Amarin Corporation plc (AMRN): Business Model Canvas [10-2024 Updated]

Discover how Amarin Corporation plc (AMRN) leverages its innovative business model to drive the success of VASCEPA, a prescription-grade omega-3 fatty acid. This blog post delves into the key components of their Business Model Canvas, highlighting crucial partnerships, activities, and value propositions that position Amarin as a leader in the cardiovascular market. Read on to explore how they engage with healthcare providers and patients, manage costs, and generate revenue from their groundbreaking product.

Amarin Corporation plc (AMRN) - Business Model: Key Partnerships

Collaborations with third-party companies for distribution

Amarin Corporation has established collaborations with various third-party companies to distribute its product, VASCEPA. In the three months ended September 30, 2024, Amarin recorded $6.9 million of product revenue from its collaboration partners, compared to $1.8 million during the same period in 2023. This demonstrates a significant increase in revenue from these partnerships, highlighting the importance of third-party collaborations in expanding market access.

Licensing agreements for international markets

Amarin has entered several licensing agreements to enhance its presence in international markets. For instance, in February 2023, Amarin signed an agreement with CSL Seqirus for pricing and reimbursement, commercialization, and distribution of VASCEPA in Australia and New Zealand. This agreement included an upfront payment of $0.5 million and potential milestone payments totaling approximately $12 million.

Additionally, Amarin's licensing revenue has seen an increase, with $21.8 million recognized during the nine months ended September 30, 2024, compared to $17.5 million for the same period in 2023, marking a 25% increase. This increase is primarily attributed to the recognition of milestone payments from previous agreements, including a $15 million milestone from Edding for regulatory approval in China.

Partnerships with wholesalers and pharmacies

Amarin sells VASCEPA predominantly through major wholesalers and several regional wholesalers, which in turn supply retail pharmacies. In the three months ended September 30, 2024, U.S. product revenue was $30.6 million, reflecting a significant decrease of 51% from $62.4 million in the same period of 2023. This decline is attributed to increased generic competition and the loss of a large national pharmacy benefit manager, which affected the coverage of VASCEPA.

The overall icosapent ethyl market in the U.S. decreased by 1% year-over-year, and Amarin's market share dropped from 58% to approximately 50%. Despite these challenges, partnerships with wholesalers remain crucial for distribution, as they facilitate the supply of VASCEPA to pharmacies, ensuring patient access to the medication.

Partnership Type	Details	Revenue Impact (USD)
Third-party Distribution	Revenue from collaborations increased from $1.8 million to $6.9 million.	$6.9 million (Q3 2024)
Licensing Agreements	Agreements with CSL Seqirus and Edding, including upfront and milestone payments.	$21.8 million (9M 2024)
Wholesalers	Sales through major wholesalers impacting overall revenue.	$30.6 million (Q3 2024)

Amarin Corporation plc (AMRN) - Business Model: Key Activities

Development and commercialization of VASCEPA

Amarin Corporation's primary product, VASCEPA (icosapent ethyl), has been a significant focus of its business model. In the nine months ended September 30, 2024, Amarin recorded product revenue, net, of $144.5 million, a decrease of 33% from $214.7 million in the same period in 2023. This decline was primarily attributed to a 41% decrease in U.S. sales due to increased generic competition.

As of September 30, 2024, VASCEPA's sales in the U.S. were reported at $122.5 million, down from $209.0 million in the prior year. The overall icosapent ethyl market in the U.S. saw a decrease in prescription levels by 1% year-over-year.

Internationally, VASCEPA generated $9.7 million in product revenue in the nine-month period ending September 30, 2024, compared to $1.9 million in 2023. The company has been actively pursuing commercialization in various countries, including China and Canada, through partnerships.

Clinical trials and research for new indications

Amarin has invested significantly in clinical trials to support the development of new indications for VASCEPA. The REDUCE-IT indication, which was approved in June 2024, was a key milestone, with associated milestone payments amounting to $15 million. The company recorded $19.4 million in licensing revenue during the nine months ended September 30, 2024, a substantial increase from $9.4 million in the same period in 2023.

