Amarin (AMRN) 2020 Spend Guidance Significantly Above Street, Maintains Underperform - Oppenheimer

Oppenheimer analyst Leland Gershell reiterated an Underperform rating and $8.00 price target on Amarin Corporation (NASDAQ: AMRN), noting 2020 spend guidance is significantly above the Street.

The analyst commented, "Amarin pre-released 4Q19 revenue at or slightly above high end of guided $410-425M. While 2020 revenue guidance of $650-700M was reiterated, in order to break even on cash flow AMRN requires $150M in revenue/quarter without factoring DTC/inventory build and $200M revenue/quarter including DTC/inventory build. We conclude ~$700M in 2020E revenue is required to break even, meaning Vascepa sales would need to beat guidance to be cash flow positive. Updated guidance for operating expenses increase of $200-250M to 2019 level is significantly higher than Street's consensus of an increase of $150M in OpEx, but in range of our calculated increase of $230M for expansion of sales force and DTC. Additionally, of interest, we note hiring is ~two-thirds complete and now expected to be complete by early February vs. previously guided by January, in line with their scheduled national sales training. We caution investors that spend in 1Q20 and 2020 will likely be heavier than expectations, diminishing profitability. AMRN to report 2019 results near end of February."

For an analyst ratings summary and ratings history on Amarin Corporation click here. For more ratings news on Amarin Corporation click here.

Shares of Amarin Corporation closed at $21.23 yesterday.

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