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Amarin Corp. (AMRN) Misses Q3 EPS by 2c, Revenues Beat

February 27, 2019 5:59 AM EST

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Amarin Corp. (NASDAQ: AMRN) reported Q3 EPS of ($0.09), $0.02 worse than the analyst estimate of ($0.07). Revenue for the quarter came in at $77.33 million versus the consensus estimate of $73.87 million.

  • Net product revenue for the years ended December 31, 2018 and 2017 was $228.4 million and $179.8 million, respectively. Net product revenue for the three months ended December 31, 2018 and 2017 was $77.1 million and $53.5 million, respectively. Increased revenue is mainly attributed to increased Vascepa prescriptions in the U.S.
  • In addition, Amarin recognized licensing revenue of $0.8 million and $1.3 million for the years ended December 31, 2018 and 2017, respectively, under agreements for the commercialization of Vascepa outside the U.S.
  • Cost of goods sold for the three months ended December 31, 2018 and 2017 was $17.5 million and $13.4 million, respectively. Cost of goods sold for the years ended December 31, 2018 and 2017 was $54.5 million and $45.0 million, respectively. Gross margin on product sales was approximately 77% and approximately 76% in the quarter and year ended December 31, 2018, as compared to approximately 75% in the quarter and year ended December 31, 2017, respectively.
  • Selling, general and administrative expenses for the years ended December 31, 2018 and 2017 were $227.0 million and $134.5 million, respectively. This increase is due primarily to increased promotional activities, including commercial spend in preparation for and following the successful REDUCE-IT results (announced on September 24, 2018), including pilot consumer promotion, and increased co-promotion fees calculated on increased gross profit resulting from higher net product revenue plus an accrual of $16.4 million for co-promotion tail payments. The tail co-promotion fees, which were calculated as a percentage of the 2018 co-promotion fee, are payable in 2019 through 2021. No further expense from this prior co-promotion arrangement is anticipated beyond 2018.
  • Research and development expenses for the years ended December 31, 2018 and 2017 were $55.9 million and $47.2 million, respectively. This increase is primarily due to the REDUCE-IT trial and related costs and the recording of $2.7 million in expense related to the company’s previously announced strategic collaboration with Mochida Pharmaceutical Co., Ltd.
  • Under U.S. GAAP, Amarin reported a net loss of $33.7 million in the three months ended December 31, 2018, or basic and diluted loss per share of $0.11. This net loss included $4.8 million in non-cash stock-based compensation expense. Amarin reported a net loss of $22.5 million in the fourth quarter of 2017, or basic and diluted loss per share of $0.08. This net loss included $3.5 million in non-cash stock-based compensation expense.
  • Under U.S. GAAP, Amarin reported a net loss of $116.4 million for the year ended December 31, 2018, or basic and diluted loss per share of $0.39. This net loss included $18.8 million in non-cash stock-based compensation expense. For the year ended December 31, 2017, Amarin reported a net loss of $67.9 million, or basic and diluted loss per share of $0.25. This net loss included $14.0 million in non-cash stock-based compensation expense.
  • Excluding non-cash gains or losses for stock-based compensation, non-GAAP adjusted net loss was $28.9 million for the fourth quarter of 2018, or non-GAAP adjusted basic and diluted loss per share of $0.09, compared to non-GAAP adjusted net loss of $19.0 million for the fourth quarter of 2017, or non-GAAP adjusted basic and diluted loss per share of $0.07.
  • Excluding non-cash gains or losses for stock-based compensation, non-GAAP adjusted net loss was $97.6 million for the year ended December 31, 2018, or non-GAAP adjusted basic and diluted loss per share of $0.33, compared to non-GAAP adjusted net loss of $53.9 million for the year ended December 31, 2017, or non-GAAP adjusted basic and diluted loss per share of $0.20.
  • As of December 31, 2018, the company had $66.5 million in net accounts receivable ($86.1 million in gross accounts receivable before allowances and reserves), which are current, and $57.8 million in inventory. As of December 31, 2018, the company had accounts payable and accrued expenses of $121.8 million which increased from $84.1 million at December 31, 2017 primarily due to the company’s growth, including supplier payments associated with the increased levels of Vascepa inventory associated with supporting increased revenue and the magnitude and timing of rebates.
  • As of December 31, 2018, Amarin had approximately 325.9 million ADSs and ordinary shares outstanding, 28.9 million common share equivalents of Series A Convertible Preferred Shares outstanding and approximately 19.3 million equivalent shares underlying stock options at a weighted-average exercise price of $4.29, as well as 9.6 million equivalent shares underlying restricted or deferred stock units.

“The tremendous progress Amarin made in 2018 helps position us for further significant achievement and accelerated revenue growth in the future,” commented John Thero, Amarin’s president and chief executive officer. “Our excitement regarding the REDUCE-IT study results is being reinforced by feedback from healthcare professionals as they begin to understand these unprecedented results and the positive impact it could have on patient care.”

For earnings history and earnings-related data on Amarin Corp. (AMRN) click here.



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