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Amarin's (AMRN) Q1 Earnings Top, Vascepa Sales Fall
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Amarin Corporation Plc (AMRN - Free Report) reported first-quarter 2023 adjusted earnings of 2 cents per share, which beat the Zacks Consensus Estimate and our model estimate of a loss of 1 cent per share. The company had recorded an adjusted loss of 6 cents per share in the year-ago quarter.
Adjusted earnings exclude non-cash stock-based compensation and restructuring expenses.
Total revenues were $86 million, which beat the Zacks Consensus Estimate and our model estimate of $83 million and $82.3 million, respectively. Revenues were down 9% from that recorded in the year-ago quarter.
The stock surged 16.5% in the year-to-date period against the industry’s 6.4% decline.
Image Source: Zacks Investment Research
Quarter in Details
U.S. product revenues from Vascepa,the company’s sole marketed drug, were $82.3 million, down 12% from the year-ago quarter’s level. Lower volumes were due to rising generic competition that hurt sales of Vascepa in the United States.
The drug’s sales in the country beat our model estimate of $79.3 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market were $0.4 million compared with $0.3 million in the previous quarter. Revenues in Europe were less than the company’s expectations.
International product revenues were $2 million compared with $1.5 million in the prior quarter. Amarin has secured regulatory approval for Vascepa in New Zealand and Israel.
The company is progressing in international markets with the recent partnership with CSL Seqirus. Under this partnership, CSL Seqirus in-licensed Vascepa from Amarin for market access and reimbursement efforts. The former is responsible for the distribution and commercial promotion of the drug across Australia and New Zealand.
In Europe, Amarin expects to get reimbursement decisions for Vascepa in most markets. It also anticipates launch of the drug in major European markets by the end of 2023. Early launches are currently underway in Sweden and Finland.
Licensing and royalty revenues totaled $1.3 million in the first quarter compared with $0.6 million in the year-ago period.
Royalty revenues were generated from sales of Vascepa, recorded by its partners in Canada, China and the Middle East. Upfront licensing fee from its partner in Australia and New Zealand also contributed to the same.
The company ended the quarter with cash and investments of $304.9 million compared with $310.6 million as of Dec 31, 2022.
Adjusted selling, general and administrative expenses (SG&A), excluding non-cash stock-based compensation, totaled $55.2 million, down 36% year over year.
Adjusted research and development (R&D) expenses (excluding non-cash stock-based compensation) amounted to $4.4 million, down 48% year over year. The decline in adjusted SG&A and R&D expenses was driven by the company’s comprehensive cost reduction and restructuring plans.
2023 Financial Outlook
The company continues to avoid revenue guidance for 2023 due to uncertainty related to the COVID-19 pandemic and generic competition for its sole marketed drug, Vascepa, in the United States. The avoidance can also be attributed to challenges in achieving market access reimbursement for the drug in Europe.
Amarin has lowered its operating expense guidance for 2023 to $270-$285 million from $290-$305 million, reflecting additional identified cost savings along with the timing of reimbursements.
Loss per share estimates for Ocuphire Pharma have narrowed from 29 cents to 24 cents for 2023 and from 86 cents to 81 cents for 2024 in the past 60 days. The company’s shares have surged 56.4% in the year-to-date period. Ocuphire’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 23.85%.
Loss per share estimates for Allogene have narrowed from $2.56 to $2.44 for 2023 in the past 60 days. Shares of ALLO have plunged 15% in the year-to-date period. Allogene’s earnings beat estimates in each of the last four quarters, the average surprise being 8.33%.
Loss per share estimates for Arcus Biosciences have narrowed from $4.52 to $4.42 for 2023 and from $3.51 to $3.33 for 2024 in the past 60 days. Shares of RCUS have plunged 13.7% in the year-to-date period. Arcus Biosciences’ earnings outpaced estimates in two of the last four quarters, met the mark in one and missed in another, the average negative surprise being 48.83%.
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Amarin's (AMRN) Q1 Earnings Top, Vascepa Sales Fall
Amarin Corporation Plc (AMRN - Free Report) reported first-quarter 2023 adjusted earnings of 2 cents per share, which beat the Zacks Consensus Estimate and our model estimate of a loss of 1 cent per share. The company had recorded an adjusted loss of 6 cents per share in the year-ago quarter.
