Amarin (AMRN) AI Stock Analysis

• Market Cap: $274.52M
• Dividend Yield: N/A
• Average Volume (3M): 90.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -22.93%
• EPS Growth: -65.68%
• Country: US
• Employees: 275
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 20,707,012
• 10 Day Avg. Volume: 118,970
• 30 Day Avg. Volume: 90,220
• PEG Ratio: 3.90
• Price to Book (P/B): 12.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -620.06
• Enterprise Value/Market Cap: 24.62
• Enterprise Value/Revenue: 7.11
• Enterprise Value/Gross Profit: 91.47
• Enterprise Value/Ebitda: -30.37
• 1Y Price Target: $8.00
• Price Target Upside: -39.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $14.00 ▲(5.66%Upside)

Amarin's stock score reflects a challenging financial performance with declining revenues and profitability issues. Despite strong technical indicators, the stock is weighed down by valuation concerns and mixed corporate developments. Strategic global expansion is promising, but U.S. market challenges and shareholder setbacks necessitate caution.

Positive Factors

Earnings

The updates have increased the price target to $9 from $1, with the largest driver being the 1-for-20 ADS ratio change.

Financial Stability

Amarin currently has a cash position of $281.8M with no debt, which supports continued efforts of the company to maintain prudent cash deployment while pursuing growth for Vazkepa ex-US.

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.

Negative Factors

Competition

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.

Market Challenges

There is ongoing pressure on the US Vascepa business from several generic entrants.

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 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 health presents significant challenges with declining revenues and profitability issues. While the balance sheet shows a good equity cushion, weakening asset and equity trends are notable. Cash flow volatility adds to the company's financial pressures, suggesting a need for strategic changes to enhance performance.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
214.19M	228.61M	306.91M	369.19M	583.19M	614.06M
	Gross Profit
73.89M	81.38M	165.54M	242.48M	461.86M	482.62M
	EBIT
-94.98M	-91.80M	-67.59M	-105.87M	10.50M	-19.66M
	EBITDA
-77.38M	-74.18M	-50.70M	-100.65M	14.28M	-12.71M
	Net Income Common Stockholders
-87.93M	-82.18M	-59.11M	-105.80M	7.73M	-18.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
281.79M	294.22M	320.66M	309.36M	454.13M	500.93M
	Total Assets
655.68M	685.35M	831.68M	886.18M	1.07B	966.02M
	Total Debt
7.94M	7.72M	8.74M	10.02M	8.58M	9.15M
	Net Debt
-111.58M	-113.31M	-190.51M	-207.65M	-210.88M	-177.81M
	Total Liabilities
181.99M	199.17M	279.59M	290.85M	400.97M	338.52M
	Stockholders Equity
473.69M	486.18M	552.10M	595.33M	667.10M	627.50M
Cash Flow		Free Cash Flow
-28.13M	-31.02M	6.35M	-180.69M	―	-22.00M
	Operating Cash Flow
-30.82M	-31.03M	6.88M	-180.09M	-66.54M	-21.75M
	Investing Cash Flow
-62.52M	-45.98M	-25.52M	175.29M	104.10M	-376.96M
	Financing Cash Flow
-1.14M	-1.44M	230.00K	-379.00K	-5.07M	-58.91M

Amarin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRN, the sentiment is Positive. The current price of 13.25 is above the 20-day moving average (MA) of 11.84, above the 50-day MA of 10.68, and above the 200-day MA of 10.80, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 58.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRN.

Amarin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	78 Outperform	$223.06M	52.72	7.41%	―	26.86%	―
AMRN	58 Neutral	$274.52M	―	-17.22%	―	-22.93%	-65.68%
GNFT	56 Neutral	$218.95M	121.75	2.17%	―	134.52%	―
FHTX	54 Neutral	$255.30M	―	322.49%	―	-30.66%	36.48%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
FDMT	48 Neutral	$208.46M	―	-32.97%	―	―	―
SGMO	43 Neutral	$127.36M	―	-262.12%	―	239.92%	79.41%

Amarin Corporate Events

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.

Amarin Announces ADS Ratio Change to Maintain Nasdaq Listing

On April 9, 2025, Amarin announced a change in the ratio of its American Depositary Shares (ADS) to ordinary shares, effective April 11, 2025, to maintain its Nasdaq listing. This adjustment, resulting in a one-for-twenty reverse split of ADSs, aims to increase the per-share market price to meet Nasdaq’s minimum bid requirement, although the company cannot guarantee the expected price increase.

Amarin Appoints Michael Torok to Board of Directors

On April 4, 2025, Amarin Corporation appointed Michael Torok to its Board of Directors. Torok, co-founder of JEC Capital Partners, brings financial expertise and a focus on maximizing shareholder value. His appointment is expected to strengthen Amarin’s strategic direction and shareholder engagement.

Amarin Announces Board Member Departure Ahead of 2025 Meeting

On March 25, 2025, Amarin Corporation plc announced that Mr. Mark DiPaolo has decided not to stand for re-election at the 2025 Annual Meeting of Shareholders, scheduled for May 2025. Mr. DiPaolo’s departure from the Board of Directors is not due to any disagreements with the company’s operations, policies, or practices.