Amarin Corporation (AMRN) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was $67.5M–$68M, down 16% year-over-year, mainly due to US generic competition and loss of a major exclusive account; international licensing revenue surged on a $15M milestone from China.

• Cash and investments totaled $306.7M–$307M as of June 30, 2024, providing a strong capital base for ongoing operations.

• Leadership transition completed in June 2024, with Aaron Berg appointed as President and CEO.

• Focus remains on maximizing VASCEPA/VAZKEPA’s global value, expanding in Europe and Rest of World, and operational execution.

• European IP protection for VAZKEPA extended to 2039, supporting long-term commercial opportunity.

Financial highlights

• Q2 2024 US product revenue was $43.8M–$44M, down from $64.6M, mainly due to lower net selling price from generic competition.

• European net product revenue grew to $3.5M–$4M, driven by launches in Spain, UK, and supply to Greece and Israel.

• Licensing and royalty revenue reached $20M, including a $15M milestone from China CVRR approval and a $4M non-cash payment.

• Gross margin declined to 48% in Q2 2024 from 64% in Q2 2023, reflecting US price pressure.

• Operating expenses fell to $43M–$43.3M, a $14M year-over-year reduction, achieving $50M in annualized cost savings.

Outlook and guidance

• US revenues are expected to decline further in H2 2024 due to loss of a major PBM contract and ongoing generic competition.

• Branded VASCEPA is expected to remain the IPE market leader despite generics and contract loss.

• Continued investment in European expansion is planned, with a slight decline in cash anticipated as launches and reimbursement efforts progress.

• Anticipated NRDL listing in China could occur by January 1, 2025, potentially driving significant growth.

• Management has suspended net revenue guidance due to market uncertainties.