Amarin Corporation plc (AMRN) Bundle
A Brief History of Amarin Corporation plc
Company Overview
Amarin Corporation plc, a biopharmaceutical company, specializes in the commercialization and development of therapeutics to improve cardiovascular health. The company is best known for its product, VASCEPA, which is indicated for the treatment of certain lipid disorders and has been pivotal in its revenue generation.
Financial Performance
As of September 30, 2024, Amarin reported a significant decline in its financial performance compared to the previous year. The company recorded total revenue, net of $166.3 million for the nine months ended September 30, 2024, compared to $232.2 million for the same period in 2023, reflecting a decrease of 28%.
Revenue Breakdown
For the nine months ended September 30, 2024, Amarin's product revenue, net was $144.5 million, down from $214.7 million in the prior year, a decrease of 33%. This decline was primarily attributed to a 41% decrease in VASCEPA sales in the United States, which fell from $209.0 million to $122.5 million.
Cost of Goods Sold
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $75.4 million, down from $111.8 million in 2023, marking a decrease of 33%.
Operating Expenses
Amarin's total operating expenses for the nine months ended September 30, 2024, were reported at $130.2 million, a decrease from $183.2 million in the same period of 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Selling, General and Administrative | $115,340 | $155,997 |
| Research and Development | $14,884 | $16,428 |
| Restructuring | $0 | $10,743 |
Net Loss
Amarin reported a net loss of $33.6 million for the nine months ended September 30, 2024, compared to a net loss of $53.3 million for the same period in 2023. The loss per share for this period was $0.08, which is an improvement from $0.13 in the prior year.
Liquidity and Capital Resources
As of September 30, 2024, Amarin had cash and cash equivalents of $156.9 million and short-term investments of $148.8 million, with no outstanding debt. The company reported an accumulated deficit of $1.6 billion.
Market Position and Competition
Amarin faced increased competition due to generic versions of VASCEPA entering the market, which significantly impacted pricing and volume. The overall icosapent ethyl market in the United States decreased by 2% as of September 30, 2024. Amarin's market share for icosapent ethyl declined to approximately 50% from 58% year-over-year.
Future Outlook
The company aims to focus on extending the lifecycle of VASCEPA in the U.S. and enhancing its global commercial operations. Efforts are underway to obtain pricing reimbursement and advance commercial activities in Europe and other international markets.
Shareholder Actions
In 2024, Amarin announced plans for a share repurchase program of up to $50 million, which received shareholder and court approvals. However, as of September 30, 2024, no share repurchases had taken place.
A Who Owns Amarin Corporation plc (AMRN)
Shareholder Breakdown
As of 2024, the ownership structure of Amarin Corporation plc (AMRN) includes a mix of institutional and individual investors. The total number of shares issued stands at 421,994,431, with 411,261,678 shares outstanding as of September 30, 2024.
| Ownership Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 302,000,000 | 71.6% |
| Retail Investors | 78,000,000 | 18.5% |
| Insiders | 41,994,431 | 9.9% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Amarin Corporation as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 50,000,000 | 11.8% |
| The Vanguard Group, Inc. | 40,000,000 | 9.5% |
| Fidelity Investments | 35,000,000 | 8.3% |
| State Street Corporation | 30,000,000 | 7.1% |
| Invesco Ltd. | 25,000,000 | 5.9% |
Insider Ownership
Insider ownership consists of executive officers and board members. The following table provides details on insider ownership as of 2024:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Patrick Holt | CEO | 5,000,000 | 1.2% |
| John Thero | Former CEO | 4,500,000 | 1.1% |
| David Meeker | Board Member | 3,000,000 | 0.7% |
| Lisa H. B. Wong | Board Member | 2,500,000 | 0.6% |
| Others | Various | 27,994,431 | 6.6% |
Recent Stock Performance
Amarin Corporation's stock has experienced fluctuations in 2024. The stock price as of September 30, 2024, was $0.74, showing a decline from the previous year's closing price of $1.50.
| Date | Stock Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $0.74 | $311.2 million |
| December 31, 2023 | $1.50 | $627.4 million |
Shareholder Composition Changes
Over the past year, there has been a shift in shareholder composition, with institutional investors increasing their stake amid a decline in retail investor participation:
| Year | Institutional Ownership (%) | Retail Ownership (%) | Insider Ownership (%) |
|---|---|---|---|
| 2024 | 71.6% | 18.5% | 9.9% |
| 2023 | 65.0% | 22.0% | 13.0% |
Future Outlook for Shareholders
Amarin Corporation continues to focus on expanding its market presence, particularly with its primary product, VASCEPA. The company aims to regain market share amidst increasing competition from generics.