Adjusted earnings exclude non-cash stock-based compensation and restructuring expenses.
Total revenues were $86 million, which beat the Zacks Consensus Estimate and our model estimate of $83 million and $82.3 million, respectively. Revenues were down 9% from that recorded in the year-ago quarter.
The stock surged 16.5% in the year-to-date period against the industry’s 6.4% decline.
Image Source: Zacks Investment Research
Quarter in Details
U.S. product revenues from Vascepa,the company’s sole marketed drug, were $82.3 million, down 12% from the year-ago quarter’s level. Lower volumes were due to rising generic competition that hurt sales of Vascepa in the United States.
The drug’s sales in the country beat our model estimate of $79.3 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market were $0.4 million compared with $0.3 million in the previous quarter. Revenues in Europe were less than the company’s expectations.
International product revenues were $2 million compared with $1.5 million in the prior quarter. Amarin has secured regulatory approval for Vascepa in New Zealand and Israel.
The company is progressing in international markets with the recent partnership with CSL Seqirus. Under this partnership, CSL Seqirus in-licensed Vascepa from Amarin for market access and reimbursement efforts. The former is responsible for the distribution and commercial promotion of the drug across Australia and New Zealand.
In Europe, Amarin expects to get reimbursement decisions for Vascepa in most markets. It also anticipates launch of the drug in major European markets by the end of 2023. Early launches are currently underway in Sweden and Finland.
Licensing and royalty revenues totaled $1.3 million in the first quarter compared with $0.6 million in the year-ago period.
Royalty revenues were generated from sales of Vascepa, recorded by its partners in Canada, China and the Middle East. Upfront licensing fee from its partner in Australia and New Zealand also contributed to the same.
The company ended the quarter with cash and investments of $304.9 million compared with $310.6 million as of Dec 31, 2022.
Adjusted selling, general and administrative expenses (SG&A), excluding non-cash stock-based compensation, totaled $55.2 million, down 36% year over year.
Adjusted research and development (R&D) expenses (excluding non-cash stock-based compensation) amounted to $4.4 million, down 48% year over year. The decline in adjusted SG&A and R&D expenses was driven by the company’s comprehensive cost reduction and restructuring plans.
2023 Financial Outlook
The company continues to avoid revenue guidance for 2023 due to uncertainty related to the COVID-19 pandemic and generic competition for its sole marketed drug, Vascepa, in the United States. The avoidance can also be attributed to challenges in achieving market access reimbursement for the drug in Europe.
Amarin has lowered its operating expense guidance for 2023 to $270-$285 million from $290-$305 million, reflecting additional identified cost savings along with the timing of reimbursements.
Amarin Corporation PLC Price and EPS Surprise
Amarin Corporation PLC price-eps-surprise | Amarin Corporation PLC Quote
Zacks Rank and Stocks to Consider
Currently, Amarin has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Ocuphire Pharma (OCUP - Free Report) , Allogene Therapeutics (ALLO - Free Report) and Arcus Biosciences (RCUS - Free Report) . While Ocuphire Pharma sports a Zacks Rank #1 (Strong Buy), Allogene Therapeutics and Arcus Biosciences, both carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss per share estimates for Ocuphire Pharma have narrowed from 29 cents to 24 cents for 2023 and from 86 cents to 81 cents for 2024 in the past 60 days. The company’s shares have surged 56.4% in the year-to-date period. Ocuphire’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 23.85%.
Loss per share estimates for Allogene have narrowed from $2.56 to $2.44 for 2023 in the past 60 days. Shares of ALLO have plunged 15% in the year-to-date period. Allogene’s earnings beat estimates in each of the last four quarters, the average surprise being 8.33%.
Loss per share estimates for Arcus Biosciences have narrowed from $4.52 to $4.42 for 2023 and from $3.51 to $3.33 for 2024 in the past 60 days. Shares of RCUS have plunged 13.7% in the year-to-date period. Arcus Biosciences’ earnings outpaced estimates in two of the last four quarters, met the mark in one and missed in another, the average negative surprise being 48.83%.