, effective immediately. Fishman, who has been with the company since 2019, brings extensive experience in finance and has played a crucial role in Amarin’s financial strategies and transactions. His appointment is expected to support the company’s financial and business strategy moving forward.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.