Shares of Amarin Corporation plc (NASDAQ: AMRN) plunged more than 43% to close at $1.56 on Wednesday after the Irish-American biopharmaceutical company reported disappointing results for the first quarter of 2022.
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Results in Detail
Amarin reported an adjusted loss of $0.06 per share in the quarter, greater than the Street’s estimated loss of $0.02 per share. The company recorded an adjusted loss of $0.03 per share in the same quarter last year.
Total net revenue of $94.63 million declined 33% year-over-year and also missed the Street’s expectations of $128.37 million. Net product revenue came in at $94 million, down 33.5%. The lower volume and selling initiatives to maximize prescription fulfillment impacted the quarterly results.
Selling, general, and administrative expenses declined 14.4% to $90.6 million, while research and development expenses came in at $10.1 million, up 7.4%.
The gross margin on net product revenue was 76%, down from 80% in the prior-year quarter.
As of March 31, 2022, the company had total cash and investments of $389.3 million.
Outlook & Pipeline Update
Encouragingly, the CEO of Amarin, Karim Mikhail, said, “In summary, during the first quarter, we made meaningful advances toward achieving greater geographic reach for VASCEPA/VAZKEPA in key markets, advanced our U.S. go-to-market strategy and made progress on our fixed-dose combination portfolio.”
“We remain focused on accomplishing the objectives we set for 2022 and look forward to making significant progress throughout the balance of this year and beyond,” Mikhail added.
According to Amarin’s release, “Given the ongoing global impact of COVID-19, as well as the uncertainty resulting from the impact of generic IPE availability in the U.S. and challenges for most drugs seeking market access in Europe,” the company has continued to suspend providing revenue guidance for 2022.
Wall Street’s Take
Following the results, Northland Securities analyst Carl Byrnes downgraded Amarin to a Hold from a Buy and reduced the price target to $2 (28.21% upside potential) from $9.
Wall Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on five Buys, two Holds, and one Sell. The average Amarin price target of $8.25 implies 428.85% upside potential to current levels. Shares have decreased 66.81% over the past year.
Bottom-Line
Based on the company’s recent stock price performance, disappointing results, analyst ratings, and macroeconomic concerns, investors should be wary before investing in this stock.
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