Amarin’s Mixed Fortunes: Navigating U.S. Competition and European Growth Opportunities

Analyst Roanna Ruiz of Leerink Partners maintained a Hold rating on Amarin (AMRN – Research Report), with a price target of $1.00.

Roanna Ruiz’s rating is based on several factors impacting Amarin’s business. The company reported a decline in total revenues for the fourth quarter of 2024, primarily due to increased competition from generic versions of its product, Vascepa, in the U.S. market. This competition has led to a significant drop in gross margins, which fell from 58% in the previous year to 41% in the current quarter. Additionally, the shift in business mix towards Medicare Part D, following CVS’s decision to move away from an exclusive contract for Vascepa, has created further pricing pressures.
Despite these challenges, Amarin is making progress in its European operations, securing pricing and reimbursement agreements, particularly in Italy. The company also maintains a stable cash position with no debt, which provides some financial stability. However, the early stages of Vazkepa launches in Europe require more market access and physician education, which could take time to develop. These mixed factors contribute to the Hold rating, as the company navigates both competitive pressures and growth opportunities.