Amarin (NASDAQ:AMRN) Corporation plc (NASDAQ:AMRN), a pharmaceutical company, has been granted an extension by Nasdaq to meet the exchange's minimum bid price requirement, according to a recent SEC filing. The company now has until May 19, 2025, to regain compliance with the Nasdaq's bid price rule.
The Nasdaq Listing Qualifications Department issued the extension notice today, allowing Amarin additional time to boost its American Depositary Shares (ADS) closing bid price to at least $1.00 for a minimum of 10 consecutive business days. The company's non-compliance with the $1.00 minimum bid price rule had put it at risk of being delisted.
As part of the compliance effort, Amarin's ADS will be transferred from the Nasdaq Global Market to the Nasdaq Capital Market, effective Monday. The ADS will continue to be traded under the ticker symbol "AMRN."
Amarin is actively monitoring its share price and is considering options to address the bid price deficiency, including a potential reverse stock split. Despite these efforts, the company has cautioned that there are no guarantees of compliance achievement or assurance against possible delisting from the Nasdaq.
This development follows the company's ongoing efforts to maintain its standing on the stock exchange and reflects the challenges it faces in meeting the stringent requirements set forth by Nasdaq. The information is based on a press release statement from the SEC filing.
In other recent news, biopharmaceutical company Amarin Corporation reported a decrease in its third-quarter revenue for 2024 due to increased competition from generic drugs in the U.S. market. The company's Q3 total net revenue was $42.3 million, a drop from the previous year's $66.1 million. Despite this, Amarin maintains over 50% market share in the IPE market, with a strong focus on expanding access to its cardiovascular disease treatment, VASCEPA/VAZKEPA, particularly in the European market.
The company reported a GAAP net loss of $25.1 million, attributed to a decrease in U.S. product revenues and a gross margin drop to 38%. Nevertheless, Amarin's financial position remains stable, with $306 million in cash and investments. The company is also actively pursuing partnerships, especially in Australia and China, to bolster international growth.
These recent developments highlight Amarin's strategic efforts to navigate the competitive landscape while maintaining a robust market presence. The company has scheduled a virtual analyst and investor event for November 14th to discuss its growth strategies. Despite the challenges, Amarin remains committed to addressing the global unmet need for cardiovascular disease treatment.
InvestingPro Insights
Recent data from InvestingPro sheds light on Amarin Corporation's financial situation, providing context to its Nasdaq listing challenges. As of the last twelve months ending Q3 2023, Amarin's revenue stood at $241.02 million, with a concerning revenue decline of 25.25% over the same period. This decline aligns with one of the InvestingPro Tips, which notes that analysts anticipate a sales decline in the current year.
The company's market capitalization is currently $215.91 million, reflecting its struggle to maintain investor confidence. An InvestingPro Tip highlights that Amarin's stock price movements are quite volatile, which is evident in its price performance. The stock is trading at just 40.07% of its 52-week high, underscoring the downward pressure on its share price that led to the Nasdaq compliance issue.
Despite these challenges, Amarin does have some financial strengths. An InvestingPro Tip points out that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates this difficult period. Additionally, Amarin's liquid assets exceed its short-term obligations, potentially offering a buffer against immediate financial pressures.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Amarin, which could provide valuable insights into the company's prospects and challenges beyond its Nasdaq listing concerns.
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