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Investing.com -- Amarin Corporation PLC (NASDAQ:AMRN) stock surged 11% after the company announced an exclusive long-term licensing and supply agreement with Italian pharmaceutical firm Recordati (BIT:RECI) S.p.A. for its cardiovascular drug VAZKEPA in Europe.
Under the terms of the agreement, Amarin will receive $25 million upfront and potential milestone payments of up to $150 million based on Recordati achieving predefined annual commercial sales targets. The deal covers commercialization rights across 59 European countries, where Amarin holds patent protection until 2039.
The partnership allows Amarin to capitalize on VAZKEPA’s early European market success while streamlining its global operations. The company expects to achieve approximately $70 million in cost savings over the next 12 months, primarily through reduced European commercialization expenses.
"We are pleased to place VAZKEPA, a drug with proven, meaningful cardiovascular benefit when added to statins, in the hands of a partner with the capabilities and experience in the cardiovascular space in Europe as Recordati," said Odysseas Kostas, Chairman of Amarin’s Board of Directors.
Recordati, headquartered in Milan, has operations in over 150 countries with cardiovascular treatments representing approximately 25% of its Specialty and Primary Care business.
Aaron Berg, Amarin’s President and CEO, stated that the partnership "accelerates the path to positive cash flow and strengthens our strategic position for the future." The company highlighted its strong financial position with nearly $300 million in cash, no debt, and continued revenue generation from multiple streams.
Amarin will continue focusing on its U.S. business while supporting existing partnerships in Canada, Middle East and North Africa, China, Australia/New Zealand, and Southeast Asia.
Barclays (LON:BARC) served as financial advisor on the transaction, with Wilke Farr & Gallagher LLP providing legal counsel.
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