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Amarin Corporation Plc (AMRN)
NASDAQ:AMRN
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Amarin
(NASDAQ:AMRN)
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Rating:48Neutral
Price Target:
$16.00
▲(7.10% Upside)
Action:ReiteratedDate:03/03/26
The score is held down primarily by weak financial performance (shrinking revenue, ongoing losses, and inconsistent/weak cash flow) and bearish technicals (below key moving averages with negative MACD). The latest earnings call provides partial support via cost-cutting progress, positive operating cash flow in 2025, strong liquidity/no debt, and partnership upside, but revenue pressure and variability keep overall risk elevated.
Positive Factors
Strong liquidity and low leverage
Amarin's ample cash, no debt and sizable working capital provide multi-quarter runway to fund operations, complete restructuring, support regulatory filings and partner launches. This reduces near-term insolvency risk and gives management optionality to execute long-term commercialization plans.
Realized structural cost reductions
Meaningful and executable cost savings materially shrink the company's fixed cost base, narrowing operating losses and lowering the breakeven threshold. Realizing run-rate savings by mid-2026 improves durability of margins and extends runway even if top-line recovery is gradual.
Strategic international partnership (Recordati)
The Recordati license shifts commercialization costs and execution risk for many markets to a partner while providing immediate cash and milestone upside. This diversifies revenue sources beyond the U.S., leverages partner commercial scale, and supports a lower-capex international expansion model.
Negative Factors
Multi-year revenue decline
A sustained drop in sales over several years reflects structural demand erosion and reduced scale for the core product. Persistent revenue contraction weakens pricing leverage, reduces R&D and commercial flexibility, and makes it harder to offset rising competition despite cost cuts.
Inconsistent and weak cash generation
Volatile and recently negative free cash flow limits self-funding capacity for launches, litigation or unexpected setbacks. Even with cash on hand, unreliable cash conversion raises reliance on reserves or partners and elevates execution risk if milestone receipts or cost savings are delayed.
U.S. pricing and exclusivity risks
The U.S. franchise faces structural exposure to generic entrants and payer contracting that can erode net selling price and volumes. Reliance on managed-care exclusivity creates binary outcomes: losing coverage or discounts materially compress revenues, undermining long-term recovery plans.
Amarin (AMRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$310.91M
Dividend YieldN/A
Average Volume (3M)86.89K
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth-6.31%
EPS Growth-115.62%
CountryUS
Employees275
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.00
Shares Outstanding20,803,957
10 Day Avg. Volume87,212
30 Day Avg. Volume86,887
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)12.61
Price to Sales (P/S)31.70
P/FCF Ratio859.05
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit1.52
Enterprise Value/Ebitda-11.19
Forecast
1Y Price Target
$12.00Price Target Upside-19.68% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$160.19M
Amarin Business Overview & Revenue Model
Company DescriptionAmarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States, Germany, Canada, Lebanon, and the United Arab Emirates. Its lead product is VASCEPA, a prescription-only omega-3 fatty acid product, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. The company sells its products principally to wholesalers and specialty pharmacy providers. It has a collaboration with Mochida Pharmaceutical Co., Ltd. to develop and commercialize drug products and indications based on the active pharmaceutical ingredient in Vascepa, the omega-3 acid, and eicosapentaenoic acid. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was incorporated in 1989 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyAmarin makes money primarily by selling its prescription product icosapent ethyl under the brand names VASCEPA (U.S.) and VAZKEPA (in certain non-U.S. markets). Revenue is generated when wholesalers, pharmacies, hospitals, and other customers purchase product supply, with patient access typically facilitated through reimbursement by private insurance, government programs, or patient out-of-pocket payments. The company’s earnings are therefore driven mainly by net product sales, which reflect gross sales less typical deductions such as rebates, chargebacks, discounts, returns, and allowances. Outside the U.S., Amarin has pursued a mix of direct commercialization and commercialization through partners or distributors in some markets; where partners are used, Amarin’s revenue can include product supply sales to those partners and/or other collaboration-related income as defined by the underlying agreements. Any additional material revenue streams beyond product sales (e.g., licensing milestones or royalties) are not specified here; null.
