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Amarin (AMRN) Stock Down Despite Q2 Earnings & Revenues Beat
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Amarin Corporation plc (AMRN - Free Report) reported break-even quarterly earnings in second-quarter 2024 against the Zacks Consensus Estimate of a loss of 5 cents per share. The company recorded an adjusted loss of 4 cents per share in the year-ago quarter.
Total revenues were $67.5 million, which beat the Zacks Consensus Estimate of $46 million. However, revenues declined 16% from the year-ago quarter’s levels, owing to lower product revenues.
Despite the better-than-expected results, shares of Amarin were down 12.9% on Jul 31. Year to date, the stock has plunged 21.6% compared with the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues from Vascepa, the company’s sole marketed drug, in the second quarter, were $47.5 million, down 27.1% year over year.
U.S. product revenues from Vascepa totaled $43.8 million, declining 32.2% from the year-ago quarter’s level as rising generic competition continued to hurt sales volumes. The drug’s U.S. sales beat our model estimate of $32.1 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market totaled $3.5 million compared with $1.9 million reported in the previous quarter. Sales were driven by revenue growth in the United Kingdom and Spain, as well as shipments to partners in Greece and Israel.
Licensing and royalty revenues, comprising royalties from partners in the China region, came in at $20 million compared with $15 million in the year-ago period.
Selling, general and administrative expenses totaled $38.5 million, down almost 24.3% year over year. This downside was due to AMRN’s cost reduction and restructuring efforts.
In July 2023, Amarin implemented an organizational restructuring plan to strengthen its existing cash runway and curb cash burn. As a part of this restructuring, the company reduced its existing workforce and has made $50 million in annual savings.
Research and development expenses amounted to $4.7 million, down almost 16.1% year over year.
Amarin ended the second quarter with cash and investments of $306.7 million compared with $308.2 million reported in the quarter ended March 2024. The company believes that its current cash is enough to fund the ongoing operations and support continued operations, including any share repurchases.
Recent Updates
On the second-quarter conference call, management stated that a pharmacy benefit manager has moved Vascepa to a blocked status on its formulary, leaving a significant impact on the drug’s volume. As a result, AMRN’s revenues are expected to reduce during the second half of 2024.
This might have hurt investor's sentiments and resulted in the stock declining following the announcement of the news.
In June 2024, Amarin promoted Aaron Berg, its then vice president and president of the U.S. Business, as its new president and chief executive officer (CEO) following the resignation of its president and CEO, Patrick Holt.
Amarin Corporation PLC Price, Consensus and EPS Surprise
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.62 to $25.59. Earnings per share estimates for 2025 have improved from $27.00 to $28.32. Year to date, shares of UTHR have rallied 42.5%.
UTHR’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.41%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 49.5%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 48.7%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.
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Amarin (AMRN) Stock Down Despite Q2 Earnings & Revenues Beat
Amarin Corporation plc (AMRN - Free Report) reported break-even quarterly earnings in second-quarter 2024 against the Zacks Consensus Estimate of a loss of 5 cents per share. The company recorded an adjusted loss of 4 cents per share in the year-ago quarter.
Total revenues were $67.5 million, which beat the Zacks Consensus Estimate of $46 million. However, revenues declined 16% from the year-ago quarter’s levels, owing to lower product revenues.
Despite the better-than-expected results, shares of Amarin were down 12.9% on Jul 31. Year to date, the stock has plunged 21.6% compared with the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues from Vascepa, the company’s sole marketed drug, in the second quarter, were $47.5 million, down 27.1% year over year.
U.S. product revenues from Vascepa totaled $43.8 million, declining 32.2% from the year-ago quarter’s level as rising generic competition continued to hurt sales volumes. The drug’s U.S. sales beat our model estimate of $32.1 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market totaled $3.5 million compared with $1.9 million reported in the previous quarter. Sales were driven by revenue growth in the United Kingdom and Spain, as well as shipments to partners in Greece and Israel.
Licensing and royalty revenues, comprising royalties from partners in the China region, came in at $20 million compared with $15 million in the year-ago period.
Selling, general and administrative expenses totaled $38.5 million, down almost 24.3% year over year. This downside was due to AMRN’s cost reduction and restructuring efforts.
In July 2023, Amarin implemented an organizational restructuring plan to strengthen its existing cash runway and curb cash burn. As a part of this restructuring, the company reduced its existing workforce and has made $50 million in annual savings.
Research and development expenses amounted to $4.7 million, down almost 16.1% year over year.
Amarin ended the second quarter with cash and investments of $306.7 million compared with $308.2 million reported in the quarter ended March 2024. The company believes that its current cash is enough to fund the ongoing operations and support continued operations, including any share repurchases.
Recent Updates
On the second-quarter conference call, management stated that a pharmacy benefit manager has moved Vascepa to a blocked status on its formulary, leaving a significant impact on the drug’s volume. As a result, AMRN’s revenues are expected to reduce during the second half of 2024.
This might have hurt investor's sentiments and resulted in the stock declining following the announcement of the news.
In June 2024, Amarin promoted Aaron Berg, its then vice president and president of the U.S. Business, as its new president and chief executive officer (CEO) following the resignation of its president and CEO, Patrick Holt.
Amarin Corporation PLC Price, Consensus and EPS Surprise
Amarin Corporation PLC price-consensus-eps-surprise-chart | Amarin Corporation PLC Quote
Zacks Rank & Stocks to Consider
Amarin currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the healthcare sector are United Therapeutics Corporation (UTHR - Free Report) , Halozyme Therapeutics, Inc. (HALO - Free Report) and Repare Therapeutics Inc. (RPTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.62 to $25.59. Earnings per share estimates for 2025 have improved from $27.00 to $28.32. Year to date, shares of UTHR have rallied 42.5%.
UTHR’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.41%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 49.5%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 48.7%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.