Amarin Corp PLC is a biopharmaceutical company focused on the commercialization and development of therapeutics to improve cardiovascular health and reduce cardiovascular risk. Its commercialized product includes Vascepa.
Performance Overview
Amarin Corp PLC (AMRN, Financial) reported total net revenue of $67.5 million for the second quarter of 2024, a 16% decrease from $80.2 million in the same period of 2023. This decline was primarily driven by a reduction in net selling price due to increased generic competition in the U.S. market. Net product revenue fell by 27% to $47.5 million from $65.2 million in Q2 2023.
Despite the revenue decline, Amarin achieved a net income of $1.5 million for Q2 2024, compared to a net loss of $17.6 million in Q2 2023. This improvement was largely due to a significant reduction in operating expenses, which decreased by 24% to $43.3 million from $56.6 million in the previous year.
Financial Achievements and Challenges
Amarin's cash position remains robust, with $306.7 million in cash and investments as of June 30, 2024. This strong capital foundation is crucial for the company's ongoing efforts to maximize the performance of Vascepa/Vazkepa globally.
However, the company faces challenges, including the loss of exclusive coverage for Vascepa by a large national pharmacy benefit manager (PBM) in the U.S., effective July 1, 2024. This change could impact future revenue streams.
Key Financial Metrics
| Financial Highlights ($ in millions) | 3 months ended June 30, 2024 | 3 months ended June 30, 2023 | % Change |
|---|---|---|---|
| Total Net Revenue | $67.5 | $80.2 | -16% |
| Operating Expenses | $43.3 | $56.6 | -24% |
| Cash | $306.7 | $313.0 | -2% |
Income Statement Highlights
Amarin's gross margin on net product revenue improved to 48% in Q2 2024 from 42% in Q2 2023. Excluding inventory restructuring charges, the gross margin was 64%. Selling, general, and administrative expenses decreased to $38.5 million from $51.0 million, reflecting the impact of the company's restructuring plan announced in July 2023.
Research and development expenses also saw a reduction, amounting to $4.7 million in Q2 2024 compared to $5.6 million in Q2 2023.
Commentary from Leadership
"As I begin in my new role as CEO of Amarin, my focus is clear: drive value by focusing on operational execution and performance while urgently evaluating opportunities to expand the impact of VASCEPA/VAZKEPA to benefit millions of patients worldwide. That is our commitment to patients, providers, employees and of course, shareholders." - Aaron Berg, President and CEO
Analysis and Outlook
Amarin's financial performance in Q2 2024 reflects both the challenges and opportunities the company faces. The decline in revenue due to generic competition underscores the competitive pressures in the pharmaceutical industry. However, the company's strong cash position and reduced operating expenses provide a solid foundation for future growth.
Looking ahead, Amarin's focus on expanding the market for Vascepa/Vazkepa, particularly in Europe and other international markets, will be critical. The recent regulatory approvals and reimbursement agreements in China, Portugal, and Greece are positive steps in this direction.
Investors will be closely watching how the company navigates the loss of exclusive PBM coverage in the U.S. and its efforts to drive revenue growth in new markets.
Explore the complete 8-K earnings release (here) from Amarin Corp PLC for further details.