Amarin's commitment to ongoing research is evident in its efforts to expand VASCEPA's use and address various cardiovascular conditions. The company is focused on regulatory approvals and market access strategies in line with its research findings.

Marketing and sales efforts in U.S. and abroad

Marketing and sales strategies have adapted due to the competitive landscape. In the nine months ended September 30, 2024, Amarin's selling, general, and administrative expenses were $115.3 million, down from $156.0 million in the previous year. This reflects a 26% reduction, primarily due to cost-cutting measures, including the elimination of the U.S. sales force.

The company has focused its marketing efforts on maintaining a strong presence in the U.S. while also expanding into European markets. In the third quarter of 2024, VASCEPA-branded prescriptions decreased by 13% compared to the same quarter in 2023. However, Amarin remains optimistic about the global demand for VASCEPA, with ongoing initiatives to enhance market access and pricing reimbursement strategies across various regions.

Activity	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
U.S. Product Revenue	30.6	62.4	-51%
International Product Revenue	4.3	0.8	437.5%
Licensing and Royalty Revenue	0.4	1.2	-61%

Amarin Corporation plc (AMRN) - Business Model: Key Resources

Intellectual property and patents for VASCEPA

Amarin Corporation holds a robust portfolio of intellectual property, particularly around its flagship product, VASCEPA (icosapent ethyl). The company has been granted multiple patents that protect the formulation, use, and methods of treatment associated with VASCEPA. As of 2024, the estimated remaining life of key U.S. patents extends into 2030, providing a competitive edge against potential generic competitors. The company has reported significant licensing revenue, with $19.4 million recognized during the nine months ended September 30, 2024, compared to $9.4 million for the same period in 2023.

Experienced personnel in R&D and marketing

Amarin’s workforce is a crucial asset, comprising highly skilled personnel in research and development (R&D) and marketing. The company had total operating expenses of $130.2 million for the nine months ended September 30, 2024, of which $14.9 million was allocated to R&D. The marketing team has been pivotal in promoting VASCEPA, which recorded net product revenue of $144.5 million for the same period. The company has a workforce that is strategically structured to support its commercialization efforts, ensuring both regulatory compliance and effective market penetration.

Supply chain relationships for API and manufacturing

Amarin has established critical relationships with multiple suppliers for the active pharmaceutical ingredient (API) required for VASCEPA. As of September 30, 2024, the company reported current inventory of $224 million, with long-term inventory at $74 million, reflecting its proactive approach to supply chain management. The company has contracts with FDA-approved manufacturers, ensuring a reliable supply of VASCEPA to meet market demand. However, Amarin acknowledges the risks associated with potential disruptions or changes in these relationships, which could materially affect its operations.

Key Resource	Description	Value/Impact
Intellectual Property	Patents for VASCEPA	Licensing revenue of $19.4 million (2024)
Experienced Personnel	Skilled workforce in R&D and marketing	R&D expenses of $14.9 million (2024)
Supply Chain	Contracts with suppliers for API	Current inventory of $224 million

Amarin Corporation plc (AMRN) - Business Model: Value Propositions

Prescription-grade omega-3 fatty acid with proven efficacy

Amarin Corporation's primary product, VASCEPA (icosapent ethyl), is a prescription-grade omega-3 fatty acid that has been clinically validated for its efficacy in reducing triglyceride levels in patients with severe hypertriglyceridemia. As of September 30, 2024, VASCEPA generated product revenue of $144.5 million for the nine-month period, down from $214.7 million in the same period of 2023. The product's therapeutic benefits are supported by robust clinical data, notably the REDUCE-IT trial, which demonstrated a significant reduction in cardiovascular events among high-risk patients.

Unique cardiovascular benefits supported by clinical data

The REDUCE-IT trial results, published in the New England Journal of Medicine, showed that patients taking VASCEPA had a 25% relative risk reduction in major cardiovascular events compared to a placebo. This unique value proposition positions VASCEPA as a critical therapeutic option in the cardiovascular market, distinguishing it from over-the-counter omega-3 products. The study's findings have been pivotal in establishing VASCEPA's value among cardiologists and healthcare providers.

