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Amarin (AMRN) Dips 16% on Layoff Plan & Preliminary Sales Miss
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Amarin Corporation (AMRN - Free Report) announced that it has started an organizational restructuring plan to strengthen its existing cash runway and curb cash burn.
To achieve these objectives, Amarin will reduce its existing workforce. This includes around 30% headcount reduction in non-sales positions and trimming its existing U.S. sales force.
The company intends to redesign its commercial infrastructure in Europe to better align with the pricing and reimbursement status for its sole marketed drug Vazkepa (icosapent ethyl). Amarin has been facing trouble gaining individual reimbursements for Vazkepa in multiple European countries.
The above plans are expected to help Amarin save around $40 million annually in operating expenses.
Management also intends to work on existing partnerships in key international markets like Australia and Canada and explore additional partnerships to boost its revenue-generating capabilities.
In addition, Amarin recorded preliminary product revenues of around $65 million during second-quarter 2023, missing the Zacks Consensus Estimate and our model estimate of $77.5 million and $77.2 million, respectively. In fact, the company generated positive cash flow of $9 million during the quarter. Per management, the cash and cash equivalents as of at the end of June 2023 stand at nearly $313 million.
Shares of Amarin lost 16.1% in after-market trading following the above news announcements. Investors were likely not impressed as the company significantly missed second-quarter product revenue estimates.
In the year so far, the stock has gained 18.2% against the industry’s 9.0% fall.
Image Source: Zacks Investment Research
Nearly all of the revenues are generated by Amarin from the product sales of its sole marketed drug, Vascepa(icosapent ethyl). Vascepa was initially approved by the FDA in 2012 as an adjunct to diet to reduce TG levels in adult patients with severe hypertriglyceridemia levels (≥ 500 mg/dL). Amarin lost patent protection for Vascepa in 2021. Since then, the drug has been facing generic competition in the United States.
Vascepawas subsequently approved in the United States in 2019 to reduce risk of cardiovascular (“CV”) events adult statin-treated patients at high CV risk with elevated triglycerides (“TG”) levels (≥ 150 mg/dL). The drug was approved for a similar indication in Europe in 2021 where it is marketed under the trade name Vazkepa.
Prior to this recent announcement, Amarin did not issue revenue guidance for 2023 due to the generic competition for Vascepa in the United States and challenges in achieving market access reimbursement for the drug in Europe.
Amarin is currently pursuing commercialization in the CV risk reduction indication and aims to establish itself as a diversified cardiometabolic player.
Amarin’s growth is solely dependent on the prospects of Vascepa/Vazkepa. Although the company is looking to expand in other countries, generic competition for Vascepa’s hypertriglyceridemia indication in the United States is rising. Currently, multiple generic versions of Vascepa are available in the country. Any potential launch of new Vascepa generics will worsen the scenario. A potential failure of Amarin to create sufficient awareness for Vascepa’s CV risk reduction indication may induce further erosion of the drug’s sales going forward, which is a major concern.
This is the second restructuring plan undertaken by Amarin since the past year. In June 2022, Amarin implemented a comprehensive cost and organizational restructuring plan addressing the rising generic competition for Vazkepa in the United States. The company started to witness the benefits of this restructuring program in third-quarter 2022.
In the past 60 days, estimates for Erasca’s 2023 loss per share have narrowed from $1.34 to $1.29. In the same period, the loss per share estimate for 2024 has improved from $1.71 to $1.54. Shares of Erasca have declined 39.2% in the year-to-date period.
Earnings of Erasca beat estimates in each of the last four quarters, witnessing an earnings surprise of 12.89%, on average. In the last reported quarter, Erasca’s earnings beat estimates by 26.67%.
In the past 60 days, estimates for Omega Therapeutics’ 2023 loss per share have narrowed from $2.18 to $2.05. During the same period, the loss estimates per share for 2024 have improved from $2.22 to $2.01. In the year so far, shares of Omega Therapeutics have lost 3.9%.
Earnings of Omega Therapeutics beat estimates in two of the last four quarters, missed the mark on one occasion while meeting the mark on another. On average, the company witnessed an earnings surprise of 8.24%. In the last reported quarter, Omega Therapeutics’earnings beat estimates by 21.88%.
In the past 60 days, estimates for Theseus Pharmaceuticals’ 2023 loss per share have narrowed from $1.58 to $1.36. During the same period, the loss estimates per share for 2024 have improved from $1.93 to $1.50. Year to date, shares of Theseus Pharmaceuticals have declined 43.4%.
Earnings of Theseus Pharmaceuticals beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 6.07%, on average. In the last reported quarter, Theseus Pharmaceuticals’ earnings beat estimates by 19.05%.
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Amarin (AMRN) Dips 16% on Layoff Plan & Preliminary Sales Miss
Amarin Corporation (AMRN - Free Report) announced that it has started an organizational restructuring plan to strengthen its existing cash runway and curb cash burn.
