RNS Number : 8241U
Amarin Corporation Plc
19 May 2008
AMARIN ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND FULL YEAR 2007
DUBLIN, Ireland, May 19, 2008 - 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").
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
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 ended31 December Twelve months ended31 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 & 3,222 2,516 14,109 11,311
Administrative
Amortization of intangible 170 169 676
assets -
Impairment of intangible fixed 8,784
assets (non-cash) - - -
Reorganization costs 1,898 1,898
- -
Share-based compensation 865 470 5,001 2,201
(non-cash)
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 & 5,613 3,001 28,625 13,462
administrative
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 * 11,013 8,833 9,784 8,234
basic*
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
2006
2007
$*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 6,733 8,625
liabilities
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 42,254 49,559
liabilities
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 at least 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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