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DUBLIN - Amarin Corporation plc (NASDAQ:AMRN), a pharmaceutical company currently trading at $0.43 per share with a market capitalization of $178 million, has confirmed that it will implement a ratio change for its American Depositary Shares (ADS) effective April 11, 2025. The adjustment will modify the current ratio from one ADS representing one ordinary share to one ADS representing twenty ordinary shares. This move, known as the "Ratio Change," is aimed at increasing the per share market price of the company's ADSs to comply with the Nasdaq's minimum bid price requirement of $1.00 per share. This is a strategic step to maintain Amarin's listing on The Nasdaq Capital Market. According to InvestingPro data, the stock has declined nearly 60% over the past year, highlighting the urgency of this corporate action.
The company has cautioned that there can be no assurance that the post-Ratio Change trading price per ADS will be equal to or exceed twenty times the trading price per ADS prior to the change. Amarin's ordinary shares will not be affected by this Ratio Change. The ADSs will continue to trade on The Nasdaq Capital Market under the ticker symbol "AMRN." InvestingPro analysis reveals that while the company holds more cash than debt and maintains strong liquidity with a current ratio of 3.31, investors should note that analysts anticipate continued sales decline in the current year. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Amarin, which specializes in cardiovascular disease management, has stated that this action is part of its efforts to regain compliance with Nasdaq's continued listing requirements. The company's financial health score from InvestingPro is rated as "Fair," with particularly strong metrics in liquidity management. However, the press release also includes forward-looking statements that involve risks and uncertainties, and the company has warned that these statements should not be relied upon unduly by investors. The potential impact of the Ratio Change on the ADS trading price and liquidity, as well as Amarin's ability to meet Nasdaq's minimum bid price requirement, remain uncertain.
The company has made additional information available regarding the Ratio Change in the Investor Relations section of its corporate website. Amarin's filings with the U.S. Securities and Exchange Commission, including its annual report for the fiscal year ended 2024, contain further details about the risks associated with an investment in Amarin.
The information provided in this article is based on a press release statement from Amarin Corporation plc.
In other recent news, Amarin Corporation reported its fourth-quarter 2024 earnings, surpassing earnings per share (EPS) expectations with an actual EPS of -0.02, compared to the forecast of -0.05. However, the company's revenue for the quarter declined to $62.3 million from $74.7 million in the previous year, with a notable drop in U.S. product revenue. Meanwhile, Amarin announced the appointment of Michael Torok, a seasoned financial professional and Co-Founder of JEC Capital Partners, to its Board of Directors, bringing extensive experience in corporate governance and investment. Additionally, board member Mark DiPaolo will not seek re-election and will step down following the company's 2025 Annual Meeting of Shareholders. Major shareholders, including Bradley L. Radoff and Michael Torok, have urged Amarin's Board to conduct a strategic review to maximize shareholder value, citing a significant decline in the company's share price. Amarin is also set to present new data on its cardiovascular drug at the upcoming American College of Cardiology Annual Scientific Session & Expo, focusing on the active ingredient in its product, VASCEPA. These developments come amid the company's efforts to maintain a strong cash position of $294 million and no debt, despite challenges in revenue generation.
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