DUBLIN, Ireland, May 19 /PRNewswire-FirstCall/ -- Amarin Corporation plc ("Amarin" or "Company") today reported financial results for the first quarter ended March 31, 2008. For the first quarter of 2008, Amarin reported a net loss of $8.2 million, or $0.59 per share, compared with a net loss of $8.8 million, or $0.97 per share, in the first quarter of 2007. The decrease in net loss for the quarter is primarily due to reduced research and development expenditure. The net loss per share amounts reflects the one-for-ten reverse stock split which took effect on January 18, 2008.
Three months ended March 31, 2008
For the quarter ended March 31, 2008, Amarin's operating loss was $7.8 million, compared with an operating loss of $9.7 million for the same period in 2007. The decrease for the quarter compared to the corresponding period in 2007 is primarily due to a reduction in research and development expenditure due to the completion of the Company's Phase III trials for AMR101 in Huntington's disease.
Research and development costs of $2.6 million for the first quarter 2008 reflect third-party research contract costs, staff costs, preclinical study costs, clinical supplies and the costs of conducting clinical trials. The $1.8 million decrease for the first quarter 2008 from the comparative period of 2007 is primarily due to the completion of the Phase III trials in Huntington's disease in 2007. Research and development costs for the first quarter 2008 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. Selling, general and administrative costs for the first quarter 2008 of $4.2 million increased by $0.2 million compared to the same period in 2007. As previously announced, on March 3, 2008, the Company signed an exclusive license with Scarista Limited for the development and commercialization rights to certain rights in the field of lipid science. This transaction involved an upfront fee of $0.5 million, all of which was included in selling, general and administration costs in the quarter.
Non-cash share-based compensation expense decreased $0.1 million to $1.0 million when compared to the same period in 2007.
Finance expense comprises interest on convertible debt and amortisation of costs associated with the convertible debt issued in December 2007.
As at March 31, 2008, the Company had cash balances of $8.8 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 financing 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.
CONTACT: 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