Amarin Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational progress: sizable cost reductions, a narrowed operating loss, positive operating cash flow, a strong cash position and a strategic Recordati partnership with immediate $25 million upfront consideration and substantial milestone potential. These positives were tempered by a notable year-over-year revenue decline (approx. 21% in Q4), a large drop in rest-of-world revenue driven by prior-year stocking orders, ongoing U.S. pricing pressure in a generic environment, and near-term revenue variability as the company transitions to a partnered international model. Management expects full run-rate savings by mid-2026 and reiterated confidence in defending U.S. exclusivity and expanding internationally through partners, making the net tone constructive but cautious.Q4-2025 Updates
Positive Updates
Significant Operating Expense Reductions
Total operating expenses declined 31% year-over-year in Q4 (a $13.5 million reduction). SG&A fell 46% and represented 41% of total net sales versus 59% in prior-year Q4. Excluding restructuring charges, total OpEx declined 41% year-over-year, reflecting realization of global restructuring savings.
Positive cash flow and strong balance sheet
Generated positive cash flow from operations of $7.0 million for the year. Ended FY2025 with $303 million in cash and investments, no debt, and working capital of $455 million, positioning the company with ample liquidity to support operations.
Recordati partnership delivered immediate value
Exclusive long-term license and supply agreement with Recordati (59 countries, Europe focus) closed in mid-2025, delivering a $25 million upfront cash payment and up to $150 million of future milestone payments (first milestone tied to $100 million of annual net sales). Agreement enables partner-led European commercialization and economies of scale.
Operating loss materially reduced
Q4 operating loss narrowed to $2.3 million versus an operating loss of $16.0 million in prior-year Q4 (comparison excludes restructuring charges in both periods), demonstrating improved operating efficiency and margin progress.
U.S. franchise leadership and evidence base
Vascepa retained market leadership across icosapent ethyl products in the U.S. five years after first generic entry. Company highlighted ~30 million total prescriptions since 2013 and robust clinical evidence (REDUCE-IT shows 25% reduction in major cardiovascular events when added to a statin), supported by 45 abstracts/posters/papers in 2025 and recent publications in AJPC and EJPC.
International regulatory and launch progress
Partners achieved regulatory approvals in South Korea and Singapore with launches being prepared; Recordati advanced commercialization in Italy and secured pricing/reimbursement in Austria and Slovenia. Company expects regulatory reviews to advance in Thailand and the Philippines in 2026 and plans new filings in Vietnam and Malaysia.
Realization of restructuring plan savings on track
As of 12/31/2025, approximately half of the estimated $70 million in total annual operating expense savings were realized, with the company expecting to achieve full savings by 06/30/2026 as planned.
Negative Updates
Q4 Net Revenue Decline
Total net revenue for Q4 2025 was $49.2 million versus $62.3 million in prior-year Q4, a decline of approximately 21.0% year-over-year.
Rest of World Revenue Drop
Rest of world revenues fell to $3.1 million in Q4 2025 from $11.9 million in prior-year Q4, a decrease of ~74%, driven primarily by $7.8 million of stocking orders in 2024 that did not recur.
U.S. pricing pressure and expected Q1 volume headwinds
U.S. sales declined 7% in the quarter due to lower net selling price from proactive pricing actions. Management expects the majority of full-year U.S. volume declines to occur in Q1 (seasonal payer dynamics) and noted ongoing pricing pressure in the generic environment.
Revenue variability from partnered model and supply shipments
Transition to a partnered international commercial model introduces quarter-to-quarter revenue variability driven by launch timing, supply shipment cadence, end-market demand, and the structure of partner agreements—in Q4 Europe product revenue was $2.3 million (including $0.9 million in supply shipments) and is expected to shift to supply-based revenue post-transition.
Significant restructuring charges incurred
Total annual restructuring expense for 2025 totaled $36.2 million, with $4.1 million recorded in Q4; the company expects the last of these charges in early 2026, indicating near-term cash/expense impacts while benefits are realized over time.
Competitive and exclusivity risks in U.S.
The U.S. market remains dynamic with multiple generic competitors and payer dynamics that can change exclusivity status (company lost a PBM mid-2024 and regained it in 2025). Maintaining managed-care exclusives is critical and remains a risk for sustained pricing and volume.
