Shares of Amarin (AMRN 0.20%) skyrocketed 32.9% on Wednesday after the biopharmaceutical company announced strong preliminary fiscal fourth-quarter results, a new share-repurchase authorization, and encouraging 2024 guidance.
NASDAQ: AMRN
Key Data Points
A strong end to Amarin's year
In a press release this morning, Amarin told investors it now expects fourth-quarter 2023 revenue of between $72 million and $74 million, far above analysts' consensus estimates for sales closer to $62 million. That would bring full-year 2023 revenue to between $304 million and $306 million, versus estimates for $294 million.
Amarin says it ended the year with roughly $321 million in cash and investments, with positive cash flow of $10 million for the year. That marks the company's sixth straight quarter of cash-positive or cash-neutral operations.
What's next for Amarin investors?
Amarin also announced a new conditional share repurchase agreement with Cantor Fitzgerald of up to $50 million of shares held in the form of American depositary shares (ADSs). Assuming the agreement receives the approvals of shareholders and the U.K. High Court, the company expects to complete the repurchases around the middle of 2024.
Finally, looking ahead in 2024, Amarin expects to further reduce operating expenses while delivering $40 million of annual savings related to the company's restructuring announced back in July 2023. The company implemented that move as its sole product, the cholesterol drug Vascepa, faces increasing competition from generic alternatives in the U.S. market. Amarin added that it will focus on preserving cash to "prudently invest in the right opportunities which are value additive."
That will likely mean reallocating capital toward its efforts on the European market, where Amarin still has plenty of work to do. But this was a big step in the right direction as investors worry about Amarin's future growth prospects, and shares responded in kind today.
