Amarin Corporation(US:AMRN)2025-10-29 13:02Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $49.7 million, an increase of $7.4 million or 17% compared to the prior year, primarily due to higher U.S. sales [21] - Net product revenue was $48.6 million, reflecting a $6.7 million or 16% increase [21] - U.S. net product revenue reached $40.9 million, a significant increase of $10.3 million or 34%, driven by a change in customer mix and increased volume [22] - Operating loss for Q3 2025 was $11.1 million, which is $14.1 million or 56% lower than Q3 2024, indicating improved operational efficiency [25] - Operating margin improved to -22% from -60% in the prior year [25] - Cash and investments at the end of the quarter totaled $286.6 million, with no debt and working capital of $446 million [26] Business Line Data and Key Metrics Changes - The transition to a partnered model with Recordati has begun to show results, with product revenue from Europe at $4.1 million, consistent with the prior year [22][23] - Revenue from the rest of the world was $3.6 million, a decline from the prior year, attributed to variability in supply shipments and market demand [23][50] - SG&A expenses were reduced to $19.7 million, a decrease of $17.2 million or 47% compared to the prior year [24] Market Data and Key Metrics Changes - VASCEPA maintained over 50% market share in the IPE market in the U.S., demonstrating resilience five years post-generic entry [11] - The company anticipates that Recordati will fully manage European commercialization by the end of 2025, with sustained momentum in demand across all commercialized European markets [9][10] Company Strategy and Development Direction - The partnership with Recordati marks a strategic shift to a fully partnered commercial model in international markets, aiming to leverage expertise across nearly 100 markets [5][6] - The company is focused on reducing the cardiovascular disease burden globally, with a commitment to operational efficiency and cost savings of $70 million over the next year [8] - The transition to a partnered model is expected to enhance revenue generation and operational efficiency, with a focus on maximizing the clinical impact of VASCEPA [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic actions taken and the potential for growth, particularly in underpenetrated markets [19] - The company is optimistic about achieving positive free cash flow by 2026, supported by a rightsized operating footprint and improved operating margins [26] - The FDA's recent actions regarding fenofibrates are seen as an opportunity to shift clinical practice towards more effective therapies like VASCEPA [14][17] Other Important Information - Restructuring expenses totaled $9.4 million for the quarter, with a total of $32.2 million incurred to date [25] - The company is committed to advancing cardiovascular care through a strong presence at major medical meetings, including the European Society of Cardiology conference [12] Q&A Session Summary Question: U.S. net price trajectory for the back half of 2025 and into 2026 - Management anticipates U.S. net prices to remain consistent for the remainder of 2025, with ongoing negotiations for rebate percentages for 2026 [28][30] Question: Future milestone payments from Recordati - Milestone payments are based on sales performance, triggered as Recordati surpasses $100 million in sales [30] Question: Decline in rest of world revenue - The decline is attributed to variability in supply shipments and the absence of larger launches in the current quarter [48][50]