Strong brand recognition in the cardiovascular market

Amarin has invested significantly in building the VASCEPA brand, resulting in strong recognition in the cardiovascular sector. As of September 30, 2024, VASCEPA accounted for approximately 66% of the total revenue generated by Amarin, highlighting its importance to the company’s financial health. Additionally, the company has engaged in strategic marketing efforts that have led to increased prescription rates, with the product being prescribed widely across various healthcare settings.

Financial Metric	Q3 2024	Q3 2023	Change (%)
Product Revenue (Net)	$41.9 million	$64.9 million	-35.4%
Licensing and Royalty Revenue	$446,000	$1.2 million	-61.3%
Total Revenue (Net)	$42.3 million	$66.1 million	-36.0%
Net Loss	$(25.1) million	$(19.3) million	+30.0%
Cash and Cash Equivalents	$157 million	$271 million	-42.0%

In summary, Amarin Corporation's value propositions are centered around the scientific validation of VASCEPA, its unique cardiovascular benefits, and the strong brand recognition it has cultivated within the healthcare community. These elements combine to create a compelling offer for both patients and healthcare providers, ensuring the product's competitive position in the market.

Amarin Corporation plc (AMRN) - Business Model: Customer Relationships

Direct engagement with healthcare professionals

Amarin Corporation engages directly with healthcare professionals through a specialized sales force, which has been significantly impacted by recent organizational changes. In 2024, the company reduced its total employee base by approximately 30%, eliminating all sales force positions in the U.S. However, a managed care and trade organization continues to support U.S. commercial efforts.

As of September 30, 2024, Amarin's product revenue from the U.S. was $30.6 million, down from $62.4 million in the same quarter of 2023, reflecting a decline in sales due to increased generic competition. The company's share of the icosapent ethyl market decreased to approximately 50%.

Patient education programs and support services

Amarin provides patient education programs to enhance awareness and understanding of VASCEPA among patients and healthcare providers. These initiatives are aimed at improving adherence to treatment and overall patient outcomes. The company recognizes the importance of education in driving product uptake, especially in light of the competitive landscape.

For the nine months ended September 30, 2024, total revenue netted $166.3 million, down from $232.2 million in 2023. This drop is attributed in part to the decline in patient prescriptions, which saw a decrease of 5% year-over-year.

Collaborations with healthcare payors for reimbursement

Amarin collaborates with healthcare payors to secure reimbursement for VASCEPA, which is crucial for patient access to the medication. The company has entered agreements with various payors to ensure that VASCEPA remains accessible despite the challenges posed by generic competition.

In 2024, the company recognized licensing and royalty revenue of $21.8 million, an increase of 25% from $17.5 million in 2023, largely due to milestone achievements related to international collaborations.

Metric	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%
Licensing and Royalty Revenue	$21.8 million	$17.5 million	+25%
Market Share of Icosapent Ethyl	50%	58%	-8%
VASCEPA-branded Prescriptions	Decrease of 13%	—	—

Amarin Corporation plc (AMRN) - Business Model: Channels

Direct sales to major wholesalers in the U.S.

Amarin primarily sells its product, VASCEPA, to three major wholesalers in the United States. For the nine months ended September 30, 2024, the company recorded U.S. product revenue of $122.5 million, a significant decrease from $209.0 million for the same period in 2023, reflecting a 41% decline in VASCEPA sales in the U.S. due to increased generic competition. The three major wholesalers accounted for approximately 29%, 34%, and 28% of gross product sales for the nine months ended September 30, 2024.

Distribution through pharmacies and mail-order providers

VASCEPA is also distributed through retail pharmacies and mail-order providers. The company sells to regional wholesalers and specialty pharmacy providers, which subsequently resell VASCEPA to retail pharmacies for patient dispensing. During the three months ended September 30, 2024, net product revenue from VASCEPA sales included adjustments for co-pay mitigation rebates provided to commercially insured patients. The overall icosapent ethyl market in the U.S. based on prescription levels reported by Symphony Health decreased by 1% for this period.

