DUBLIN, Ireland, May 19 /PRNewswire-FirstCall/ -- Amarin Corporation plc (NASDAQ: AMRN) ("Amarin" or "Company") today reported financial results for the fourth quarter and full year ended December 31, 2007. For the fourth quarter of 2007, Amarin reported a net loss of $7.9 million, or $0.72 per share, compared with a net loss of $5.0 million, or $0.57 per share, in the fourth quarter of 2006. The increase in net loss for the quarter is primarily due to reorganization costs and higher share-based compensation costs.
For the year ended December 31, 2007, Amarin reported a net loss of $38.2 million or $3.90 per share, compared with a net loss of $26.8 million or $3.25 per share for the year ended December 31, 2006. The increase in net loss for the year is primarily due to the previously announced write-off of the Miraxion intangible asset of $8.8 million in the second quarter of 2007, reorganization costs and higher share-based compensation costs, partly offset by a reduction in research and development costs.
The net loss per share amounts reflect the one-for-ten reverse stock split which took effect on January 18, 2008. Figures for the comparative periods have been restated to International Financial Reporting Standards ("IFRS"). For further information with respect to the application of IFRS to our accounts, please refer to our 2007 IFRS Annual Report on Form 20-F filed with the United States Securities and Exchange Commission ("SEC") on May 19, 2008 and our IFRS transition document which was furnished to the SEC on Form 6-K and is available on the Company's website.
Three months ended December 31, 2007
For the quarter ended December 31, 2007, Amarin's operating loss was $7.7 million, compared with an operating loss of $6.7 million for the same period in 2006. The increase for the fourth quarter compared to the corresponding period in 2006 is primarily due to reorganization costs of $1.9 million associated with the departure of our former chief executive officer and the costs associated with the planned closing of Amarin's offices in London plus higher share-based compensation costs, partly offset by a reduction in research and development expenditure.
Research and development costs for the fourth quarter 2007 were $1.7 million, reflecting third-party research contract costs, staff costs, preclinical study costs, clinical supplies and the costs of conducting clinical trials. The decrease of $2.2 million for the fourth quarter of 2007 from the comparative period in 2006 is primarily due to the completion of the Phase III trials in Huntington's disease in early 2007. Research and development costs for the fourth quarter primarily represent expenditures on Amarin's two Parkinson's disease programs, its epilepsy and memory programs and the initiation of its new cardiovascular disease program.
Selling, general and administrative costs primarily represent Amarin's general corporate overhead, the Company's substantial investment in intellectual property and the business and corporate development costs of pursuing its growth strategy, including the costs of evaluating potential in-licensing and acquisition opportunities. Selling, general and administrative costs for the fourth quarter 2007 of $3.2 million increased by $0.7 million when compared to the same period in 2006. This increase is primarily due to increased personnel and administrative costs.
Non-cash share-based compensation expense increased $0.4 million to $0.9 million when compared to the same period in 2006. This increase was due to options granted since the end of the comparative period.
Twelve months ended December 31, 2007
For the twelve month period ended December 31, 2007, Amarin reported an operating loss of $40.7 million, compared with an operating loss of $28.1 million for the comparative period in 2006. The 2007 increase in operating loss compared with 2006 is mainly due to the $8.8 million impairment of intangible assets; an increase in non-cash share-based compensation expenses of $2.8 million; reorganization costs of $1.9 million associated with the resignation of the Company's former chief executive officer and the planned closing of the Company's offices in London; and increased selling, general and administration costs primarily reflecting increased personnel costs and the significant level of business development activities during the year. These amounts are partly offset by a reduction in research and development costs.
As at December 31, 2007, the Company had cash balances of $18.3 million. As previously reported, on May 14, 2008, Amarin announced a private placement of ordinary shares for up to $60 million to be funded in two equal tranches. Amarin expects to announce the closing of the first tranche shortly. The investors in this funding have an option to fund up to $30 million in the second tranche, upon completion of certain business milestones by the Company. Amarin now forecasts having sufficient cash to fund operations for at least the next 12 months.
Amarin is a biopharmaceutical company focused on improving the lives of patients suffering from cardiovascular and central nervous system (CNS) diseases. Amarin's cardiovascular programs capitalize on the known therapeutic benefits of essential fatty acids in cardiovascular disease. Amarin's CNS development pipeline includes programs in myasthenia gravis, Huntington's disease, Parkinson's disease, epilepsy and memory. Amarin also has two proprietary technology platforms: a lipid-based technology platform for the targeted transport of molecules through the liver and/or to the brain, and a unique mRNA technology based on cholinergic neuromodulation. Amarin has its primary stock market listing in the U.S. on the NASDAQ Capital Market ("AMRN").
The information contained in this document is as of May 19, 2008.
Amarin assumes no obligation to update any forward-looking statements
contained in this document as a result of new information or future events
or developments. This document contains forward-looking statements about
Amarin's financial condition, results of operations, business prospects and
products in research that involve substantial risks and uncertainties. You
can identify these statements by the fact that they use words such as
"will", "anticipate", "estimate", "expect", "project", "forecast",
"intend", "plan", "believe" and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance
or events. Among the factors that could cause actual results to differ
materially from those described or projected herein are the following:
risks relating to the Company's ability to maintain its Nasdaq listing;
Amarin's ability to maintain sufficient cash and other liquid resources to
meet its operating and debt service requirements; the success of Amarin's
research and development activities; decisions by regulatory authorities
regarding whether and when to approve Amarin's drug applications, as well
as their decisions regarding labeling and other matters that could affect
the commercial potential of Amarin's products; the speed with which
regulatory authorizations, pricing approvals and product launches may be
achieved; the success with which developed products may be commercialized;
competitive developments affecting Amarin's products under development; the
effect of possible domestic and foreign legislation or regulatory action
affecting, among other things, pharmaceutical pricing and reimbursement,
including under Medicaid and Medicare in the United States, and involuntary
approval of prescription medicines for over-the-counter use; Amarin's
ability to protect its patents and other intellectual property; claims and
concerns that may arise regarding the safety or efficacy of Amarin's
product candidates; governmental laws and regulations affecting Amarin's
operations, including those affecting taxation; general changes in
International Financial Reporting Standards; and growth in costs and
expenses. A further list and description of these risks, uncertainties and
other matters can be found in Amarin's Form 20-F for the fiscal year ended
December 31, 2007, filed with the SEC on May 19, 2008.