To achieve these objectives, Amarin will reduce its existing workforce. This includes around 30% headcount reduction in non-sales positions and trimming its existing U.S. sales force.
The company intends to redesign its commercial infrastructure in Europe to better align with the pricing and reimbursement status for its sole marketed drug Vazkepa (icosapent ethyl). Amarin has been facing trouble gaining individual reimbursements for Vazkepa in multiple European countries.
The above plans are expected to help Amarin save around $40 million annually in operating expenses.
Management also intends to work on existing partnerships in key international markets like Australia and Canada and explore additional partnerships to boost its revenue-generating capabilities.
In addition, Amarin recorded preliminary product revenues of around $65 million during second-quarter 2023, missing the Zacks Consensus Estimate and our model estimate of $77.5 million and $77.2 million, respectively. In fact, the company generated positive cash flow of $9 million during the quarter. Per management, the cash and cash equivalents as of at the end of June 2023 stand at nearly $313 million.
Shares of Amarin lost 16.1% in after-market trading following the above news announcements. Investors were likely not impressed as the company significantly missed second-quarter product revenue estimates.
In the year so far, the stock has gained 18.2% against the industry’s 9.0% fall.
Image Source: Zacks Investment Research
Nearly all of the revenues are generated by Amarin from the product sales of its sole marketed drug, Vascepa(icosapent ethyl). Vascepa was initially approved by the FDA in 2012 as an adjunct to diet to reduce TG levels in adult patients with severe hypertriglyceridemia levels (≥ 500 mg/dL). Amarin lost patent protection for Vascepa in 2021. Since then, the drug has been facing generic competition in the United States.
Vascepawas subsequently approved in the United States in 2019 to reduce risk of cardiovascular (“CV”) events adult statin-treated patients at high CV risk with elevated triglycerides (“TG”) levels (≥ 150 mg/dL). The drug was approved for a similar indication in Europe in 2021 where it is marketed under the trade name Vazkepa.
Prior to this recent announcement, Amarin did not issue revenue guidance for 2023 due to the generic competition for Vascepa in the United States and challenges in achieving market access reimbursement for the drug in Europe.
Amarin is currently pursuing commercialization in the CV risk reduction indication and aims to establish itself as a diversified cardiometabolic player.
Amarin’s growth is solely dependent on the prospects of Vascepa/Vazkepa. Although the company is looking to expand in other countries, generic competition for Vascepa’s hypertriglyceridemia indication in the United States is rising. Currently, multiple generic versions of Vascepa are available in the country. Any potential launch of new Vascepa generics will worsen the scenario. A potential failure of Amarin to create sufficient awareness for Vascepa’s CV risk reduction indication may induce further erosion of the drug’s sales going forward, which is a major concern.
This is the second restructuring plan undertaken by Amarin since the past year. In June 2022, Amarin implemented a comprehensive cost and organizational restructuring plan addressing the rising generic competition for Vazkepa in the United States. The company started to witness the benefits of this restructuring program in third-quarter 2022.
Amarin Corporation PLC Price
Amarin Corporation PLC price | Amarin Corporation PLC Quote
Zacks Rank & Other Stocks to Consider
Amarin currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the overall healthcare sector include Erasca (ERAS - Free Report) , Omega Therapeutics (OMGA - Free Report) and Theseus Pharmaceuticals , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Erasca’s 2023 loss per share have narrowed from $1.34 to $1.29. In the same period, the loss per share estimate for 2024 has improved from $1.71 to $1.54. Shares of Erasca have declined 39.2% in the year-to-date period.
Earnings of Erasca beat estimates in each of the last four quarters, witnessing an earnings surprise of 12.89%, on average. In the last reported quarter, Erasca’s earnings beat estimates by 26.67%.
In the past 60 days, estimates for Omega Therapeutics’ 2023 loss per share have narrowed from $2.18 to $2.05. During the same period, the loss estimates per share for 2024 have improved from $2.22 to $2.01. In the year so far, shares of Omega Therapeutics have lost 3.9%.
Earnings of Omega Therapeutics beat estimates in two of the last four quarters, missed the mark on one occasion while meeting the mark on another. On average, the company witnessed an earnings surprise of 8.24%. In the last reported quarter, Omega Therapeutics’earnings beat estimates by 21.88%.
In the past 60 days, estimates for Theseus Pharmaceuticals’ 2023 loss per share have narrowed from $1.58 to $1.36. During the same period, the loss estimates per share for 2024 have improved from $1.93 to $1.50. Year to date, shares of Theseus Pharmaceuticals have declined 43.4%.
Earnings of Theseus Pharmaceuticals beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 6.07%, on average. In the last reported quarter, Theseus Pharmaceuticals’ earnings beat estimates by 19.05%.