Amarin Announces Q2 2024 Financial Results and Business Update

Amarin Corporation plc (NASDAQ:AMRN) has released its financial results for the second quarter ending June 30, 2024, and provided a comprehensive business update. Aaron Berg, newly appointed CEO and President, has articulated a clear strategy focusing on operational excellence and expanding the impact of VASCEPA/VAZKEPA on global cardiovascular health.

Key Highlights:
- Aaron Berg has officially taken over as President and CEO.
- Amarin’s partner EDDINGPHARM gained regulatory approval for VASCEPA in China for cardiovascular risk reduction.
- The European Patent Office (EPO) granted a new patent for VAZKEPA, extending its exclusivity until 2039.
- National reimbursement for VAZKEPA was secured in Portugal and Greece, with an exclusive marketing agreement established with Vianex S.A. in Greece.
- The company has achieved $50 million in annual savings from a workforce reduction announced in July 2023.
- A major national pharmacy benefit manager (PBM) in the U.S. has stopped covering VASCEPA as the exclusive icosapent ethyl product, effective July 1, 2024.
- New data from the REDUCE-IT outcomes trial was presented at the American College of Cardiology’s Annual Scientific Session & Expo.

Financial Performance:
For the second quarter ending June 30, 2024, Amarin reported total net revenue of $67.5 million, a 16% decrease from $80.2 million in the same period of 2023. The decline was largely due to reduced net selling prices in the U.S. because of generic competition. Net product revenue fell by 27% to $47.5 million. U.S. net product revenue was $43.8 million, European net product revenue was $3.5 million, and Rest of World (RoW) net product revenue was $0.2 million.

Licensing and royalty revenue for the quarter was $20 million, which includes a $15 million milestone payment due to regulatory approval in China and $4 million in non-cash payment related to prior partnership milestones. This compared to $15 million in licensing and royalty revenue for the same quarter in 2023.

Cost of goods sold for Q2 2024 was $24.7 million, down from $37.5 million in Q2 2023. Overall gross margin on net product revenue improved to 48% from 42%, and excluding a Q2 2023 inventory restructuring charge, gross margin was 64%.

Selling, general, and administrative expenses for Q2 2024 were $38.5 million, down from $51 million in Q2 2023, primarily due to a restructuring plan enacted in July 2023. Research and development expenses for the quarter also decreased to $4.7 million from $5.6 million in the same period of 2023.

The company reported a net income of $1.5 million for the three months ending June 30, 2024, which includes $4.4 million in non-cash stock-based compensation. This is a significant improvement from a $17.6 million net loss in Q2 2023. Excluding non-cash stock-based compensation and restructuring expense, the non-GAAP adjusted net income for Q2 2024 was $5.9 million, compared to $8.6 million in the same period of 2023. The company’s cash and investments stood at $306.7 million as of June 30, 2024.

Share Repurchase Program:
Amarin announced a share repurchase program in January 2024 to buy back up to $50 million of its ordinary shares in the form of American Depository Shares (ADS). The company received the necessary approvals by May 2024 but has yet to begin repurchasing shares, monitoring business and market conditions.

2024 Financial Outlook:
Amarin continues to focus on reducing operating expenses and managing its cash position. The $50 million annual savings from the workforce reduction in July 2023 contribute to a stable financial outlook. The company believes that its current cash and investments are sufficient to support ongoing operations. The emphasis remains on preserving cash and investing prudently to accelerate revenue growth in Europe and maximize cash generation in the U.S. and other markets.

Amarin Corporation remains dedicated to improving cardiovascular health globally through the strategic management of its flagship product, VASCEPA/VAZKEPA, and robust financial oversight.