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Amarin Corporation Plc (AMRN)
:AMRN
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Amarin
(NASDAQ:AMRN)
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Rating:53Neutral
Price Target:
$19.00
▼(-6.17% Downside)
Amarin's stock score is primarily influenced by its financial challenges, including declining revenues and negative cash flows. While technical indicators show strong momentum, overbought conditions could lead to a pullback. The earnings call provided a positive outlook with strategic initiatives, but U.S. market challenges remain a concern.
Positive Factors
Strategic Partnerships
The partnership with Recordati enhances Amarin's market penetration in Europe, providing a structured royalty stream and sales milestones, which can drive long-term revenue growth and market expansion.
Cost Savings Initiative
The cost-saving initiative is aimed at improving operational efficiency and profitability, which can lead to positive cash flow and financial stability over the medium term.
Global Expansion
Regulatory approvals in new markets like South Korea and growth in Europe and other regions enhance Amarin's global footprint, supporting long-term revenue diversification and market presence.
Negative Factors
Declining Revenue
The decline in revenue highlights challenges in maintaining growth and profitability, which could impact long-term financial health if not addressed through strategic initiatives.
Negative Cash Flow
Negative cash flow indicates challenges in cash generation from operations, potentially limiting the company's ability to invest in growth and manage financial obligations effectively.
U.S. Market Challenges
The decline in U.S. revenue due to pricing pressure and generic competition poses a challenge to maintaining market share and profitability in a key market segment.
Amarin (AMRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.19M
Dividend YieldN/A
Average Volume (3M)91.78K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-16.92%
EPS Growth-207.34%
CountryUS
Employees275
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.03
Shares Outstanding20,682,775
10 Day Avg. Volume103,188
30 Day Avg. Volume91,775
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)8.20
Price to Sales (P/S)17.44
P/FCF Ratio-128.50
Enterprise Value/Market Cap0.11
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit0.54
Enterprise Value/Ebitda-0.46
Forecast
1Y Price Target
$10.00Price Target Upside-50.62% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Amarin's earnings call highlighted strategic partnerships, cost-saving initiatives, and global expansion efforts, indicating a positive outlook for future growth. However, challenges in the U.S. market due to pricing pressure and revenue decline were noted. Overall, the strategic moves and financial stability suggest a positive sentiment.Q2-2025 Updates
Positive Updates
Recordati Partnership
Amarin entered into a long-term licensing and supply agreement with Recordati to accelerate VAZKEPA commercialization across Europe. This partnership is expected to increase patient penetration in Europe and result in benefits through a structured royalty stream and sales milestones.
Cost Savings Initiative
Amarin announced a global restructuring expected to save approximately $70 million in operating expenses over the next 12 months.
Global Expansion and Regulatory Approvals
VASCEPA received regulatory approval in South Korea, bringing the total to 50 countries globally. Significant demand growth was reported in Europe (17% sequential increase in Q2 2025) and other markets like China (68% growth) and Australia (75% growth).
Strong Financial Position
Amarin reported nearly $300 million in cash, 0 debt, and sufficient on-hand inventory to meet global demand.
U.S. Market Stability
VASCEPA retained all major exclusive accounts through Q2 2025 with a stable market share at 43%. A large national payer moved VASCEPA back to exclusive status as of July 1, increasing market share to approximately 50% in July.
Negative Updates
U.S. Revenue Decline
Q2 2025 net product revenue in the U.S. was $36.5 million, a decline of 17%, reflecting continued pricing pressure from generics.
Pricing Pressure and Market Volatility
Pricing pressure remains volatile in the U.S., impacting net selling price. Despite maintaining exclusivity, the market environment is challenging due to generic competition.
Company Guidance
During Amarin Corporation's Q2 2025 conference call, significant guidance was provided regarding the company's strategic initiatives and financial outlook. Key highlights included a long-term licensing and supply agreement with Recordati, expected to enhance the commercialization of VAZKEPA across Europe and increase patient penetration, resulting in structured royalty streams and sales milestones. Operational restructuring aims to save approximately $70 million in operating expenses over the next 12 months, positioning the company towards positive cash flow. Financially, Q2 2025 net revenue stood at $72.7 million, with a net product revenue of $46.6 million, reflecting a 2% decrease due to U.S. pricing pressures, although offset by growth in Europe and other markets. The company ended the quarter with nearly $300 million in cash and no debt. Future strategies include exploring further strategic opportunities with Barclays as a financial adviser, emphasizing a focus on maximizing global potential and shareholder value.Amarin Financial Statement Overview
Summary
Amarin is facing significant financial challenges, with declining revenues, persistent losses, and negative cash flows. Despite a stable balance sheet with low leverage, profitability and cash flow generation need improvement.Income Statement
Amarin has experienced a significant decline in revenue over the past years, with TTM revenue at $193.24M compared to $306.91M in 2023 and $583.19M in 2021. The company is also reporting negative EBIT and net income, indicating ongoing losses. Gross profit margin has decreased significantly, indicating reduced profitability. These factors highlight challenges in maintaining revenue growth and profitability.38
Negative
Balance Sheet
The balance sheet shows a relatively strong equity position with a Debt-to-Equity ratio of approximately 0.02 in TTM, indicating low leverage. However, the Return on Equity is negative due to losses, and the equity ratio is about 69.37%, showcasing a strong reliance on equity funding. The balance sheet is stable, but profitability remains a concern.55
Neutral
Cash Flow
Amarin's cash flow position is concerning with negative operating cash flow and free cash flow in TTM. The operating cash flow to net income ratio is negative, indicating that the company is not generating cash from its operations. The negative free cash flow growth rate compared to prior periods reflects cash management challenges.45
Neutral
| 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
Positive
20.25
Price Trends
16.74
Positive
15.86
Positive
13.14
Positive
Market Momentum
0.98
Positive
65.15
Neutral
48.96
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 20.25 is above the 20-day moving average (MA) of 18.85, above the 50-day MA of 16.74, and above the 200-day MA of 13.14, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 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 65 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $550.50M | 5.43 | 376.09% | ― | 105.62% | ― | |
53 Neutral | $404.19M | -3.92 | -20.38% | ― | -16.92% | -207.34% | |
52 Neutral | $349.50M | ― | -55.91% | ― | -95.11% | 27.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $535.01M | ― | -68.67% | ― | ― | -50.83% | |
40 Underperform | $410.03M | ― | -69.65% | ― | ― | 10.36% | |
37 Underperform | $310.26M | ― | -65.91% | ― | ― | -32.74% |
* Healthcare Sector Average
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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.