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Amarin Corporation Plc (AMRN)
NASDAQ:AMRN

Amarin (AMRN) AI Stock Analysis

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Amarin

(NASDAQ:AMRN)

Rating:54Neutral
Price Target:
$16.50
▼(-0.90%Downside)
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 with Recordati unlocks up to $175M in economic value through a $25M upfront payment and up to $150M in commercial milestones.
Strategic Partnership
Amarin announced a long-term exclusive license and supply agreement with Recordati to commercialize VAZKEPA across 59 countries in Europe, offloading the capital-intensive EU buildout to a seasoned local partner.
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 eight generic competitors, with gross margins declining to 41% in 4Q24 vs 58% in 4Q23.

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 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 63.40%|
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 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue214.19M228.61M306.91M369.19M583.19M614.06M
Gross Profit73.89M81.38M165.54M242.48M461.86M482.62M
EBITDA-77.38M-74.18M-50.70M-100.65M14.28M-12.71M
Net Income-87.93M-82.18M-59.11M-105.80M7.73M-18.00M
Balance Sheet
Total Assets655.68M685.35M831.68M886.18M1.07B966.02M
Cash, Cash Equivalents and Short-Term Investments281.79M294.22M320.66M309.36M454.13M500.93M
Total Debt7.94M7.72M8.74M10.02M8.58M9.15M
Total Liabilities181.99M199.17M279.59M290.85M400.97M338.52M
Stockholders Equity473.69M486.18M552.10M595.33M667.10M627.50M
Cash Flow
Free Cash Flow-28.13M-31.02M6.35M-180.69M-22.00M
Operating Cash Flow-30.82M-31.03M6.88M-180.09M-66.54M-21.75M
Investing Cash Flow-62.52M-45.98M-25.52M175.29M104.10M-376.96M
Financing Cash Flow-1.14M-1.44M230.00K-379.00K-5.07M-58.91M

Amarin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.65
Price Trends
50DMA
12.10
Positive
100DMA
10.96
Positive
200DMA
10.97
Positive
Market Momentum
MACD
1.33
Negative
RSI
74.12
Negative
STOCH
87.30
Negative
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 16.65 is above the 20-day moving average (MA) of 14.04, above the 50-day MA of 12.10, and above the 200-day MA of 10.97, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 87.30 is Negative, 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 0 New Risks

Amarin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$245.34M59.107.41%26.86%
54
Neutral
$344.96M-17.22%-22.93%-65.68%
53
Neutral
$193.43M117.492.17%134.52%
51
Neutral
$7.50B0.32-61.87%2.27%17.10%1.59%
51
Neutral
$192.25M-32.97%
49
Neutral
$271.46M322.49%-30.66%36.48%
47
Neutral
$131.29M-262.12%239.92%79.41%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMRN
Amarin
16.65
1.92
13.03%
SGMO
Sangamo Biosciences
0.54
0.22
68.75%
GNFT
Genfit SA
3.89
-0.27
-6.49%
BWAY
Brainsway
12.80
7.00
120.69%
FHTX
Foghorn Therapeutics
4.95
-0.35
-6.60%
FDMT
4D Molecular Therapeutics
4.31
-16.84
-79.62%

Amarin Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Amarin Enters Licensing Agreement with Recordati
Positive
Jun 24, 2025

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.

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.

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.Date of analysis: Jun 25, 2025