Amarin Extends Cash Gains as Revenue Slides
Cash reached $314.6 million as the drugmaker generated positive cash flow for a third consecutive quarter.
Cardiovascular-drug maker Amarin Corp. plc (AMRN) reported a 42% decline in second-quarter revenue as lower product sales and the absence of a prior-year licensing payment outweighed growing demand for its cardiovascular medicines.
Revenue fell to $42.2 million from $72.7 million a year earlier, when Amarin received a $25 million upfront payment from Recordati. Product revenue declined 16%, while licensing and royalty revenue dropped 88%. The quarter extended a sequential slide from $49.7 million in the third quarter of 2024 to $49.2 million in the fourth quarter, $45.1 million in the first quarter of 2025 and $42.2 million in the latest period.
U.S. product revenue fell 12% to $32.2 million even as branded VASCEPA prescriptions rose 14%. The divergence was due to generic competition and pressure on net pricing. Its share of the U.S. icosapent ethyl market increased to 48% from 43% a year earlier, though it remained below the greater-than-50% level reported at the end of 2024.
Demand across Amarin’s global partner network rose 59%, including 69% growth in Europe and a 90% increase in year-to-date volume in China. European product revenue declined 17% to $5.4 million as the company shifted from direct sales to its partnership with Recordati, while rest-of-world product revenue fell 61% to $1.4 million because of partner purchasing and shipment timing. VASCEPA and VAZKEPA were commercially available in 22 countries at quarter-end, with Recordati’s European commercialization footprint expanding to 11 countries from 10 in the prior quarter.
Gross profit fell about 70% to $15.0 million, and gross margin narrowed to roughly 36% from 69% as cost of goods sold increased 22%. Operating expenses declined 59% to $27.0 million, reflecting a 43% reduction in selling, general and administrative costs and the absence of most prior-year restructuring charges.
The operating loss narrowed 25% from a year earlier to $12.0 million, though the operating margin weakened to negative 28% from negative 22% because revenue contracted faster than expenses. The margin also deteriorated from negative 25% in the first quarter and negative 13% in the fourth quarter of 2024. Net loss narrowed 46% to $7.7 million and improved sequentially from $10.5 million.
Amarin completed its $70 million annual cost-savings program during the quarter, after realizing about half of the savings by the end of 2024. Restructuring charges declined to $40,000 from $22.8 million a year earlier, while the quarter included $6.3 million of litigation-related charges that the company excluded from non-GAAP earnings.
Inventory declined $19.5 million during the quarter to $164.1 million, releasing working capital as Amarin moved further into its partnered international model. The company expects cash at the end of 2025 to stand approximately 10% above the $302.6 million held a year earlier and maintained its expectation for positive full-year cash flow.