Amarin (AMRN) AI Stock Analysis

• Market Cap: $321.13M
• Dividend Yield: N/A
• Average Volume (3M): 138.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -22.93%
• EPS Growth: -65.68%
• Country: US
• Employees: 275
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 20,707,012
• 10 Day Avg. Volume: 78,168
• 30 Day Avg. Volume: 138,713
• PEG Ratio: 7.17
• Price to Book (P/B): 13.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -203.97
• Enterprise Value/Market Cap: 19.27
• Enterprise Value/Revenue: 6.51
• Enterprise Value/Gross Profit: 83.75
• Enterprise Value/Ebitda: -27.81
• 1Y Price Target: $12.00
• Price Target Upside: -21.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $16.50 ▲(7.28%Upside)

The overall stock score is driven by financial challenges, with declining revenues and profitability issues being significant concerns. While technical indicators show strong upward momentum, valuation metrics and ongoing losses negatively impact the score. Recent strategic partnerships and compliance achievements are positives but are not enough to outweigh the underlying financial issues.

Positive Factors

Financial Performance

The agreement unlocks up to $175M in near- and mid-term economic value through a $25M upfront payment and up to $150M in commercial milestones.

Market Expansion

There has been a recent uptick in EU Vazkepa revenues driven by broader market access and steady growth in adoption across European countries.

Strategic Partnerships

Amarin announced a long-term exclusive license and supply agreement with Recordati to commercialize VAZKEPA across 59 countries in Europe.

Negative Factors

Competitive Pressure

Investors may remain cautious about the commercial business as the US VASCEPA franchise continues to face significant pressure from at least eight generic competitors.

Market Challenges

The US Vascepa franchise continues to face significant competitive pressure from at least 8 generic competitors, with gross margins declining to 41% in 4Q24 vs 58% in 4Q23.

Pricing Pressure

The business mix has shifted more toward Medicare Part D following CVS's decision to no longer cover Vascepa as the exclusive IPE product, creating additional net pricing pressure.

Amarin Business Overview & Revenue Model

Company Description

Amarin 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 Money

Amarin makes money primarily through the sale and distribution of its proprietary drug, Vascepa, which is approved for use in multiple countries to reduce the risk of cardiovascular events in patients with certain risk factors. The company's revenue model is heavily reliant on the commercialization of this product, with sales being driven by prescriptions filled through healthcare providers and pharmacies. Key revenue streams include direct sales in regions where Vascepa is approved, as well as licensing agreements and partnerships in territories where Amarin collaborates with other pharmaceutical companies to expand market access. Strategic partnerships, such as distribution agreements and collaborations for market expansion, play a significant role in enhancing the company's earnings and supporting its growth trajectory in the competitive pharmaceutical landscape.

Amarin Financial Statement Overview

Summary

Amarin faces financial challenges with declining revenues and profitability issues as indicated by a low income statement score. Despite a strong equity position, the balance sheet shows weakening asset trends and increasing liabilities. Cash flow volatility further underscores financial pressures.

Income Statement

The income statement reveals declining revenue over recent years, with a significant drop from $583.2M in 2021 to $204.6M in 2024. The gross profit margin has also decreased, indicating cost pressures. The company has faced persistent net losses, with net income declining from a small profit in 2021 to substantial losses in subsequent years. Negative EBIT and EBITDA margins highlight profitability challenges.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio, signaling a solid capital position. However, declining stockholders' equity and increasing total liabilities over the years are concerning. The debt-to-equity ratio has remained low, indicating manageable leverage. Despite these strengths, the erosion of asset base and equity is a potential risk.

Cash Flow

Cash flow analysis shows inconsistent free cash flow with negative trends, especially after 2021. Operating cash flow has been volatile, with a significant reduction to zero in 2024 from positive figures in previous years. This instability in cash flow generation poses concerns for liquidity and operational sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	228.61M	306.91M	369.19M	583.19M	614.06M
Gross Profit	81.38M	165.54M	242.48M	461.86M	482.62M
EBITDA	-74.18M	-50.70M	-100.65M	14.28M	-12.71M
Net Income	-82.18M	-59.11M	-105.80M	7.73M	-18.00M
Balance Sheet
Total Assets	685.35M	831.68M	886.18M	1.07B	966.02M
Cash, Cash Equivalents and Short-Term Investments	294.22M	320.66M	309.36M	454.13M	500.93M
Total Debt	7.72M	8.74M	10.02M	8.58M	9.15M
Total Liabilities	199.17M	279.59M	290.85M	400.97M	338.52M
Stockholders Equity	486.18M	552.10M	595.33M	667.10M	627.50M
Cash Flow
Free Cash Flow	-31.02M	6.35M	-180.69M	―	-22.00M
Operating Cash Flow	-31.03M	6.88M	-180.09M	-66.54M	-21.75M
Investing Cash Flow	-45.98M	-25.52M	175.29M	104.10M	-376.96M
Financing Cash Flow	-1.44M	230.00K	-379.00K	-5.07M	-58.91M

Amarin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRN, the sentiment is Neutral. The current price of 15.38 is below the 20-day moving average (MA) of 16.19, above the 50-day MA of 13.90, and above the 200-day MA of 11.30, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMRN.

Amarin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	73 Outperform	$365.13M	9.73	531.78%	―	68.74%	―
AMRN	54 Neutral	$321.13M	―	-17.22%	―	-22.93%	-65.68%
Sector *	52 Neutral	$7.61B	0.11	-63.03%	2.07%	16.35%	0.29%
ALT	51 Neutral	$333.35M	―	-57.28%	―	-95.12%	21.09%
CRVS	41 Neutral	$366.29M	―	-100.13%	―	―	-71.53%
RCKT	40 Underperform	$345.84M	―	-60.45%	―	―	6.99%
ALDX	37 Underperform	$325.83M	―	-65.19%	―	―	-47.28%

Amarin Corporate Events

Amarin Enters Licensing Agreement with Recordati

On June 20, 2025, Amarin Corporation entered into a long-term license and supply agreement with Recordati to commercialize VAZKEPA® in 59 European countries. The agreement includes an upfront payment of $25 million, potential milestone payments up to $150 million, and royalties based on net sales. This partnership allows Amarin to streamline its global operations, resulting in approximately $70 million in annual cost savings and an accelerated path to positive cash flow. Additionally, Amarin announced a global restructuring to reduce operating costs, primarily from its European operations, with expected completion by June 30, 2026.

The most recent analyst rating on (AMRN) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Amarin stock, see the AMRN Stock Forecast page.

Amarin Shareholders Reject Key Proposal at AGM

At Amarin Corporation’s Annual General Meeting on May 13, 2025, shareholders voted on several proposals, with all but Proposal 12 being approved. Proposal 12, which aimed to allow the Board to allot 10% of the company’s share capital without statutory pre-emption rights, did not receive the necessary shareholder approval despite recommendations from ISS and Glass Lewis. This rejection necessitates the Board to explore alternative compensation arrangements for non-employee directors, potentially impacting the company’s cash position.

The most recent analyst rating on (AMRN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Amarin stock, see the AMRN Stock Forecast page.

Amarin Regains Nasdaq Compliance with Share Adjustment

On April 29, 2025, Amarin Corporation announced it has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. This compliance was achieved following an adjustment in the ratio of its American Depositary Shares to ordinary shares. The company remains committed to maximizing the global value of its primary product, VASCEPA/VAZKEPA, for cardiovascular disease management.