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Amarin Corporation Plc (AMRN)
NASDAQ:AMRN

Amarin (AMRN) AI Stock Analysis

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Amarin

(NASDAQ:AMRN)

Rating:51Neutral
Price Target:
$10.50
▼( -5.49% Downside)
Amarin's overall stock score reflects significant financial and market challenges, notably declining revenues and profitability issues. Despite strong cash management and strategic global expansion, U.S. generic competition and increasing net losses are major concerns. Technical analysis and valuation metrics further weigh down the score.
Positive Factors
EU Revenues
There has been a recent uptick in EU Vazkepa revenues driven by broader market access and steady growth in adoption across European countries.
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.
NASDAQ Compliance
Amarin’s 1-for-20 ADS ratio change has led to regained NASDAQ compliance, which lowered the company’s existing share count.
Patent Protection
EU patent protection extends exclusivity to 2039, which could enhance the stock's value.
Negative Factors
US Market Competition
There is ongoing pressure on the US Vascepa business from several generic entrants.
US Market 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 (AMRN) vs. SPDR S&P 500 ETF (SPY)

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 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 a mixed picture with significant challenges. The income statement reflects declining revenues and profitability issues. While the balance sheet shows 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 financial performance and stability.
Income Statement
45
Neutral
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
60
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
204.59M306.91M369.19M583.19M614.06M
Gross Profit
81.38M165.54M242.48M461.86M482.62M
EBIT
-91.80M-67.59M-92.34M22.28M-19.66M
EBITDA
-74.18M-50.90M-100.65M14.28M-12.71M
Net Income Common Stockholders
-82.18M-59.11M-105.80M7.73M-18.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
294.22M320.66M309.36M454.13M500.93M
Total Assets
685.35M831.68M886.18M1.07B966.02M
Total Debt
7.72M8.74M10.02M8.58M9.15M
Net Debt
-113.31M-190.51M-207.65M-210.88M-177.81M
Total Liabilities
199.17M279.59M290.85M400.97M338.52M
Stockholders Equity
486.18M552.10M595.33M667.10M627.50M
Cash FlowFree Cash Flow
-31.02M6.35M-180.69M-22.00M
Operating Cash Flow
-31.02M6.88M-180.09M-66.54M-21.75M
Investing Cash Flow
-45.98M-25.52M175.29M104.10M-376.96M
Financing Cash Flow
-1.40K230.00K-379.00K-5.07M-58.91M

Amarin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.11
Price Trends
50DMA
9.75
Positive
100DMA
10.34
Positive
200DMA
10.83
Positive
Market Momentum
MACD
0.30
Negative
RSI
61.10
Neutral
STOCH
77.70
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 11.11 is above the 20-day moving average (MA) of 10.62, above the 50-day MA of 9.75, and above the 200-day MA of 10.83, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRN.

Amarin Risk Analysis

Amarin disclosed 63 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 2 New Risks
1.
We may seek to enter into additional collaborations, licenses and other strategic transactions and may not be successful in doing so, and even if we are, we may relinquish valuable rights and may not realize the benefits of such relationships. Q4, 2024
2.
We could face an increased risk of securities class action litigation. Q4, 2024

Amarin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$199.33M49.547.41%26.86%
59
Neutral
$219.42M127.792.17%134.52%
53
Neutral
$5.14B3.03-44.09%2.83%16.75%-0.06%
51
Neutral
$230.18M-17.22%-22.93%-65.68%
47
Neutral
$230.77M322.49%-30.66%36.48%
44
Neutral
$161.67M-32.97%
38
Underperform
$121.35M-262.12%239.92%79.41%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMRN
Amarin
11.11
-5.69
-33.87%
SGMO
Sangamo Biosciences
0.47
-0.15
-24.19%
GNFT
Genfit SA
4.23
-0.41
-8.84%
BWAY
Brainsway
10.73
5.40
101.31%
FHTX
Foghorn Therapeutics
4.14
-1.66
-28.62%
FDMT
4D Molecular Therapeutics
3.49
-21.41
-85.98%

Amarin Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 9.03%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strategic global expansion and financial resilience, particularly in Europe and other international markets. However, these achievements are offset by significant challenges in the U.S. market due to generic competition and an increased net loss.
Q1-2025 Updates
Positive Updates
Expansion of Global Reach
VASCEPA is now reimbursed in 21 countries, up from seven in 2023, and commercialized in nine rest of the world markets.
European Market Growth
VASCEPA revenues in Europe grew by 16% sequentially, driven by demand in Spain, the U.K., and Central Eastern Europe.
Strong Financial Management
The company maintained a solid cash position with $282 million in cash and no debt, keeping cash burn below 10% over the last 10 quarters.
Progress in Market Access
Secured reimbursement in Austria and launched commercially; active engagements in Norway and Ireland are ongoing.
Scientific Advancements
Nearly 100 abstracts and publications and over 150 educational initiatives since 2023 to promote the understanding of VASCEPA.
Negative Updates
Decline in U.S. Revenue
U.S. product revenue dropped to $35.7 million from $48.1 million in Q1 2024 due to generic competition and decreased volume.
Rest of World Revenue Decline
Minimal net product revenue from partners in the rest of the world compared to $5.2 million in Q1 2024, affected by launch supply order timing.
Net Loss Increase
Net loss increased to $15.7 million from $10 million in the prior year period, primarily due to U.S. generic market impact.
Company Guidance
During Amarin Corporation's first-quarter 2025 guidance call, several key metrics highlighted the company's progress and strategic focus. The European market showed a 16% sequential quarterly growth with $5.4 million in revenue, driven by success in Spain, the U.K., and Central Eastern Europe. The company achieved reimbursement in Austria and secured access in 85% of Italy's eligible market. In the U.S., VASCEPA maintained profitability, generating $35.7 million in product revenue despite ongoing generic competition. The rest of the world saw VASCEPA's commercialization in nine markets, while efforts in China targeted a market with 330 million cardiovascular disease patients. Financially, Amarin reported a total net revenue of $42 million, with a gross margin of 59% and a net loss of $15.7 million. The company maintained a debt-free balance sheet with $282 million in cash and investments, focusing on prudent cash management and operational efficiency.

Amarin Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Amarin Shareholders Reject Key Proposal at AGM
Negative
May 15, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Amarin Regains Nasdaq Compliance with Share Adjustment
Positive
Apr 29, 2025

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.

Delistings and Listing ChangesStock Split
Amarin Announces ADS Ratio Change to Maintain Nasdaq Listing
Neutral
Apr 9, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Amarin Appoints Michael Torok to Board of Directors
Positive
Apr 7, 2025

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.

Executive/Board ChangesShareholder Meetings
Amarin Announces Board Member Departure Ahead of 2025 Meeting
Neutral
Mar 28, 2025

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.

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.

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.