Amarin Q1 Earnings Call Highlights

Key Points

• Management says the global restructuring is “substantially completed” and remains on track for an estimated $70 million in operating expense savings by June 30, 2026; Amarin ended the quarter with $308 million in cash, no debt, and a second consecutive quarter of positive operating cash flow.
• Amarin’s international partnered strategy, led by an exclusive deal with Recordati, is gaining traction—Recordati began Vazkepa sales in 10 countries and European product revenue was $4.9 million in Q1 with a sequential increase of 113%, driven by higher supply shipments and lower operating costs under the partner model.
• The U.S. franchise remains cash-generating despite generic competition, with Vascepa market share up to 48% and branded prescriptions rising 17% year-over-year; Amarin reported total net revenue of $45.1 million, a 31% decline in operating expenses, and a narrowed operating loss as it expects positive cash flow for full-year 2026.

Amarin NASDAQ: AMRN reported first-quarter 2026 results that executives said showed continued momentum from late 2025, supported by a new operating model built around a cash-generating U.S. business and a partnered international strategy for Vascepa/Vazkepa.

Management highlights restructuring progress and improved cash position

President and CEO Aaron Berg said the company has “substantially completed” its previously announced global restructuring and remains on track to achieve an estimated $70 million in total operating expense savings by June 30, 2026. Berg added that Amarin ended the quarter with $308 million in cash, an increase from year-end 2025, and reported a second consecutive quarter of positive cash flow with no debt.

Berg described 2026 as the first full year under the company’s updated structure: a streamlined U.S. commercial franchise paired with a “fully partnered” approach outside the U.S. He said Amarin continues to work with Barclays as its exclusive advisor while it explores “additional potential pathways to further enhance shareholder value.”

International partnered strategy gains traction, led by Recordati in Europe

Berg called the company’s growth engine its international commercial strategy, anchored by an exclusive license and supply agreement with Recordati covering 59 European countries and supported by intellectual property protection through 2039. He said European momentum is building, and as of March 31, 2026, Recordati had begun sales of Vazkepa in 10 countries, including an Italy launch in the fourth quarter of 2025.

Chief Financial Officer Peter Fishman said European product revenue in the first quarter was $4.9 million under the new partnered model, compared with $5.4 million in the year-ago quarter under the company’s prior sales model. Fishman emphasized that the first-quarter 2026 European revenue was generated “at a significantly lower cost,” with improved operating margins versus the prior-year period.

On a sequential basis, Fishman said Europe revenue more than doubled, rising 113% from $2.3 million in the fourth quarter of 2025, driven in part by $3.0 million of supply shipments to Recordati compared with $0.9 million in the prior quarter. With the transition complete, Fishman said Europe product revenue going forward will come “entirely from supply shipments to Recordati.”

Outside Europe, Berg said the company is seeing growth with partners in China, Australia, Canada, and the Middle East. He also said Amarin is preparing for early 2027 launches in South Korea and Singapore, monitoring regulatory reviews in Thailand and the Philippines, and following a filing submission in Vietnam during the first quarter, expects to submit a new filing in Malaysia in the second quarter of 2026.

Fishman reported rest-of-world revenue of $2.8 million in the quarter, compared with no supply shipments to other partners in the first quarter of 2025. He cautioned that the partnered model will create quarter-to-quarter variability based on launch timing, demand, and the structure of individual agreements.

U.S. franchise remains cash-generating amid generic competition

Berg said the U.S. business continues to face revenue declines due to generic competition, but he emphasized that Vascepa remains the category leader among icosapent ethyl (IPE) products more than five years after generic entry. Citing third-party data, Berg said the overall IPE market increased 3% in the first quarter of 2026 compared with the first quarter of 2025.

He also said Amarin’s market share rose to 48% as of March 31, 2026, up from 42% a year earlier, and that “Vascepa-branded prescriptions rose by 17%” year over year. Berg said the company expects to maintain exclusive status with key payers through the end of 2026 while retaining coverage in non-exclusive accounts.

In response to a question from JPMorgan’s Jessica Fye on U.S. net selling price (NSP), Fishman said the largest year-over-year change typically occurs in the first quarter. For the remainder of 2026, he said the company expects NSP and volumes to be “relatively consistent,” adding that the outlook is tied to maintaining exclusive contracts.

