Amarin Corp. Plc Q4 FY2024 earnings call

• Strategic Moves: Extended intellectual property in Europe to 2039, implemented new commercial/pricing/reimbursement strategy in Europe focused on high-risk patients, secured pricing/reimbursement in 10 European markets, reduced operating expenses by 26% in 2024 including the $50 million annual reduction committed to in 2023, and renegotiated product supply agreements.
• Operational Progress: VASCEPA revenues gradually increased in Europe in 2024, with growth in Spain, UK, and central Eastern Europe; secured pricing in Italy, Portugal, Greece, and Austria; partnerships in China, Australia, Canada, and MENA regions made progress; medical, R&D, and regulatory teams advanced science and advocacy for VASCEPA.
• Financials: Ended 2024 with $294 million in cash, no debt, and total revenue of $228.6 million, demonstrating prudent cash management and cost control.

In 2024, Amarin generated total revenue of $228.6 million. U.S. product revenue in the fourth quarter was $44.2 million, down from prior year due to generic competition. European product revenue in the fourth quarter was $4 million, with growth in Spain, the UK, and central Eastern Europe. Product revenue from partnerships throughout the rest of the world was $11.9 million in the fourth quarter, a $7.7 million increase from the prior year period. The U.S. contributed a significant portion of revenue historically, but European and partnership revenues are growing, with the latter driven by partnerships in regions like China, Australia, and MENA.

Amarin announced intent to change ADS ratio from 1 ADS representing 1 ordinary share to 1 ADS representing 20 ordinary shares to maintain NASDAQ listing. The company aims to accelerate global revenue growth while managing costs. Priorities for 2025 include maintaining NASDAQ listing, driving momentum in Europe and other international regions, maximizing profitability in the U.S., and continuing to advance the science behind VASCEPA.

• Generic competition in the U.S. can impact net price and volume, as seen in the decline of U.S. product revenue due to generic entry.
• Delays in regulatory approvals and commercialization in international markets could slow revenue growth in regions like Southeast Asia where approvals are expected in 2026.
• Fluctuations in partnership revenue due to restocking timing relative to in-market demand can cause variability in quarterly results.

Q: Factors influencing U.S. net price in the fourth quarter and outlook for coming quarters?

A: Aaron Berg and Pete Fishman discussed that variability in the business mix, including the impact of CVS commercial moving from exclusive to not covered, led to a shift in the business mix, causing pricing pressure. In the coming quarters, the volume impact from CVS and continued pricing pressure from exclusive contracts are expected to influence U.S. net price.

Q: Outlook on building pipeline through BD and therapeutic areas of interest?

A: Aaron Berg stated that Amarin is opportunistic in business development but currently focuses on executing with VASCEPA/VAZKEPA in Europe. While interested in cardiometabolics and other therapeutic areas, the immediate focus is on realizing the untapped potential of VASCEPA globally.

Q: Geographical breakdown of rest of world revenue growth?

A: Aaron Berg explained that most regions outside the U.S. are in early stages of commercialization. Partnerships in regions like China, Australia, Canada, and MENA are making progress, but each region has unique challenges related to education, access (private and public), and regulatory processes. The company is leveraging partners' expertise in these regions but notes it takes time to establish market presence.