Why Is Amarin Stock Trading Lower After Q4 Earnings?

Amarin Corporation Plc AMRN reported fourth-quarter 2023 revenues of $74.71 million, down from $90.2 million, beating the consensus of $63.81 million.

The 17% Y/Y decline in revenues was driven primarily by a decrease in the volume of VASCEPA sales to Amarin’s customers in the United States, which were adversely impacted by generic availability in the United States. 

U.S. net product revenue was $64.9 million, down $88 million a year ago. European net product revenue was $1.5 million, and the Rest of the World was $4.2 million, primarily from supply shipments to partner Edding.

The company almost reported a break-even, beating the consensus loss of $(0.03), but down from income of $0.02 a year ago.

“Our team is delivering operational momentum in the business. As previously announced in January, in Europe, we are showing early signs of progress, particularly in Spain and the U.K.; our U.S. business is continuing its IPE market leadership; and our Rest of World partners are advancing plans to maximize patient uptake,” said Patrick Holt, President & CEO of Amarin. 

Buyback: Amarin initiated a shareholder approval process to execute a share repurchase program of up to $50 million by the end of the second quarter 2024.

Outlook: Amarin continues to progress in reducing operating expenses and managing its cash position. It is on track to deliver $40 million of annual savings based on the reduction in force announced in July 2023. 

With the recent cash preservation initiatives, Amarin reiterates that current cash, investments, and other assets are adequate to support continued operations, including the share repurchase program. 

“We will continue to focus on cash preservation and prudently invest in the right opportunities which are value additive,” the company said.

Price Action: AMRN shares are down 17.8% at $1.09 on the last check Thursday.