Amarin Corporation plc
Period Ended 31 December 2007 (IFRS - UNAUDITED)
Selected Income Statement Data
Three months Twelve months
2007 2006 2007 2006
Total Total Total Total
$'000 $'000 $'000 $'000
Revenue - 400 - 500
Gross profit - 400 - 500
Research and development 1,748 3,925 10,772 14,380
Selling, General &
Administrative 3,222 2,516 14,109 11,311
Amortization of intangible
assets - 170 169 676
Impairment of intangible
fixed assets (non-cash) - - 8,784 -
Reorganization costs 1,898 1,898 -
(non-cash) 865 470 5,001 2,201
Operating expenses 7,733 7,081 40,733 28,568
Categorized as follows:
& development 2,120 4,080 12,108 15,106
Total selling, general &
administrative 5,613 3,001 28,625 13,462
Total operating expenses 7,733 7,081 40,733 28,568
Total operating (loss) (7,733) (6,681) (40,733) (28,068)
Finance income (139) 1,533 1,882 3,344
Finance expense (183) - (183) (2,826)
(Loss) before taxes (8,055) (5,148) (39,034) (27,550)
Income tax credit 172 128 837 799
Net (loss) for the period (7,883) (5,020) (38,197) (26,751)
Weighted average shares -
basic* 11,013 8,833 9,784 8,234
Loss per share:
Basic (0.72) (0.57) (3.90) (3.25)
Diluted (0.72) (0.57) (3.90) (3.25)
* Weighted average shares are calculated taking into account a
one-for-ten reverse stock split which took effect from January 18, 2008
Amarin Corporation plc
Period Ended 31 December 2007 (IFRS - UNAUDITED)
As at 31 December As at 31 December
1. Selected Balance Sheet Data
Property, plant and equipment 595 314
Intangible fixed assets 19,916 9,636
Available for sale investment 15 18
Income tax recoverable 1,704 1,617
Other current assets 1,721 1,172
Cash 18,303 36,802
Total current assets 21,728 39,591
Total assets 42,254 49,559
Provisions 606 110
Other liabilities 36 -
Convertible debt 2,051 -
Total non-current liabilities 2,693 110
Trade payables 3,462 2,096
Accrued expenses & other
liabilities 6,733 8,625
Provisions 5,217 160
Total current liabilities 15,412 10,881
Total liabilities 18,105 10,991
Capital and reserves
attributable to equity
Share capital 12,942 7,990
Other reserves 11,207 30,578
Total shareholders' equity
and liabilities 42,254 49,55
2. The selected financial data set out in this press release
should be read in conjunction with our 2007 IFRS Annual Report on Form
20-F which was filed with the SEC on May 19, 2008.
3. Loss per share
Effective January 18, 2008 our Ordinary Shares were consolidated on a
one-for-ten basis whereby ten Ordinary Shares of 5p each became one
Ordinary Share of 50p. Shares and share related information (such as
loss per share information) reflect this one-for-ten Ordinary Share
4. Non-current assets - Intangible assets
Intangible assets of $19,916,000 relate to the acquisition of Ester
Neurosciences Limited on December 5, 2007 representing the upfront
acquisition consideration already satisfied in cash and shares in
December 2007 plus $4,756,000 of a provision relating to a future
contingent milestone, likely payable during 2008. This milestone is
payable in cash or shares, at Amarin's option (see note 6 below).
5. Non-current liabilities - Convertible debt
In December 2007, the company issued $2.75 million 8% convertible notes.
These notes are being repaid out of the proceeds of the first tranche of
the funding announced on May 14, 2008.The difference between the carrying
amount of the liability component at the date of issue and the amount
reported in the balance sheet at December 31, 2007 represents the change
in amortized cost under the effective interest rate method.
6. Current liabilities - Provisions
Included in provisions is $4,756,000 which relates to the fair value of
the contingent consideration payable to former Ester shareholders in cash
or shares, at Amarin's option, on the achievement of a certain milestone
as a result of the acquisition of Ester Neurosciences Limited on December
5, 2007. The achievement of this milestone is considered to be probable
and is recognized as a liability.
7. Basis of preparation
As at December 31, 2007, the Company had cash balances of $18,303,000.
As previously announced, on May 14, 2008, Amarin announced a private
placement of ordinary shares for up to $60 million to be funded in two
equal tranches. Amarin expects to announce the closing of the first
tranche shortly. The investors in this funding have an option to fund up
to $30 million in the second tranche upon completion of certain business
milestones by the Company. Amarin now forecasts having sufficient cash
to fund operations for atleast the next 12 months. The directors of the
Company believe it is appropriate to prepare the financial statements on
a going concern basis. The basis of preparation assumes that the Company
will continue in operational existence for the foreseeable future.
Thomas Lynch, Chairman and Chief Executive Officer
Alan Cooke, President and Chief Operating Officer
Darren Cunningham, EVP Strategic Development and Investor Relations
Lippert/Heilshorn & Associates, Inc.
Anne Marie Fields +1-212-838-3777
Bruce Voss +1-310-691-7100
|SOURCE Amarin Corporation Plc|
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