Amarin Corporation Reports 36% Decline in Revenue, Reduced Net Loss in Latest Quarter

Amarin Corporation PLC reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in total revenue, which decreased to $42.3 million from $66.1 million in the same quarter of 2023, marking a 36% drop. This decline was primarily driven by a substantial reduction in U.S. product revenue, which fell from $62.4 million to $30.6 million, attributed to increased generic competition and the loss of a major pharmacy benefit manager. For the nine months ended September 30, 2024, total revenue was $166.3 million, down from $232.2 million in the prior year, reflecting a 28% decrease.

Despite the revenue decline, Amarin reported a reduced net loss of $33.6 million for the nine months ended September 30, 2024, compared to a loss of $53.3 million for the same period in 2023. The operating loss for Q3 2024 was $25.2 million, slightly higher than the $21.5 million loss reported in Q3 2023. The company’s gross margin on product sales also decreased, from 44% in Q3 2023 to 38% in Q3 2024, primarily due to restructuring inventory charges.

Amarin's total current assets as of September 30, 2024, were reported at $650.2 million, a decrease from $724.9 million at the end of 2023. Cash and cash equivalents fell to $156.9 million, while short-term investments increased to $148.8 million. The company has no outstanding debt and reported total assets of $750.6 million.

Strategically, Amarin has undergone significant organizational restructuring, resulting in a 30% reduction in its workforce and an annual operating cost reduction of approximately $50 million. This restructuring included the elimination of its entire U.S. sales force, which may impact future revenue generation. The company is also involved in ongoing litigation related to antitrust claims concerning VASCEPA, its primary product, which has faced increased competition from generics since patent expirations.

In terms of product performance, VASCEPA's market share in the U.S. decreased from approximately 58% to 50% year-over-year, with branded prescriptions declining by 13%. However, product revenue from international markets, particularly Europe, showed improvement, increasing from $0.8 million in Q3 2023 to $4.3 million in Q3 2024.

Amarin continues to focus on obtaining pricing reimbursement for VAZKEPA in various international markets and plans to launch commercial operations in remaining European markets in 2024. The company believes its current cash and investments will be sufficient to fund operations for at least the next year, despite ongoing challenges in revenue generation and market competition.