Amarin Corporation plc (AMRN) Income Statement

The 42% drop in 2026Q2 revenue is the steepest quarterly decline in the provided period, and it follows a pattern of erratic swings—2025Q2 saw a 7.7% increase, but 2025Q1 and 2024Q4 both contracted. This volatility suggests demand instability, possibly due to generic competition or market access issues, which investors should monitor closely. The sequential decline from $43.3M in 2026Q1 to $42.2M in 2026Q2 also points to a lack of near-term stabilization.

The gross margin collapse from 69.2% to 35.5% within four quarters is dramatic, and the negative gross margin in 2024Q4 (-15.4%) suggests inventory write-downs or one-time charges. This volatility indicates a lack of pricing power and potential supply chain disruptions, which may be eroding the company's competitive position. Compared to peers like ACAD (91.7%) and HRMY (77.2%), Amarin's margins are far below, highlighting structural disadvantages.

SG&A expenses have remained stubbornly high, ranging from $19.7M to $38.7M, while gross profit has shrunk, causing operating losses to persist. In 2026Q2, SG&A consumed 52.6% of revenue, up from 53.2% in 2025Q1, indicating that overhead is not scaling down with revenue. This suggests that the cost structure is too heavy for the current revenue base, and without significant cost cuts, operating losses will continue.

The company is spending heavily on selling and marketing relative to research, which is typical for a commercial-stage biotech but raises questions about efficiency. SG&A has not been cut proportionally to revenue declines, leading to widening operating losses. R&D spending has been relatively stable around $4-6M per quarter, suggesting a focus on maintaining the current product rather than pipeline expansion, which may limit future growth.