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HOUSTON - Bradley L. Radoff and Michael Torok of JEC Capital Partners, along with affiliates known as the Concerned Shareholder Group, who collectively own about 15 million shares of Amarin Corporation plc (NASDAQ: AMRN), have publicly called on the company’s Board of Directors to initiate a strategic review aimed at maximizing shareholder value. According to InvestingPro data, the company currently maintains a ’FAIR’ Financial Health score, though analysts anticipate continued sales decline in the current year.
The call for action comes in the wake of a significant decline in Amarin’s share price, which plummeted nearly 80% from $2.03 at the close of February 28, 2023, to $0.43 as of March 18, 2025. This decline occurred despite the election of director candidates supported by Sarissa Capital Management and the Board’s confidence in their ability to enhance shareholder value. The stock’s high volatility is reflected in its beta of 1.83, with a one-year total return of -50%. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.
In early 2024, Amarin’s Chair, Dr. Odysseas Kostas, and then-CEO, Patrick Holt, expressed their belief in the strengthened position of the company and announced a share repurchase plan of up to $50 million, citing an undervalued stock price. However, the company has not followed through with the buyback. Instead, Amarin recently announced a 1-for-20 reverse split of its American Depositary Shares without addressing the previously announced buyback, a move that has historically been viewed unfavorably by the market.
The Concerned Shareholder Group points out that Amarin’s market capitalization stands at approximately $185 million, despite having no debt and maintaining a stable cash balance of nearly $300 million. They argue that the Board should act immediately to preserve and enhance shareholder value, suggesting that any transaction should provide shareholders with at least the company’s net cash position of ~$0.75/share, with the potential for a higher value considering the company’s patent-protected international business foundation. InvestingPro analysis confirms the company’s strong liquidity position with a current ratio of 3.31 and minimal debt-to-equity ratio of 0.02. Get access to over 30 additional financial metrics and insights with InvestingPro’s comprehensive research report.
The group’s letter reflects their willingness to discuss the viability of their proposed strategic review but insists on a public response from the Board due to previous commitments made to shareholders.
The information presented in this article is based on a press release statement issued by the Concerned Shareholder Group.
In other recent news, Amarin Corporation reported its fourth-quarter 2024 earnings, revealing better-than-expected earnings per share (EPS) but a decline in revenue compared to the previous year. The company’s EPS came in at -0.02, surpassing the forecast of -0.05, while total net revenue for the quarter was $62.3 million, down from $74.7 million in Q4 2023. Amarin maintains a strong cash position with $294 million and no debt, and its patent protection for Vascepa in Europe has been extended to 2039. The company plans to present new in vitro data on its cardiovascular drug at the upcoming American College of Cardiology Annual Scientific Session & Expo. The data will focus on the mechanistic activities of eicosapentaenoic acid (EPA), the active ingredient in Amarin’s icosapent ethyl product, VASCEPA/VAZKEPA. Additionally, Amarin’s European product revenue showed positive growth, indicating potential in international markets. Despite the earnings surprise, Amarin’s stock fell, reflecting mixed investor sentiment. The company aims to maintain its NASDAQ listing and drive momentum in European and global markets.
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