Why Amarin Stock Is Sinking on Wednesday
By Cory Renauer - May 4, 2022 at 10:51AM
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NASDAQ: AMRN
Amarin Corporation plc
Market Cap
$1B
Today's Change
(-44.34%) -$1.22
Current Price
$1.52
Price as of May 4, 2022, 6:18 p.m. ET
Missed expectations on the top and bottom lines suggest Amarin's path forward isn't as clear as investors want it to be.
What happened
Shares of Amarin (AMRN -44.34%), a pharmaceutical company that markets a fish oil supplement called Vascepa, are under pressure after the company's first-quarter earnings call. Results that missed expectations prompted the market to drag the stock 42.9% lower as of 10:25 a.m. ET on Wednesday.
NASDAQ: AMRN
Amarin Corporation plc
Today's Change
(-44.34%) US$ -1,22
Current Price
US$ 1,52
AMRN
Key Data Points
Market Cap
$1B
Day's Range
US$ 1,45 - US$ 1,91
52wk Range
US$ 1,45 - US$ 5,97
Volume
31,440,271
Avg Vol
2,558,257
P/E (ttm)
140.38
So what
Back in 2019, the Food and Drug Administration approved an expanded indication for Vascepa that was expected to produce windfall profits for the company. Unfortunately for Amarin, a federal court ruling opened Vascepa up to competition from generic versions in 2020.
The stock is sliding today because first-quarter earnings results suggest the company's commercialization strategy isn't working. First-quarter revenue fell 34% year over year to $94 million, which was $33 million less than Wall Street was expecting.
The company also missed expectations on the bottom line. The average analyst following Amarin was looking for a loss of $0.02 per share, but the company reported a much wider loss of $0.08 per share.