Amarin Corporation(AMRN) - 2025 Q2 - Quarterly Results

Executive Summary & Strategic Actions Amarin reported progress in Q2 2025, highlighted by a strategic partnership with Recordati to commercialize VAZKEPA in Europe and a global restructuring aimed at saving $70 million in operating expenses over the next year - Signed an exclusive long-term agreement with Recordati S.p.A. to commercialize VAZKEPA® across 59 countries, primarily in Europe, shifting to a partnership model to accelerate market adoption[5] - Initiated a global restructuring expected to generate approximately $70 million in operating expense savings over the next 12 months, mainly from eliminating commercial roles in European operations[6][7] - The company ended the quarter with a strong balance sheet, holding nearly $300 million in cash and investments with no debt, which is considered sufficient to fund future growth[4][16] Q2 2025 Financial Performance In Q2 2025, Amarin's total net revenue grew 8% year-over-year to $72.7 million, driven by a 31% increase in licensing and royalty revenue, which offset a 2% decline in net product revenue Q2 2025 Key Financial Metrics ($ in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Net Revenue | $72.7 | $67.5 | 8% | | Operating Expenses¹ | $43.6 | $43.3 | 1% | | Operating Loss | $16.0 | $0.5 | * | | Net (Loss) Income | $(14.1) | $1.5 | * | | Cash | $298.7 | - | - | ¹ Excludes restructuring charge of $22.8 million Revenue Analysis Total net revenue increased by 8% to $72.7 million, primarily due to a $6.1 million (31%) rise in licensing and royalty revenue from the Recordati partnership Q2 2025 Revenue Breakdown ($ in millions) | Revenue Source | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Product Revenue, net: | | | | | U.S. | $36.5 | $43.8 | -17% | | Europe | $6.6 | $3.5 | 85% | | Rest-of-World (RoW) | $3.5 | $0.2 | * | | Total Product Revenue, net | $46.6 | $47.5 | -2% | | Licensing & Royalties | $26.1 | $20.0 | 31% | | Total Net Revenue | $72.7 | $67.5 | 8% | - The increase in Licensing and Royalty revenue was primarily driven by the upfront payment from the European licensing agreement with Recordati[10] - In-market demand grew in all European launch markets, led by Spain and the UK. The Recordati partnership is expected to accelerate this growth[11] Operating Expenses Total operating expenses for Q2 2025 were $66.3 million, including a significant one-time restructuring charge of $22.8 million Q2 2025 Operating Expenses ($ in millions) | Expense Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | COGS | $22.4 | $24.7 | -9% | | SG&A | $38.7 | $38.5 | 0% | | R&D | $4.9 | $4.7 | 4% | | Restructuring | $22.8 | -- | * | - The company recognized a $22.8 million restructuring charge related to the global reorganization following the licensing agreement with Recordati[14] Net Loss and Balance Sheet The company reported a net loss of $14.1 million, or $0.03 per share, a significant shift from a net income of $1.5 million in the prior-year quarter, primarily due to restructuring costs - Reported a net loss of $14.1 million, or $0.03 loss per share, compared to net income of $1.5 million, or $0.00 earnings per share for Q2 2024[16] - As of June 30, 2025, the company had aggregate cash and investments of $298.7 million and remained debt-free[16] Corporate Information and Outlook Amarin is actively exploring strategic actions to maximize shareholder value with the help of its financial advisor, Barclays - The Board and management are continuing to explore potential strategic actions with financial advisor Barclays to maximize shareholder value[17] - VASCEPA®/VAZKEPA® is approved for reducing cardiovascular risk in multiple regions, including the U.S., Europe, Canada, and China, and has been prescribed over twenty-five million times since its U.S. launch[21] Financial Statements This section contains the unaudited U.S. GAAP consolidated financial statements for Amarin, including the Balance Sheet, Statement of Operations, and a reconciliation of GAAP to Non-GAAP net income Consolidated Balance Sheet As of June 30, 2025, Amarin reported total assets of $670.1 million and total liabilities of $205.2 million Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $606,819 | $595,399 | | TOTAL ASSETS | $670,126 | $685,349 | | Total current liabilities | $185,946 | $179,949 | | Total liabilities | $205,202 | $199,173 | | Total stockholders' equity | $464,924 | $486,176 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $670,126 | $685,349 | Consolidated Statement of Operations For the three months ended June 30, 2025, Amarin reported total net revenue of $72.7 million and a net loss of $14.1 million, or ($0.03) per share Consolidated Statement of Operations Data (in thousands, except per share) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue, net | $72,741 | $67,491 | | Gross margin | $50,362 | $42,769 | | Total operating expenses | $66,347 | $43,293 | | Operating loss | $(15,985) | $(524) | | Net (loss) income | $(14,139) | $1,522 | | Basic (Loss) earnings per Share | $(0.03) | $0.00 | Reconciliation of Non-GAAP Financial Measures Amarin provided a reconciliation from GAAP net loss to non-GAAP net income, resulting in a non-GAAP net income of $18.0 million for Q2 2025 Reconciliation of GAAP to Non-GAAP Net Income (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net loss for EPS - GAAP | $(14,139) | $1,522 | | Stock-based compensation expense | $4,327 | $4,643 | | Licensing Agreement Fees | $5,038 | — | | Restructuring | $22,759 | — | | Net income for EPS - non-GAAP | $17,985 | $6,165 |