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Amarin Announces Financial Results for Fourth Quarter and Full Year 2007
Date:5/19/2008

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.

About Amarin

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").

Disclosure Notice

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

ended ended

31 31

December December

2007 2006 2007 2006

Total Total Total Total

$'000 $'000 $'000 $'000

Revenue - 400 - 500

Gross profit - 400 - 500

Operating expenses:

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 -

Share-based compensation

(non-cash) 865 470 5,001 2,201

Operating expenses 7,733 7,081 40,733 28,568

Categorized as follows:

Total research

& 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

2007 2006

$'000 $'000

1. Selected Balance Sheet Data

Assets

Non-current assets

Property, plant and equipment 595 314

Intangible fixed assets 19,916 9,636

Available for sale investment 15 18

20,526 9,968

Current assets

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

Liabilities

Non-current liabilities

Provisions 606 110

Other liabilities 36 -

Convertible debt 2,051 -

Total non-current liabilities 2,693 110

Current liabilities

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

Equity

Capital and reserves

attributable to equity

holders

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

consolidation.

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.

Contacts:

Amarin +353(0)1-669-9020

Thomas Lynch, Chairman and Chief Executive Officer

Alan Cooke, President and Chief Operating Officer

Darren Cunningham, EVP Strategic Development and Investor Relations

investor.relations@amarincorp.com

Investors:

Lippert/Heilshorn & Associates, Inc.

Anne Marie Fields +1-212-838-3777

Bruce Voss +1-310-691-7100

Media:

Powerscourt +44(0)207-250-1446

Rory Godson

Paul Durman


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SOURCE Amarin Corporation Plc
Copyright©2008 PR Newswire.
All rights reserved

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