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AMRN

Amarin NasdaqGM:AMRN Stock Report

Last Price

US$1.09

Market Cap

US$439.5m

7D

0%

1Y

-78.7%

Updated

02 Oct, 2022

Data

Company Financials +
AMRN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

AMRN Stock Overview

Amarin 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.

Amarin Corporation plc Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Amarin
Historical stock prices
Current Share PriceUS$1.09
52 Week HighUS$5.24
52 Week LowUS$1.04
Beta1.87
1 Month Change-9.92%
3 Month Change-24.31%
1 Year Change-78.67%
3 Year Change-92.42%
5 Year Change-68.95%
Change since IPO-99.82%

Recent News & Updates

Aug 22

Amarin down 21% on higher than normal daily volume

Amarin Corp. (NASDAQ:AMRN) shares are down 21% in Monday afternoon amid heavy volume. Average daily volume is ~3.7M. As of 245p ET, ~6.6M shares had traded hands. The company has been negatively impacted by generic versions of its fish oil pill Vascepa (icosapent ethyl), leading to declining sales of the brand version.

Aug 14

For Amarin, Something Wishful This Way Comes

Amarin has seen sales of its lone drug, Vascepa, plummet against generic competition. Famed activist investor Alex Denner has recently taken a sizeable stake in the company. If Denner can work his magic, investors could reap huge rewards. Absent a buyout in the near future, Amarin will likely continue to struggle mightily. In Ray Bradbury's classic novel Something Wicked This Way Comes, it's a brisk October day when a mysterious carnival appears in a small town, bringing with it intrigue and horror. That same horror and intrigue have gripped Amarin Corporation (AMRN) and its investors over the past 30 months, a period during which the stock has lost over 90% of its value on the heels of a painful court decision that stripped away an important U.S. patent protection for their lone drug, Vascepa. Now, as summer nears its finale and we approach those crisp October days once more, there is a reason for investors to be hopeful. That reason is famed activist biotech investor Alex Denner, backed by a 10-figure account through his investment firm, Sarissa Capital. Activist to the Rescue? Denner comes from the Carl Icahn investing tree and sports a PhD from Yale University, along with a fierce reputation and a deep list of industry connections. Last November, Sarissa took a 6% stake in Amarin, making it Denner's sixth largest position and stirring talks of a potential buyout. There is precedent for such moves under Denner's influence, such as The Medicines Company, Ariad, and Bioverativ. However, since buying into Amarin, Denner has seen the share price continue to decline while Vascepa steadily loses market share to generic competitors and Amarin burns through their cash pile attempting to establish a sales force in Europe. Revenue Struggles When you look at the fundamentals here, they're a mess. In the recently reported second quarter. Amarin lost nine cents per share on $94 million in revenue, representing a decline of 39% from the same quarter last year. For the full year, the sales range should be $325-375 million, down from their peak of $600 million in 2020. Cash on hand totaled $650 million at the beginning of 2020, but it now stands at half of that, an amount the company ominously notes in its quarterly report should sustain it for the next 12 months. Revenues have declined from over $150 million per quarter in 2020 to less than $100 million per quarter, and they continue to slide. European sales, where the company received marketing authorization in February 2021, have been a slow grind with no signs of growth over a year into their launch there. In the United States, no fewer than three companies are selling generic versions of Vascepa, while generic Lovaza - consisting of a mixture of omega 3s - has actually grown in sales since Vascepa received an expanded label from the FDA in 2019. More Struggles Throwing further shade on the operation is the persistent effort of Cleveland Clinic cardiologist Dr. Steven Nissen, who has vociferously questioned the mineral oil placebo used in Amarin's REDUCE-IT trial, the results of which supported a new FDA-approved indication for Vascepa to prevent cardiovascular disease in certain patients. Nissen raises the specter that the placebo group was negatively impacted by taking mineral oil and that the difference in the two groups is not attributable to the benefits of Vascepa, but rather to harm caused by mineral oil. Such rationale flies in the face of scientific reason, and a unanimous AdCom vote in support of the expanded label for Vascepa should have been the end of the discussion. Yet almost four years later, Nissen and a few media outlets continue to hammer on the topic and attempt to sow doubt regarding Vascepa's efficacy. It's fair to wonder whether Nissen holds a grudge against Amarin because he oversaw a failed trial of another omega-3 drug that was attempting to compete with Vascepa. In any case, the ongoing efforts to discredit the drug have done nothing to help Amarin's cause. Amarin also continues to fight a legal battle for induced infringement of their CVD label, which in theory is off-limits to generic competition but in practice has seen doctors, insurers, and pharmacies routinely switch out Vascepa for a generic thousands of times. Although a judge determined that generic manufacturer Hikma had not done anything that amounted to induced infringement, he allowed a lawsuit against insurance provider HealthNet to move forward. That case offers a narrow hope of Amarin regaining some protection for their broader CVD label if insurance companies are found to be infringing by enticing patients to take the generic version based on the pricing tier. While novel from a legal standpoint, that case could take years to play out and the ramifications of any decision are uncertain. For long-term investors, the best scenario is that the company hands over the reins before any such litigation plays out. A Glimmer of Hope on the Technical Front The biotech sector is well-known as a volatile one where companies can quickly boom or bust. Amarin epitomizes those cycles, trading near $2 in mid-2018, then launching over $20 following the release of REDUCE-IT trial data that September. Four years later, the price has come full circle and the stock trades under $2 again. Even today's meager share price offers some technical hope, though. The stock just closed above its 50-day moving average for the first time in months, and it now eyes a tasty gap at 2.67, where it could meet the rapidly descending 200-day average as well. Absent any news around Alex Denner's plans, however, the stock could quickly retreat on its gains and re-test the 52-week low of 1.10. Year-to-date chart of AMRN (TradingView) Time for Amarin to Move On The bottom line is that Amarin has fought the good fight with Vascepa and lost. They have lost in court, in the media, and at the pharmacy. A drug with great promise is being squandered every day that it is under control of current management. The best - in fact, the only - hope for Amarin is for Alex Denner to wield his influence and spin proverbial straw into gold by locating a willing company to buy them out.

Shareholder Returns

AMRNUS BiotechsUS Market
7D0%0.4%-2.5%
1Y-78.7%-25.6%-23.2%

Return vs Industry: AMRN underperformed the US Biotechs industry which returned -25.6% over the past year.

Return vs Market: AMRN underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is AMRN's price volatile compared to industry and market?
AMRN volatility
AMRN Average Weekly Movement10.3%
Biotechs Industry Average Movement11.1%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: AMRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: AMRN's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989560Karim Mikhailhttps://www.amarincorp.com

Amarin 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.

Amarin Corporation plc Fundamentals Summary

How do Amarin's earnings and revenue compare to its market cap?
AMRN fundamental statistics
Market CapUS$439.49m
Earnings (TTM)-US$99.97m
Revenue (TTM)US$475.60m

0.9x

P/S Ratio

-4.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMRN income statement (TTM)
RevenueUS$475.60m
Cost of RevenueUS$118.90m
Gross ProfitUS$356.70m
Other ExpensesUS$456.68m
Earnings-US$99.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.25
Gross Margin75.00%
Net Profit Margin-21.02%
Debt/Equity Ratio0%

How did AMRN perform over the long term?

See historical performance and comparison