Amarin licenses VAZKEPA to Recordati in 59 European countries

DUBLIN/BRIDGEWATER - Amarin Corporation (NASDAQ:AMRN), which has seen its stock surge nearly 38% over the past six months according to InvestingPro data, announced Tuesday it has entered into an exclusive long-term license and supply agreement with Recordati S.p.A. for the commercialization of VAZKEPA (icosapent ethyl) across 59 European countries.

Under the agreement, Amarin will receive $25 million upfront and potential milestone payments of up to $150 million based on Recordati achieving predefined sales targets. Amarin will also receive supply-based revenues including royalties.

The partnership will allow Amarin to streamline its global operations, resulting in approximately $70 million in cost savings over the next 12 months, with most reductions coming from European commercialization expenses.

"Partnering with Recordati, a market leader in Europe, is now the right decision for the company, financially and for patients," said Odysseas Kostas, Chairman of Amarin’s Board of Directors.

Recordati, headquartered in Milan, Italy, has operations in over 150 countries. Cardiovascular treatments represent approximately 25% of Recordati’s Specialty and Primary Care business.

"This long-term partnership with Recordati for VAZKEPA in Europe, where we have patent protection up to 2039, combined with the Company’s financial strengths accelerates the path to positive cash flow," said Aaron Berg, President & CEO of Amarin.

VAZKEPA is approved for reducing cardiovascular event risk in high-risk patients. Amarin will continue to drive VASCEPA revenue in the U.S. while generating revenue through partnerships in other international markets including Canada, MENA, China, Australia/New Zealand, and Southeast Asia.

The company reported it has nearly $300 million in cash and no debt, which aligns with InvestingPro’s analysis showing a healthy current ratio of 3.53 and minimal debt-to-equity ratio of 0.02. According to InvestingPro’s comprehensive analysis, Amarin currently appears undervalued, with additional insights available in the platform’s detailed Pro Research Report, which provides deep-dive analysis of over 1,400 US stocks. Barclays served as financial advisor on the transaction, which was announced in a press release statement.

In other recent news, Amarin Corporation has announced several key developments. The company confirmed its compliance with Nasdaq’s continued listing standards after successfully adjusting its average closing share price, a crucial step for maintaining its public listing. Additionally, Amarin implemented a strategic change to its American Depositary Shares (ADS) ratio, altering it from one ADS representing one ordinary share to one ADS representing twenty ordinary shares, to meet Nasdaq’s minimum bid price requirement. This adjustment aims to increase the per-share market price of the company’s ADSs.

In corporate governance updates, Amarin appointed Michael Torok, an investment expert and co-founder of JEC Capital Partners, to its Board of Directors. Torok’s extensive experience in corporate governance and investment is expected to enhance shareholder value. Meanwhile, board member Mark DiPaolo has announced he will not seek re-election and will step down after the 2025 Annual Meeting of Shareholders. His departure is not due to any disagreements with the company. These developments reflect Amarin’s ongoing efforts to maintain compliance and strengthen its governance structure.

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