Company Guidance
The company guided that it expects to realize the full ~$70 million of annualized operating expense savings from its global restructuring by 6/30/2026 (having realized roughly half as of 12/31/2025), with total restructuring charges to date of $36.2 million and $4.1 million recorded in Q4 and the last charges expected in early 2026; management reiterated an expectation of positive cash flow for full‑year 2026 after generating $7.0 million of operating cash flow in 2025 and finishing the year with $303 million of cash and investments, no debt, and $455 million of working capital. Q4 financials highlighted metrics that inform the guidance: total net revenue of $49.2 million (vs. $62.3 million prior‑year Q4), U.S. sales down 7% (driven by lower net selling price), Europe product revenue of $2.3 million (including $0.9 million in supply shipments), rest‑of‑world revenue of $3.1 million (vs. $11.9 million prior), total operating expenses down 31% ($13.5 million), COGS down 63% (10% ex one‑time items), SG&A down 46% and representing 41% of net sales (vs. 59% prior), and an operating loss narrowed to $2.3 million (from $16.0 million, excluding restructuring). The company also noted that its Recordati partnership delivered $25 million upfront with up to $150 million of potential future milestones (first payable at $100 million Recordati annual net sales), and cautioned that partnered revenues will produce quarter‑to‑quarter variability and that U.S. volume pressure historically occurs primarily in Q1.Amarin Financial Statement Overview
Summary
Financials are pressured by multi-year revenue declines and ongoing net losses, with very weak and volatile cash flow support. The key offset is a strong, low-leverage balance sheet and improved gross margin/loss narrowing in 2025, which provides runway but does not yet resolve the earnings/cash flow challenge.Income Statement
Revenue has been shrinking for several years (from $614M in 2020 to $183M in 2025), including a steep ~19% decline in 2025. Profitability remains weak: while gross margin rebounded strongly in 2025 (~66% vs ~36% in 2024), the company is still operating at a loss (negative operating profit) and remains unprofitable at the bottom line (2025 net margin about -21%). The main positive is that losses narrowed materially in 2025 versus 2024, but the overall trajectory still reflects a challenged demand and earnings profile.28
Negative
Balance Sheet
The balance sheet is a clear strength. Leverage is very low (debt-to-equity roughly 1–3% across the period), giving meaningful financial flexibility. Equity has declined over time (about $667M in 2021 to ~$459M in 2025), consistent with ongoing losses, and returns on equity have been negative in recent years—signaling value dilution risk if losses persist. Even so, the company is not debt-burdened, which reduces near-term balance sheet stress.72
Positive
Cash Flow
Cash generation is inconsistent and recently weak. Operating cash flow and free cash flow swung from positive in 2023 (~$6.9M) to negative in 2024 (~-$31M), and 2025 shows $0 for both operating and free cash flow (with -100% free cash flow growth), indicating a sharp deterioration or lack of cash flow contribution in the latest period. Earlier years also show large cash outflows (notably 2022). Overall, cash flow performance does not yet provide reliable support for sustained losses.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 182.75M | 228.61M | 306.91M | 369.19M | 583.19M |
| Gross Profit | 120.87M | 81.38M | 165.54M | 242.48M | 461.86M |
| EBITDA | -41.54M | -74.18M | -50.70M | -100.69M | 14.28M |
| Net Income | -38.80M | -82.18M | -59.11M | -105.80M | 7.73M |
Balance Sheet | |||||
| Total Assets | 670.77M | 685.35M | 831.68M | 886.18M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 302.79M | 294.22M | 320.66M | 309.36M | 454.13M |
| Total Debt | 12.16M | 7.72M | 8.74M | 10.02M | 8.58M |
| Total Liabilities | 211.49M | 199.17M | 279.59M | 290.85M | 400.97M |
| Stockholders Equity | 459.28M | 486.18M | 552.10M | 595.33M | 667.10M |
Cash Flow | |||||
| Free Cash Flow | 6.74M | -31.02M | 6.88M | -179.98M | -66.53M |
| Operating Cash Flow | 6.74M | -31.03M | 6.91M | -179.98M | -66.53M |
| Investing Cash Flow | 8.85M | -45.98M | -25.62M | 175.18M | 104.09M |
| Financing Cash Flow | -2.04M | -1.44M | 230.89K | -378.77K | -5.07M |
Amarin Technical Analysis
Negative
14.94
Price Trends
15.10
Negative
15.32
Negative
15.51
Negative
Market Momentum
0.13
Negative
48.52
Neutral
48.13
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 14.94 is below the 20-day moving average (MA) of 15.00, below the 50-day MA of 15.10, and below the 200-day MA of 15.51, indicating a bearish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 48.13 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 65 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $469.96M | 2.10 | 240.83% | ― | 79.13% | 2798.12% | |
55 Neutral | $1.18B | -39.78 | -23.29% | ― | ― | 79.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $444.84M | -3.61 | -49.35% | ― | -61.54% | 31.25% | |
49 Neutral | $485.30M | -2.29 | -65.76% | ― | ― | 18.39% | |
48 Neutral | $310.91M | -149.32 | -8.36% | ― | -6.31% | -115.62% | |
41 Neutral | $85.46M | -9.19 | >-0.01% | ― | ― | 4.23% |
* Healthcare Sector Average
AMRN
Amarin
14.94
6.23
71.53%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.