Amarin Corporation PLC (NASDAQ:AMRN) shares jumped 11% following the announcement of an exclusive long-term licensing and supply agreement with Italian pharmaceutical company Recordati S.p.A. (BIT: RECI) for its cardiovascular drug VAZKEPA in Europe.
As part of the deal, Amarin will receive $25 million upfront, with the potential to earn up to $150 million in milestone payments contingent on Recordati reaching predefined annual commercial sales targets. The agreement grants commercialization rights across 59 European countries, where Amarin’s patent protection extends through 2039.
This partnership enables Amarin to leverage VAZKEPA’s initial success in Europe while optimizing its global operations. The company anticipates approximately $70 million in cost savings over the next year, primarily due to reduced commercialization expenses in Europe.
“We are pleased to place VAZKEPA, a drug with proven, meaningful cardiovascular benefit when added to statins, in the hands of a partner with the capabilities and experience in the cardiovascular space in Europe as Recordati,” said Odysseas Kostas, Chairman of Amarin’s Board of Directors.
Recordati, based in Milan, operates in over 150 countries, with cardiovascular treatments accounting for roughly 25% of its Specialty and Primary Care segment.
Aaron Berg, Amarin’s President and CEO, noted that the collaboration “accelerates the path to positive cash flow and strengthens our strategic position for the future.” Amarin also highlighted its solid financial position, with nearly $300 million in cash, zero debt, and ongoing revenue from multiple sources.
Amarin will maintain focus on its U.S. operations while continuing to support existing partnerships in Canada, the Middle East and North Africa, China, Australia/New Zealand, and Southeast Asia.
Barclays acted as financial advisor on the deal, with Wilke Farr & Gallagher LLP serving as legal counsel.