Amarin Corporation's (NASDAQ: AMRN) Q4 earnings report reflected a loss of 12 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 6 cents1. Despite the earnings miss, total revenues for the quarter were $62.3 million, comprehensively beating the Zacks Consensus Estimate of $35 million1. However, this revenue beat was overshadowed by the following factors:
- Decline in Product Revenues: Net product revenues from Vascepa, Amarin's sole marketed drug, were $60.1 million, down 15% year-over-year1. U.S. product revenues from Vascepa totaled $44.2 million, declining almost 32% from the year-ago quarter's level due to rising generic competition1.
- Strategic Changes Impact: Amarin initiated a shareholder approval process for a share repurchase program of up to $50 million by the end of Q2 20242. The company also announced plans to change the ratio of its American Depositary Shares (ADS) from one ADS representing one ordinary share to one ADS representing twenty ordinary shares, aiming to maintain its listing on the Nasdaq Capital Market and ensure long-term access to capital markets3. These strategic moves may have raised concerns among investors about the company's financial stability and future growth prospects.
Investor sentiment likely remained cautious or even negative due to the earnings miss, the decline in product revenues, and the strategic changes announced in the earnings report. The stock traded lower in the premarket following the earnings release amid these factors3.
4/4/2025 08:15am
