Overview of Amarin’s Financial Performance

Amarin Corporation is a pharmaceutical company focused on commercializing and developing cardiovascular health therapies, with its lead product VASCEPA (icosapent ethyl). In 2024, Amarin reported total revenue of $228.6 million, a 26% decrease from 2023. This decline was driven primarily by a 28% drop in U.S. product revenue for VASCEPA, which fell to $166.7 million.

The decrease in U.S. sales was due to the impact of generic competition, a decline in sales volume, and an adjustment to Medicaid rebates. Despite the generic competition, Amarin remains confident in the global demand for VASCEPA and is focused on expanding access in international markets.

Outside the U.S., Amarin saw an increase in product revenue to $37.9 million, up from $11.4 million in 2023. This growth was driven by launches in additional European countries as well as increased sales to international partners. Licensing and royalty revenue also increased by 11% to $24 million.

Amarin’s gross margin on product sales was 28% in 2024, down from 50% in 2023. Excluding one-time charges related to inventory restructuring, the adjusted gross margin was 50% in 2024, down from 66% in 2023, primarily due to the decrease in net selling price in the U.S. market.

Revenue and Profit Trends

Amarin’s total revenue declined by 26% in 2024 compared to 2023, driven by a 28% drop in U.S. product revenue for VASCEPA. This decrease was due to the impact of generic competition, a decline in sales volume, and an adjustment to Medicaid rebates.

In the U.S. market, Amarin’s share of the icosapent ethyl market decreased to 53% in 2024 from 57% in 2023, as total prescriptions for the class declined by 2%. VASCEPA branded prescriptions specifically decreased by 9% during this period.

Despite the generic competition, Amarin remains confident in the global demand for VASCEPA and is focused on expanding access in international markets. Outside the U.S., Amarin saw an increase in product revenue to $37.9 million, up from $11.4 million in 2023, driven by launches in additional European countries and increased sales to international partners.

Amarin’s gross margin on product sales was 28% in 2024, down from 50% in 2023. Excluding one-time charges related to inventory restructuring, the adjusted gross margin was 50% in 2024, down from 66% in 2023, primarily due to the decrease in net selling price in the U.S. market.

Strengths and Weaknesses

Strengths:

• VASCEPA is the first and only FDA-approved therapy to reduce cardiovascular risk in high-risk patients with elevated triglyceride levels
• Amarin has secured regulatory approvals for VASCEPA/VAZKEPA in 49 countries, including the U.S. and 27 EU member states
• International sales are growing, with revenue from outside the U.S. increasing to $37.9 million in 2024
• Amarin has a strong pipeline of clinical data and publications supporting the use of VASCEPA

Weaknesses:

• Significant decline in U.S. product revenue due to generic competition, sales volume decline, and Medicaid rebate adjustments
• Gross margin decreased to 28% in 2024 due to the impact of generic competition and pricing pressure
• Amarin had to implement a restructuring program in 2023, resulting in a 30% reduction in its workforce
• Reliance on a single product, VASCEPA, leaves Amarin vulnerable to market changes and competition

Outlook and Future Prospects

Despite the challenges faced in the U.S. market, Amarin remains focused on expanding global access to VASCEPA. The company is continuing to advance its pricing and reimbursement activities to drive access in remaining geographies, as well as being the market leader in the U.S.

In Europe, Amarin has launched VAZKEPA in several countries and is working to secure additional reimbursement and market access. The company believes the European opportunity is significant, as VAZKEPA has 10 years of market protection and Amarin was recently issued a patent that extended exclusivity to 2039.

Amarin is also making progress in other international markets, such as China, where its partner Edding received approval for VASCEPA under the MARINE indication in 2023 and the REDUCE-IT indication in 2024. In Canada, Amarin’s partner HLS has obtained reimbursement from all major private and public payors, gaining access to a majority of eligible patients.

To position the company for the future, Amarin implemented a restructuring program in 2023 that resulted in a 30% reduction in its workforce. This move was aimed at aligning the organization with the new strategic focus on global expansion and cost optimization.

Looking ahead, Amarin will continue to evaluate all of its spending commitments and priorities based on its goal of getting VASCEPA to as many patients as possible around the world. The company remains confident in the global demand for VASCEPA and is committed to advancing its regulatory and commercial efforts in both existing and new markets.

Conclusion

Amarin faced significant challenges in 2024, with a 26% decline in total revenue driven by the impact of generic competition in the U.S. market. However, the company is making progress in expanding VASCEPA/VAZKEPA’s global reach, with growing sales in international markets and a robust pipeline of regulatory approvals and clinical data.

To position the company for the future, Amarin implemented a restructuring program in 2023 that reduced its workforce by 30%. The company remains focused on optimizing costs and driving access to VASCEPA/VAZKEPA in both existing and new markets around the world.

While the U.S. market continues to be a headwind, Amarin’s international growth opportunities and its commitment to advancing the clinical and commercial potential of VASCEPA/VAZKEPA suggest the company has a path forward to navigate the current challenges and deliver value for shareholders.