Financial results: revenue up, operating expenses down, cash flow positive

Fishman reported total net revenue of $45.1 million in the first quarter of 2026, up from $42.0 million in the first quarter of 2025. He said U.S. revenue was consistent year over year, with higher volume following regained exclusive status with a PBM beginning in the third quarter of 2025 offset by payer-related pricing changes.

Cost of goods sold rose by $10.5 million, or 62%, which Fishman attributed to higher product volumes in the U.S. following the PBM change and to shipments to rest-of-world partners. Looking ahead, he said the company expects cost of goods sold to remain higher until the third quarter of 2026, when it laps the anniversary of regaining the exclusive PBM relationship. In the Q&A, Fishman said gross margin could be affected by the timing and mix of supply shipments to partners, noting that the partnership model carries a different margin profile than the U.S. business.

Amarin’s expense base declined sharply following restructuring actions. Fishman said total operating expenses fell 31%, or $12.8 million, to $29.1 million. Excluding a $3.3 million restructuring charge, operating expenses were $25.8 million, down 38% from the year-ago quarter. SG&A declined 42% and represented 47% of net sales, compared with 87% in the first quarter of 2025. R&D spending, Fishman said, remained aligned with regulatory and scientific support commitments.

Restructuring expense of $3.3 million was down from $4.1 million in the fourth quarter of 2025, bringing total restructuring expense to $39.6 million. Fishman said most restructuring costs were incurred through March 31, with a “nominal” remaining amount expected in the second quarter of 2026, and later clarified it should be below the first-quarter level.

The operating loss narrowed to $11.3 million from $16.8 million a year earlier. Excluding restructuring charges, Fishman said operating loss was $8.0 million.

On the balance sheet, Fishman said cash and investments rose to $308 million from $303 million at year-end 2025, with no debt and working capital of $450 million. The company generated $6.4 million in cash flow from operations, its second consecutive quarter of positive operating cash flow. Fishman reiterated management expects positive cash flow for full-year 2026, and told JPMorgan he is confident cash-flow positivity can continue beyond 2026, subject in part to maintaining payer exclusives.

Guidelines and clinical messaging: management sees supportive backdrop

Berg and EVP and Chief Scientific Officer Steve Ketchum highlighted updated lipid management guidelines issued in March 2026 by the American College of Cardiology, the American Heart Association, and other medical associations. Berg said the guideline updates incorporate evidence from major randomized trials since the prior 2018 guideline, including REDUCE-IT, and he emphasized that icosapent ethyl is positioned as the only primary triglyceride-lowering medication that reduces cardiovascular event risk when used with statins for high-risk patients with moderate triglyceride elevations after sufficient LDL lowering.

In response to Goldman Sachs analyst Paul Choi, Berg said feedback has been “very positive” but described it as qualitative and said it will take time for guideline changes to translate into measurable growth. Ketchum said the updated guidelines represent “important, timely, and major updates” that position icosapent ethyl as an important consideration for patients with elevated triglycerides and cardiovascular risk.

Authorized generic and potential capital return discussions

Asked by Leerink Partners analyst Michael Ahn about an authorized generic, Berg said Amarin does not believe launching one is in its best interest “at this time” given the company’s ability to maintain branded performance through payer exclusives. He said the company is prepared to launch an authorized generic if market dynamics change and it can no longer compete effectively with the current strategy.

Goldman’s Choi also asked about returning cash to shareholders as cash accumulates. Berg said management and the board discuss the topic regularly and, within the company’s broader strategic review with Barclays, returning cash through mechanisms such as a buyback is “a concept that is being discussed” and “could possibly happen at the right time,” though he said Amarin is focused on the holistic value of the company and would provide updates when there is something tangible to report.

About Amarin NASDAQ: AMRN

Amarin Corporation plc is a biopharmaceutical company focused on the commercialization and development of therapeutics for cardiovascular health. Founded in 1993 and headquartered in Dublin, Ireland, the company is publicly traded on the NASDAQ under the ticker AMRN. Amarin's primary mission is to improve cardiovascular outcomes through innovative lipid science and evidence-based therapies.

The company's flagship product is Vascepa® (icosapent ethyl), a high-purity prescription omega-3 fatty acid approved for the treatment of severe hypertriglyceridemia and as an adjunct to statin therapy to reduce the risk of cardiovascular events.

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