International sales through commercial partners

Amarin has established commercial partnerships for international distribution of VASCEPA. In the nine months ended September 30, 2024, the company reported product revenue of $12.3 million from collaboration partners, up from $3.9 million during the same period in 2023. The company recorded product revenue of $4.3 million in Europe for the three months ended September 30, 2024, compared to $0.8 million in 2023. Additionally, Amarin entered agreements with CSL Seqirus for distribution in Australia and New Zealand, and with Lotus Pharmaceuticals for distribution in South Korea and Southeast Asia, receiving upfront payments of $0.5 million and $0.3 million, respectively.

Channel	Revenue (9 Months Ended Sept 30, 2024)	Revenue (9 Months Ended Sept 30, 2023)	Key Partners
Direct Sales to Wholesalers (U.S.)	$122.5 million	$209.0 million	Major U.S. Wholesalers
Distribution through Pharmacies	Included in U.S. product revenue	Included in U.S. product revenue	Regional Wholesalers, Specialty Pharmacies
International Sales	$12.3 million	$3.9 million	CSL Seqirus, Lotus Pharmaceuticals

Amarin Corporation plc (AMRN) - Business Model: Customer Segments

Patients with High Cardiovascular Risk

Amarin Corporation primarily targets patients with high cardiovascular risk, particularly those with elevated triglycerides. According to the American Heart Association, approximately 47% of adults have elevated triglyceride levels, which can lead to severe cardiovascular complications.

In 2024, Amarin reported a significant market share in the icosapent ethyl segment, with VASCEPA capturing approximately 50% of the market based on prescription levels. Given the prevalence of cardiovascular diseases, this segment represents a substantial opportunity for Amarin to expand its user base.

Healthcare Providers, Including Cardiologists

Healthcare providers, specifically cardiologists, are crucial customer segments for Amarin. They not only prescribe VASCEPA but also play a significant role in educating patients about its benefits. As of September 30, 2024, Amarin's efforts to engage cardiologists have been reflected in their sales strategy, which focuses on direct outreach and educational initiatives.

In the first nine months of 2024, Amarin generated $144.5 million in net product revenue, a significant portion of which can be attributed to prescriptions written by cardiologists. This underscores the importance of building strong relationships with healthcare providers to maintain and grow market penetration.

Health Insurance Companies and Payors

Health insurance companies and payors are essential for Amarin's business model, as they determine the reimbursement levels for VASCEPA. Amarin has been actively working to negotiate favorable pricing and reimbursement terms to ensure broad access to the drug. As of September 30, 2024, Amarin experienced a $31.8 million decrease in U.S. net product revenue, largely influenced by changes in coverage from major pharmacy benefit managers (PBMs).

In 2024, Amarin's licensing and royalty revenue reached $21.8 million, indicating ongoing collaborations that enhance their market presence and reimbursement capabilities. This revenue stream highlights the strategic importance of partnerships with payors to secure coverage and reimbursement for their products.

Customer Segment	Key Metrics	Revenue Impact (2024)
Patients with High Cardiovascular Risk	Approx. 47% of adults with elevated triglycerides	Market share of 50% in icosapent ethyl segment
Healthcare Providers (Cardiologists)	Strong engagement through outreach and education	$144.5 million in net product revenue
Health Insurance Companies and Payors	Negotiated pricing and reimbursement terms	$21.8 million in licensing and royalty revenue

Amarin Corporation plc (AMRN) - Business Model: Cost Structure

R&D expenses related to new product development

Research and development (R&D) expenses for the three months ended September 30, 2024, were $4.5 million, compared to $5.1 million for the same period in 2023, marking a decrease of $0.6 million or 11%. For the nine months ended September 30, 2024, R&D expenses totaled $14.9 million, down from $16.4 million in the prior year, reflecting a reduction of $1.5 million or 9%. The breakdown of R&D expenses for the three months ended September 30, 2024, is as follows:

Expense Type	2024 (in thousands)	2023 (in thousands)
REDUCE-IT study and presentations	$124	$287
Fixed-dose combination	$0	$332
Regulatory filing fees and expenses	$548	$733
Non-clinical research activities	$669	$115
Internal staffing, overhead, and other	$2,330	$2,646
Non-cash stock-based compensation	$869	$992
Total R&D Expense	$4,540	$5,105

Manufacturing and quality assurance costs

Cost of goods sold (COGS), which includes manufacturing and quality assurance costs, was $26.0 million for the three months ended September 30, 2024, down from $36.2 million in the same period in 2023, a decrease of $10.2 million or 28%. For the nine months ended September 30, 2024, COGS was $75.4 million, compared to $111.8 million for the same period in 2023, representing a decrease of $36.4 million or 33%. The overall gross margin on product sales was 38% for the three months ended September 30, 2024, compared to 44% in the same period in 2023.

