Investment Thesis
Amarin faces significant operational challenges with negative operating margins of -23.5% and persistent net losses despite a 56.6% gross margin, indicating substantial R&D and operating expense burdens that are unsustainable. Declining revenue (-6.5% YoY) combined with negative profitability metrics (ROE: -8.4%, ROA: -5.8%) and minimal free cash flow generation (3.0% FCF margin) suggest deteriorating business fundamentals. While the company maintains adequate liquidity (3.34x current ratio) and zero long-term debt, the trajectory of profitability deterioration and revenue contraction poses meaningful risk to long-term viability.
AMRN Strengths
- Strong balance sheet with $134.7M cash and zero long-term debt providing financial flexibility
- Solid current ratio of 3.34x and quick ratio of 2.33x indicating adequate short-term liquidity
- Healthy 56.6% gross margin demonstrating product pricing power despite operational losses
AMRN Risks
- Negative operating margin of -23.5% and net margin of -18.2% indicate unsustainable business model with operating losses continuing to exceed gross profits
- Revenue declining 6.5% year-over-year suggesting loss of market share or demand weakness in pharmaceutical segment
- Minimal free cash flow generation (3.0% FCF margin) combined with operating losses raises concerns about cash runway sustainability despite current cash reserves
- Negative ROE (-8.4%) and ROA (-5.8%) indicating shareholder value destruction and inefficient asset utilization
Key Metrics to Watch
- Revenue trajectory and stabilization of YoY decline rate
- Operating margin improvement toward breakeven through cost control
- Operating cash flow sustainability and free cash flow generation
- Cash burn rate relative to current cash reserves and runway
AMRN Financial Metrics
AMRN Profitability Ratios
AMRN Balance Sheet & Liquidity
AMRN 5-Year Financial Trend
5-Year Trend Summary: AMARIN CORP PLCUK's revenue has declined by 50% over the 5-year period, indicating business contraction. The most recent EPS of $-0.15 indicates the company is currently unprofitable.
AMRN Growth Metrics (YoY)
AMRN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $42.3M | $1.5M | $-0.02 |
| Q2 2025 | $67.5M | $1.5M | $0.00 |
| Q1 2025 | $42.0M | -$10.0M | $-0.02 |
| Q3 2024 | $42.3M | $1.5M | $-0.05 |
| Q2 2024 | $67.5M | $1.5M | $0.00 |
| Q1 2024 | $56.5M | -$10.0M | $-0.02 |
| Q3 2023 | $66.1M | -$5.1M | $-0.01 |
| Q2 2023 | $80.2M | -$16.5M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMRN Capital Allocation
AMRN SEC Filings
Access official SEC EDGAR filings for AMARIN CORP PLCUK (CIK: 0000897448)