Amarin (AMRN) AI Stock Analysis

• Market Cap: $318.41M
• Dividend Yield: N/A
• Average Volume (3M): 64.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -16.92%
• EPS Growth: -207.34%
• Country: US
• Employees: 275
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 20,682,775
• 10 Day Avg. Volume: 50,712
• 30 Day Avg. Volume: 64,367
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: -0.46
• 1Y Price Target: $11.00
• Price Target Upside: -28.25% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $16.50 ▲(7.63% Upside)

Amarin's overall stock score reflects significant financial challenges, with declining revenues and negative cash flows being major concerns. However, positive momentum from technical indicators and strategic initiatives highlighted in the earnings call provide some optimism. The valuation remains a challenge due to ongoing losses.

Positive Factors

EU 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.

Partnership and Strategic Initiatives

The Recordati partnership in Europe helps reshape Amarin's business model by transferring commercialization to a seasoned local partner with established cardiovascular infrastructure and expertise.

Revenue Growth

The total revenues included a $25M upfront payment from the Recordati deal, contributing to the overall revenue growth.

Negative Factors

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.

US Market Competition

The longer-term outlook for the US Vascepa business remains conservative given growing pressure from generic competitors.

US Market 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.

Amarin Business Overview & Revenue Model

Company Description

Amarin Corporation is a biopharmaceutical company focused on developing and commercializing innovative therapies to improve cardiovascular health. The company is primarily known for its flagship product, Vascepa, an omega-3 fatty acid drug approved for use in reducing cardiovascular events in patients with elevated triglyceride levels. Amarin operates within the pharmaceutical sector, specifically targeting cardiovascular diseases, and is dedicated to advancing research and development in this area to provide effective and safe treatment options.

How the Company Makes Money

Amarin generates revenue primarily through the sale of its product Vascepa, which is marketed to healthcare providers and patients for the management of cardiovascular health. The company earns money by selling Vascepa directly to wholesalers and pharmacies, who then distribute it to healthcare facilities and patients. In addition to direct sales, Amarin may also generate revenue from partnerships or collaborations with other pharmaceutical companies, which can include licensing agreements or co-promotion deals. The company continually invests in clinical trials and research to expand the indications for Vascepa and develop new products, which can lead to increased sales and market penetration over time.

Amarin Financial Statement Overview

Summary

Amarin's financial health is challenged by declining revenues and profitability issues, as indicated by negative net income and volatile cash flow. While the balance sheet shows a strong equity position, the erosion of asset base raises concerns.

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	193.24M	228.61M	306.91M	369.19M	583.19M	614.06M
Gross Profit	82.20M	81.38M	165.54M	242.48M	461.86M	482.62M
EBITDA	-97.35M	-74.18M	-50.70M	-100.65M	14.28M	-12.71M
Net Income	-103.59M	-82.18M	-59.11M	-105.80M	7.73M	-18.00M
Balance Sheet
Total Assets	670.13M	685.35M	831.68M	886.18M	1.07B	966.02M
Cash, Cash Equivalents and Short-Term Investments	298.70M	294.22M	320.66M	309.36M	454.13M	500.93M
Total Debt	7.34M	7.72M	8.74M	10.02M	8.58M	9.15M
Total Liabilities	205.20M	199.17M	279.59M	290.85M	400.97M	338.52M
Stockholders Equity	464.92M	486.18M	552.10M	595.33M	667.10M	627.50M
Cash Flow
Free Cash Flow	-11.52M	-31.02M	6.35M	-180.69M	―	-22.00M
Operating Cash Flow	-11.45M	-31.03M	6.88M	-180.09M	-66.54M	-21.75M
Investing Cash Flow	-54.83M	-45.98M	-25.52M	175.29M	104.10M	-376.96M
Financing Cash Flow	-1.83M	-1.44M	230.00K	-379.00K	-5.07M	-58.91M

Amarin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.33
• 50DMA: Negative
• 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 Positive. The current price of 15.33 is below the 20-day moving average (MA) of 15.38, below the 50-day MA of 15.64, and above the 200-day MA of 11.83, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.56 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
RIGL	74 Outperform	$741.53M	7.64	376.09%	―	105.62%	―
AMRN	55 Neutral	$318.41M	―	-20.38%	―	-16.92%	-207.34%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%
ALT	51 Neutral	$333.61M	―	-55.91%	―	-95.11%	27.25%
CRVS	41 Neutral	$459.01M	―	-68.67%	―	―	-50.83%
RCKT	40 Underperform	$353.92M	―	-69.65%	―	―	10.36%
ALDX	37 Underperform	$333.02M	―	-65.91%	―	―	-32.74%

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.