Amarin reported cash and cash equivalents of $201.8 million at March 31, 2013.
Amarin reported net product revenues for the quarter ended March 31, 2013 of $2.34 million under U.S. Generally Accepted Accounting Principles (GAAP). In accordance with GAAP, until Amarin has more experience in the commercialization of Vascepa, Amarin plans to recognize revenue based on the resale of Vascepa by the wholesalers to which Amarin sells Vascepa, and not based on sales from Amarin to such wholesalers. During the quarter ended March 31, 2013, the net value of Vascepa sold to wholesalers was $5.2 million, which, in accordance with GAAP, resulted in $2.9 million of deferred product revenue from Vascepa sales in the quarter ended March 31, 2013.
Consistent with industry practice, the net price of Vascepa in the quarter ended March 31, 2013 reflects the deduction of one-time discounts paid to wholesalers to stock Vascepa in advance of the launch of Vascepa on January 28, 2013 as well as the costs of Amarin's 2013 co-payment rebate card program and customary payor rebates and allowances.Cost of goods sold during the quarter ended March 31, 2013 was $1.3 million. All of the API sold during the first quarter of 2013 was sourced from a single API supplier. As previously commented, Amarin's purchases of API from that supplier in 2012 and Q1 2013 are at a higher cost/kg than scheduled future purchases from such supplier. The unusually high cost of goods percentage is attributable to start up costs, geography, special launch related discounts to wholesalers, exchange rate exposure, lower volume, our co-payment rebate card program and less favorable terms than exist with other suppliers. Amarin expects steady state gross margins to approach the high seventies to eighty percent level. In future periods, Amarin also anticipates purchasing API from BASF and Chemport, the sNDAs for which were approved in April 2013. The API cost/kg from BASF and Chemport are also significantly lower than the costs incurred for past purchases of API from our single initial supplier.
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