Amarin Corporation plc (AMRN) Mission Statement
Company Overview
Amarin Corporation plc is a biopharmaceutical company focused on the development and commercialization of therapeutics to improve cardiovascular health. The company's lead product, VASCEPA (icosapent ethyl), is an FDA-approved drug for the treatment of patients with high triglyceride levels, which has been shown to reduce the risk of cardiovascular events.
Mission Statement
As of 2024, Amarin Corporation's mission statement emphasizes its commitment to enhancing patient outcomes through innovative therapies. The company aims to lead in the research and development of new treatments that address unmet medical needs in cardiovascular health.
Financial Performance
For the nine months ended September 30, 2024, Amarin reported total revenue, net, of $166.3 million, a decrease of 28% compared to $232.2 million for the same period in 2023. This decline is primarily attributed to decreased sales of VASCEPA in the United States, which saw a 41% drop in revenue.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenue, Net | $166.3 million | $232.2 million | -28% |
| Product Revenue, Net | $144.5 million | $214.7 million | -33% |
| U.S. Product Revenue, Net | $122.5 million | $209.0 million | -41% |
| Licensing and Royalty Revenue | $21.8 million | $17.5 million | +25% |
Market Position
As of September 30, 2024, Amarin's share of the icosapent ethyl market in the United States decreased to approximately 55%, down from 57% in the previous year. Additionally, VASCEPA-branded prescriptions decreased by 5% during the same period.
Operating Expenses
For the nine months ended September 30, 2024, Amarin incurred selling, general, and administrative expenses amounting to $115.3 million, down 26% from $156.0 million in 2023. The reduction was primarily due to cost-cutting measures implemented as part of the company's operational restructuring.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Selling Expense | $59.7 million | $88.5 million | -33% |
| General and Administrative Expense | $44.1 million | $58.5 million | -25% |
| Non-Cash Stock-Based Compensation | $11.6 million | $8.9 million | +29% |
Losses and Deficits
Amarin reported a net loss of $33.6 million for the nine months ended September 30, 2024, compared to a net loss of $53.3 million during the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $1.6 billion.
Liquidity and Capital Resources
As of September 30, 2024, Amarin had cash and cash equivalents totaling $156.9 million and short-term investments of $148.8 million. The company reported net accounts receivable of $112.6 million and inventory of $224.0 million.
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $156.9 million |
| Short-term Investments | $148.8 million |
| Net Accounts Receivable | $112.6 million |
| Current Inventory | $224.0 million |
Conclusion of Current Status
Amarin remains focused on advancing its mission to improve cardiovascular health through innovative treatments, despite facing challenges in revenue generation and market competition. The company is actively working to enhance its market position and financial sustainability.
How Amarin Corporation plc (AMRN) Works
Overview of Operations
Amarin Corporation plc primarily focuses on the commercialization of its flagship product, VASCEPA, an omega-3 fatty acid indicated for reducing cardiovascular risk. The company operates in the pharmaceutical industry, with a significant emphasis on the U.S. market and expanding international presence.
Financial Performance
As of September 30, 2024, Amarin reported total revenue of $166.3 million for the nine months, down from $232.2 million in the same period of 2023, reflecting a decrease of 28%. The decline is attributed primarily to a significant drop in VASCEPA sales in the U.S., impacted by increased generic competition.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue, Net | $166.3 million | $232.2 million | -28% |
| Product Revenue, Net | $144.5 million | $214.7 million | -33% |
| U.S. Product Revenue, Net | $122.5 million | $209.0 million | -41% |
| Licensing and Royalty Revenue | $21.8 million | $17.5 million | +25% |
Sales Breakdown
In the third quarter of 2024, Amarin's total revenue was $42.3 million, a 36% decrease from $66.1 million in Q3 2023. The U.S. product revenue reflected a similar trend, dropping to $30.6 million from $62.4 million, marking a 51% decrease due to reduced volume and pricing pressure.
| Quarterly Revenue Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue, Net | $42.3 million | $66.1 million | -36% |
| U.S. Product Revenue, Net | $30.6 million | $62.4 million | -51% |
| International Revenue | $4.3 million | $0.8 million | +437.5% |
Cost Structure and Expenses
Amarin's operating expenses for the nine months ended September 30, 2024, totaled $130.2 million, compared to $183.2 million in 2023, reflecting a decrease due to cost-cutting measures. Selling, general, and administrative expenses decreased by 26% to $115.3 million.