Marketing and sales expenses for promotional activities

Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2024, were $36.9 million, down from $45.5 million in 2023, representing a decrease of $8.6 million or 19%. The breakdown of selling expenses for the three months ended September 30, 2024, is as follows:

Expense Type	2024 (in thousands)	2023 (in thousands)
Selling expense	$18,777	$24,054
General and administrative expense	$14,298	$17,753
Non-cash stock-based compensation	$3,829	$3,650
Total SG&A Expense	$36,904	$45,457

For the nine months ended September 30, 2024, total SG&A expenses were $115.3 million, down from $156.0 million in 2023, a decrease of $40.7 million or 26%.

Amarin Corporation plc (AMRN) - Business Model: Revenue Streams

Product sales of VASCEPA in the U.S. and international markets

Amarin Corporation primarily generates revenue from the sales of VASCEPA, an FDA-approved prescription medication. For the three months ended September 30, 2024, Amarin reported product revenue, net, of $41.9 million, down from $64.9 million in the same period in 2023, reflecting a decrease of 36% year-over-year. The decline in revenue was largely attributed to a 51% decrease in U.S. sales, which amounted to $30.6 million compared to $62.4 million in the previous year.

In international markets, specifically Europe, product revenue netted $4.3 million in the same quarter, a significant increase from $0.8 million in 2023. Overall, for the nine months ending September 30, 2024, Amarin recorded total product revenue of $144.5 million, compared to $214.7 million for the same period in 2023, a 33% decline.

Period	U.S. Product Revenue (in millions)	International Product Revenue (in millions)	Total Product Revenue (in millions)
Q3 2024	$30.6	$4.3	$41.9
Q3 2023	$62.4	$0.8	$64.9
9M 2024	$122.5	$9.7	$144.5
9M 2023	$209.0	$1.9	$214.7

Licensing and royalty income from partnerships

Licensing and royalty revenue for Amarin showed an increase in the nine months ending September 30, 2024, totaling $21.8 million, compared to $17.5 million in the same period in 2023, marking a 25% increase. This increase was primarily driven by milestone payments recognized from various partnerships, including a $15.0 million milestone payment achieved in June 2024 for the REDUCE-IT indication approval in China.

The licensing agreements encompass upfront payments, milestone payments, and ongoing royalties based on sales performance. For instance, Amarin received an upfront payment of $0.5 million from CSL Seqirus for the commercialization of VASCEPA in Australia and New Zealand. Additionally, an upfront payment of $0.3 million was recognized from Lotus Pharmaceuticals for distribution rights in South Korea and Southeast Asia.

Licensing Partner	Upfront Payment (in millions)	Milestone Payments (in millions)
Edding	$15.0	$19.0
CSL Seqirus	$0.5	$8.0 (potential)
Lotus Pharmaceuticals	$0.3	Varies (based on performance)

Potential future revenues from new product indications

Amarin is actively pursuing additional product indications for VASCEPA, which may enhance its future revenue streams. The company is focused on obtaining pricing reimbursement and expanding into remaining European markets. The anticipated revenue from these efforts is contingent upon successful regulatory approvals and market penetration strategies. As of now, the company remains optimistic about extending the lifecycle of VASCEPA despite facing generic competition in the U.S..

In the context of market dynamics, the overall icosapent ethyl market in the U.S. has shown a slight decline, with Amarin's market share decreasing to approximately 50% as of September 30, 2024, down from 58% in the previous year. VASCEPA-branded prescriptions also experienced a decrease of 13% during the same period.

Article updated on 8 Nov 2024

Resources:

1. 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.
2. 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.