8-K: Amarin Announces Q4 2024 Financial Results and 1-for-20 ADS Reverse Split to Maintain Nasdaq Listing

Amarin reports Q4 2024 revenue of $62.3 million and announces a 1-for-20 reverse split of its American Depositary Shares (ADS) to maintain its Nasdaq listing.

Summary

• Amarin Corporation plc announced its Q4 2024 financial results and a 1-for-20 reverse split of its American Depositary Shares (ADS).
• Q4 2024 total revenue was $62.3 million, a 17% decrease compared to $74.7 million in Q4 2023.
• Operating expenses decreased by 18% to $43.0 million.
• The company's cash position at the end of 2024 was $294.2 million.
• Amarin is implementing a 1-for-20 ADS ratio change to maintain its Nasdaq listing, expected to be effective on or about April 11, 2025.
• The company generated over $200 million in revenue in 2024.
• VASCEPA/VAZKEPA has been launched in six additional global markets, including Italy, China, and Australia.
• The company reaffirms its belief that current cash and investments and other assets are adequate to support continuing operations for the foreseeable future.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the company faces challenges with revenue decline and net losses, it is taking steps to address these issues, such as cost optimization and expanding into new markets. The ADS ratio change is a necessary measure to maintain the Nasdaq listing.

Positives

• Operating expenses decreased by 18% to $43.0 million in Q4 2024, reflecting cost optimization efforts.
• European net product revenue increased to $4.0 million in Q4 2024, compared to $1.5 million in Q4 2023.
• Rest of World (RoW) net product revenue increased to $11.9 million in Q4 2024, compared to $4.2 million in Q4 2023.
• National reimbursement for VAZKEPA was secured in late February in Austria; as of April 1, 2025, VAZKEPA will be included in Austria's Code of Reimbursement (EKO).
• Two of Amarin's partners launched in cardiovascular risk reduction, EddingPharm in China and CSL Seqirus in Australia.
• In 2024, a total of 45 additional publications including abstracts, posters, and manuscripts were presented or published that, both individually and in aggregate, helped to advance an ever-broadening understanding of the science and value of icosapent ethyl and EPA.

Negatives

• Total net revenue for Q4 2024 decreased by 17% to $62.3 million compared to $74.7 million in Q4 2023.
• U.S. net product revenue decreased to $44.2 million in Q4 2024 compared to $64.9 million in Q4 2023, driven by generic competition and a reduction in volume.
• The company reported a net loss of $48.6 million for Q4 2024, compared to a net loss of $5.8 million for Q4 2023.
• Cash and investments decreased to $294.2 million as of December 31, 2024, compared to $320.7 million as of December 31, 2023.

Risks

• The company faces generic competition in the U.S. market, impacting revenue.
• The company's ability to maintain its Nasdaq listing is uncertain, despite the planned ADS ratio change.
• Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.
• The company's future performance depends on its ability to expand access and reimbursement for VAZKEPA in global markets.
• The company's forward-looking statements do not reflect the potential impact of significant transactions the company may enter into, such as mergers, acquisitions, dispositions, joint ventures or any material agreements that Amarin may enter into, amend or terminate.

Future Outlook

Amarin is committed to capitalizing on the European market, efficiently generating revenue and maximizing cash generation in the U.S., and from the RoW income stream, while tightly managing operating expenses and cash position; the company believes current cash and investments are adequate to support continuing operations for the foreseeable future.

Management Comments

• Since taking on the role of CEO of Amarin last year, I have worked with our leadership team and the Board of Directors to identify opportunities to leverage our unique assets, skills and resources to drive value, said Aaron Berg, President & CEO, Amarin.
• In 2024, while still progressing with the early launch in markets outside the U.S. and despite a dynamic generic market in the U.S., we generated more than $200 million in revenue and ended the year with nearly $300 million in cash and no debt -all measures exemplifying the strength and resilience of our franchise and the impact of our disciplined approach to capital deployment, said Aaron Berg.
• As a publicly traded company, there is considerable value in maintaining our Nasdaq listing, said Aaron Berg.

Industry Context

Amarin operates in the cardiovascular disease management market, facing competition from generic versions of VASCEPA in the U.S. and working to expand access to VAZKEPA in Europe and other global markets; the company is also navigating the challenges of maintaining its Nasdaq listing.

Comparison to Industry Standards

• It is difficult to compare Amarin's performance directly to industry standards without specific competitor data.
• However, the decrease in revenue due to generic competition is a common challenge faced by pharmaceutical companies.
• Amarin's efforts to expand in Europe and RoW markets align with industry trends of seeking growth in international markets.
• The company's focus on cost optimization is also a common strategy in the pharmaceutical industry to maintain profitability.

Stakeholder Impact

• Shareholders will be affected by the ADS ratio change, which aims to maintain the Nasdaq listing.
• Employees may be impacted by ongoing cost optimization efforts.
• Patients may benefit from expanded access to VASCEPA/VAZKEPA in new markets.
• Suppliers and partners may be affected by the company's financial performance and strategic decisions.

Next Steps

• Amarin will continue to advance commercialization and pricing and reimbursement efforts across European markets.
• Amarin and its partners will continue to advance regulatory processes in seven additional RoW markets.
• The company will support the presentation of additional data at ACC.25.
• The company will effect the ADS Ratio Change on or about April 11, 2025.

Key Dates