Amarin Corp Plc (AMRN)

[BioChica]

Analyst's not happy with spending projections. This is one thing that could spoil success J.T. spending pace could outpace sales for the year.

Amarin spend guidance significantly above expectations, says Oppenheimer Oppenheimer analyst Leland Gershell says Amarin's updated guidance for an operating expenses increase of $200M-$250M relative to 2019 levels is significantly higher than Street's consensus of an increase of $150M. While its 2020 revenue guidance of $650M to $700M was reiterated, in order to break even on cash flow Amarin requires $150M in revenue per quarter without factoring inventory build and $200M revenue per quarter including inventory build, Gershell tells investors in a research note. The analyst concludes that $700M in 2020 revenue is required to break even, meaning Vascepa sales would need to beat guidance to be cash flow positive. Further, Gershell cautions investors that Amarin's spend in Q1 and 2020 will likely be heavier than expectations, diminishing its profitability. The analyst reiterates an Underperform rating on the shares with an $8 price target. The stock in premarket trading is down 28c to $19.80.

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