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TheStreet Open House

Amarin Reports Second Quarter 2012 Financial Results And Provides Update On Operations

Stocks in this article: AMRN

Amarin's product candidates are in various stages of development and are not available for sale or use outside of approved clinical trials, except as it relates to the FDA approval announced herein. This press release is intended for communication with investors. Nothing in this press release should be construed as marketing the use of such product candidates.

CONSOLIDATED BALANCE SHEET DATA
(U.S. GAAP)
     
  June 30, 2012 December 31, 2011
  (in thousands)
ASSETS    
Current Assets    
Cash and cash equivalents  $ 250,255  $ 116,602
Deferred tax asset 533 533
Other current assets 6,433 1,837
Total Current Assets  $ 257,221  $ 118,972
     
Property, plant and equipment, net 621 432
Deferred tax asset 10,851 4,734
Other long term assets 2,482 2,241
     
Total Assets  $ 271,175  $ 126,379
     
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)    
Current Liabilities:     
Accounts payable  $ 8,429  $ 4,419
Accrued expenses and other liabilities 9,070 4,033
Total current liabilities  $ 17,499  $ 8,452
     
Long-Term Liabilities    
Warrant derivative liability 120,214 123,125
Long term debt 127,438 ----
Other long-term liabilities 704 764
Total liabilities  $ 265,855  $ 132,341
     
Stockholders' Deficit    
Common Stock 122,844 113,321
Additional paid-in capital 593,341 449,393
Treasury Stock (217) (217)
Accumulated deficit (710,648) (568,459)
Total stockholders' deficit  $ (5,320)  $ (5,962)
     
Total Liabilities and Stockholders' Deficit  $ 271,175  $ 126,379
 
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(U.S. GAAP)
Unaudited
         
  Three Months Ended June 30 Six Months Ended June 30
  (in thousands, except share and per share amounts) (in thousands, except share and per share amounts)
  2012 2011 2012 2011
         
Revenues  $ -----   $ -----   $ -----  $ ----- 
OPERATING EXPENSES:        
Research and development(1) 14,066 5,189 18,822 9,638
Marketing, general and administrative(1) 13,635 10,025 27,662 12,751
Total operating expenses 27,701 15,214 46,484 22,389
Operating loss 27,701 15,214 46,484 22,389
Loss on change in fair value of derivative liability(2) 18,930 185,359 85,139 160,017
Interest (income) expense, net 4,317 (94) 8,268 (95)
Other (income) expense, net 52 (11) (16) (88)
Loss from operations before taxes 51,000 200,468 139,875 182,223
Provision for income taxes 2,904 1,635 2,314 1,586
Net and comprehensive loss  $ 53,904  $ 202,103  $ 142,189  $ 183,809
Loss per share:         
Basic and diluted  $ 0.38  $ 1.58  $ 1.03  $ 1.46
         
Weighted average shares:        
Basic and diluted 140,550 128,360 138,280 125,907
         
(1)  A substantial portion of the Amarin's marketing, general and administrative costs represents non-cash warrant based compensation to former officers. Excluding non-cash stock and warrant based compensation, research and development expenses were $12,924 and $4,959 for the three months ending June 30, 2012 and 2011, respectively and marketing, general and administrative expenses were $8,085 and $3,400, respectively, for the same periods. 
(2)  Non-cash charges result from changes in the fair value of the warrant derivative liability. This liability is revalued at each reporting period and, upon exercise of warrants, is reclassified at fair value from liability to stockholders' equity. These warrants are valued using the Black-Scholes option pricing model, they are classified for accounting purposes as financial derivatives because, under certain circumstances, the exercise price of the warrants could increase. 

The following is a reconciliation of the non-GAAP financial measures used by Amarin to describe its financial results determined in accordance with United States generally accepted accounting principles (GAAP). An explanation of these measures is also included under the heading "Use of Non-GAAP Adjusted Financial Information" above.

RECONCILIATION OF NON-GAAP LIABILITIES
Unaudited
     
  June 30, 2012 December 31, 2011
  (in thousands)
Current Liabilities:     
Accounts payable  $ 8,429  $ 4,419
Accrued expenses and other liabilities 9,070 4,033
Total current liabilities  $ 17,499  $ 8,452
     
Long-Term Liabilities    
Warrant derivative liability 120,214 123,125
Long term debt 127,438 ----
Other long-term liabilities 128,142 764
Total liabilities – GAAP  $ 265,855  $ 132,341
Warrant derivative liability (120,214) (123,125)
Total liabilities – non GAAP  $ 145,641  $ 9,216
     
  Three Months Ended June 30 Six Months Ended June 30
  (in thousands, except share and per share amounts) (in thousands, except share and per share amounts)
  2012 2011 2012 2011
         
Net loss for EPS 1 – GAAP  $ 53,904  $ 202,103  $ 142,189  $ 183,809
Share based compensation expense (4,834) (1,820) (8,708) (3,360)
Warrant compensation expense (1,858) (5,035) (4,232) (4,356)
Loss on change in fair value of derivative (18,930) (185,359) (85,139) (160,017)
Adjusted net loss for EPS 1 – non GAAP 28,282 9,889 44,110 16,076
1 basic and diluted        
Loss per share:         
Basic and diluted – non GAAP  $ 0.20  $ 0.08  $ 0.32  $ 0.13
         
Weighted average shares:        
Basic and diluted 140,550 128,360 138,280 125,907
CONTACT: Investor contact information:
         Stephen D. Schultz
         Senior Director, Investor Relations and Corporate Communications
         Amarin Corporation
         In U.S.: +1 (860) 572-4979 x292
         investor.relations@amarincorp.com
         
         Lee M. Stern
         The Trout Group
         In U.S.: +1 (646) 378-2922
         lstern@troutgroup.com
         
         Media contact information:
         David Schull or Martina Schwarzkopf, Ph.D.
         Russo Partners
         In U.S.: +1 (212) 845-4271 or +1 (212) 845-4292 (office)
         +1 (347) 591-8785 (mobile)
         david.schull@russopartnersllc.com
         martina.schwarzkopf@russopartnersllc.com

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