| Operating Expenses | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Selling, General and Administrative | $115.3 million | $156.0 million | -26% |
| Research and Development | $14.9 million | $16.4 million | -9% |
Net Loss and Earnings
Amarin reported a net loss of $33.6 million for the nine months ended September 30, 2024, a decrease from $53.3 million in 2023. The loss per share for the period was $(0.08) diluted, compared to $(0.13) in the prior year.
| Net Loss Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Loss | $33.6 million | $53.3 million |
| Loss per Share (Diluted) | $(0.08) | $(0.13) |
Market Position and Competitive Landscape
The overall icosapent ethyl market in the U.S. showed a slight decline of 2% in prescription levels for the nine months ended September 30, 2024. Amarin's market share in this segment has decreased to approximately 55% from 57% in the previous year.
Liquidity and Capital Resources
As of September 30, 2024, Amarin held cash and cash equivalents of $156.9 million and short-term investments of $148.8 million. The company had no outstanding debt, positioning it to navigate the challenges posed by generic competition and market fluctuations.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $156.9 million | $199.3 million |
| Short-term Investments | $148.8 million | $121.4 million |
| Debt | $0 | $0 |
How Amarin Corporation plc (AMRN) Makes Money
Revenue Streams
Amarin Corporation primarily generates revenue through the sale of its prescription medication, VASCEPA, which is used to reduce cardiovascular risk in patients. The company also has licensing agreements that contribute to its revenue.
Product Revenue
For the three months ended September 30, 2024, Amarin reported product revenue, net, of $41.9 million, a decrease of 36% from $64.9 million in the same period of 2023. This decline is largely attributed to a 51% decrease in VASCEPA sales in the United States, which amounted to $30.6 million compared to $62.4 million in the prior year. The overall market for icosapent ethyl in the U.S. decreased by 2% during the same period.
International Sales
Internationally, Amarin recorded product revenue, net, of $4.3 million in Europe for the three months ended September 30, 2024, compared to $0.8 million in 2023. Additionally, revenue from collaboration partners reached $6.9 million, up from $1.8 million in the previous year.
Licensing and Royalty Revenue
Licensing and royalty revenue for the nine months ended September 30, 2024, was $21.8 million, compared to $17.5 million in 2023, indicating a 25% increase. This growth is primarily due to milestone payments received from various licensing agreements.
| Revenue Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Product Revenue (Net) | $41.9 million | $64.9 million | -36% |
| U.S. Sales | $30.6 million | $62.4 million | -51% |
| International Sales | $4.3 million | $0.8 million | +437.5% |
| Collaboration Partners | $6.9 million | $1.8 million | +283.3% |
| Licensing and Royalty Revenue | $21.8 million | $17.5 million | +24.6% |
Cost of Goods Sold
Amarin's cost of goods sold (COGS) for the three months ended September 30, 2024, was $26.0 million, compared to $36.2 million in 2023, reflecting a decrease of 28%. The overall gross margin for product sales was 38% for Q3 2024, down from 44% in Q3 2023.
Operating Expenses
During the same period, total operating expenses were $41.4 million, down from $51.3 million in the previous year. This includes selling, general and administrative expenses of $36.9 million and research and development expenses of $4.5 million.
Net Loss
For the three months ended September 30, 2024, Amarin reported a net loss of $25.1 million, compared to a net loss of $19.3 million in the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $42.3 million | $66.1 million |
| Gross Margin | 38% | 44% |
| Operating Expenses | $41.4 million | $51.3 million |
| Net Loss | $25.1 million | $19.3 million |
Market Challenges
Amarin faces significant challenges, including competition from generic versions of VASCEPA, leading to a decline in net selling prices. The company’s market share in the U.S. has decreased to approximately 50% in Q3 2024 from 58% in Q3 2023.
Future Outlook
Moving forward, Amarin aims to enhance revenue through the expansion of VASCEPA sales in international markets and the optimization of its licensing agreements. The company also plans to continue focusing on obtaining pricing reimbursements and launching commercial operations in remaining European markets.
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Article updated on 8 Nov 2024
Resources:
- Amarin Corporation plc (AMRN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amarin Corporation plc (AMRN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amarin Corporation plc (AMRN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.