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Amarin is a biotech that had a purified form of omega-3 fatty acid Eicosapentaenoic acid called icosapent ethyl, under the brand name Vascepa. The stock popped in 2018 after the REDUCE-IT trial results, showing a 25% reduction in major cardiovascular events. In March 2020, the stock fell 70% when a Nevada District Court judge rules that Amarin's patents are invalid because the science was "obvious" to experts. In September 2020, the court of appeals upheld this invalidation of the patents, and the Supreme Court refused to hear the case back in 2024 about invalidation of the patents. Generic versions of icosapent ethyl flooded the market in the US.
The company was left for dead. The company now has a market cap of $306 million, with $286 million in cash on the balance sheet, $127 million of receivables, and $184 million of inventory, and $200 million of total liabilities. The net current asset value (NCAV) is $397 million, about 30% higher than the current market cap.
Interestingly, despite generic competition, Amarin has been able to hang on to 50% of the market share for icosapent ethyl. Despite the ruling of patent invalidation, Amarin decided to go ahead with a case against one of the generic competitors, Hikma pharmaceuticals, for patent infringement. On January 16, 2026, the U.S. Supreme Court granted certiorari for this case, meaning the supreme court will hear arguments and it is now an active case before the supreme court.
Meanwhile, Amarin still has patent protection in Europe into the 2030s. They signed a licensing and supply deal with Recordati, an Italian pharma company, in June 2025. This should handle promotion and distribution inside of Europe, at a lower cost to the company.
Sales have just put in the first two consecutive quarters of year over year growth since 2020. The company has been cutting costs, with the cost-cutting program ending by mid year 2026. The company says they have hit positive cash flow in Q4 2025. And in the most recent announcement from January 8, 2026, they said "We believe we are on track for sustainable positive annual cash flow in 2026, driven by continued efficient revenue generation across all markets, a full year of cost savings from our restructuring plan, and the fact that the majority of the expenses associated with that plan were incurred in 2025".
This might be an interesting situation, where a left for dead biotech, trading near cash value, below NCAV, has turned into a reasonably profitable business, and has some upside optionality from the upcoming Supreme Court case.
Not sure if I want to bite yet, but I think it is interesting.