With sales of its lone product in a precipitous decline in the United States, Amarin has turned to an experienced local partner to boost them in Europe.
Amarin has forged a licensing deal with Italian pharma Recordati to commercialize its fish oil-derived heart pill Vascepa in Europe, where the drug is known as Vazkepa.
Recordati will pay $25 million upfront to market the product to 59 European countries. Recordati also is on the hook for $150 million in potential milestone payments, tied to specific annual sales targets, and for supply-based royalties.
Amarin’s sales of Vascepa have plummeted since it caved to generic competition in the U.S. in 2020, just three months after the FDA granted it what seemed to be a game-changing label expansion to reduce cardiovascular risks. After Amarin’s revenue peaked at $614 million in 2020, it has fallen every year since. In 2024, the company reported sales of $229 million.
With Vazkepa’s patent protection in place in Europe until 2039, Amarin believes the product still can thrive with the help of an established partner. Amarin has been marketing Vazkepa as a treatment added to statins for patients who are at risk of a cardiovascular event.
“We know from our experience, in particular from the U.S., and from the clinical profile of Vazkepa, that there is significant opportunity or growth because of the unmet need (in Europe),” Amarin CEO Aaron Berg said during a conference call on Tuesday.
Over the last few years, Amarin has attempted to build a market in Europe but with little success. In the fourth quarter of last year, the company reported just $4 million of its $62 million revenue from Europe.
“Even the biggest companies are challenged launching products in European countries,” Berg said. “It’s particularly difficult for a one-product company with no established infrastructure to start and build from scratch. It’s a long-term endeavor. This product has significant potential. But that also means it takes significant resources over a period of time.”
The partnership will allow Amarin to “streamline its global operations, which further strengthens the Company’s financial position,” it said in the release.
In addition, in the statement, the chairman of Amarin’s board, Odysseas Kostas, M.D., cited Recordati’s “experience in the cardiovascular space in Europe.” The company, which celebrates its 100th birthday next year, derives roughly 25% of its revenue from its cardiovascular portfolio.
With the move, Amarin said it will save $70 million over the next 12 months. The company touted its “financial strength,” as it has nearly $300 million in cash and no debt, it said.
“We’re sharpening our operational focus by restructuring the organization, which positions the company for greater future financial performance,” Berg said. “We continue to act in a proactive and decisive manner to identify and pursue additional strategic opportunities to drive shareholder value. Nothing is off the table.”