Here's Why I Wouldn't Touch Amarin With a 10‑Foot Pole Given Its Patent and Competition Risks

By Reuben Gregg Brewer – Mar 7, 2026 at 1:15AM ESTKey PointsAmarin has one drug, and it has lost key patent protections.The company is cutting costs in an effort to generate positive cash flow.Amarin (AMRN 0.78%) is a drug company that is in a particularly precarious position. This fact is highlighted by the company's recent move to restructure its operations in an effort to cut costs. And Vascepa, the one drug it has to sell, is already facing generic competition in the United States. Most investors would be better off with a larger drug company. Amarin has some positives to offer Perhaps the most positive thing about Amarin is its balance sheet. The company is carrying no long-term debt, has a cash balance of nearly $135 million, and owns short-term investments worth just under $168 million. In short, it is in a very strong financial position and can likely sustain its business for years to come. Image source: Getty Images. Meanwhile, despite the headwinds Vascepa faces in the U.S. market, it is a revenue-generating product. In 2025, Amarin had product sales of nearly $183 million. And a restructuring effort in 2025 has helped the company reduce costs. Management believes the restructuring will help it to generate positive free cash flow in 2026. A pharmaceutical company with no debt and positive free cash flow would normally be hard to complain about. I still wouldn't touch Amarin with a 10-foot pole For the most part, the good news ends there. The big risk is that the company's sales stood at $285 million two years ago. So there's been a material decline on the top line. The fact that its only drug has faced generic competition in the U.S. market has a lot to do with the revenue decline. With no other product to lean on, Amarin has little choice but to pull back on spending or its strong financial situation could quickly start to deteriorate. ExpandNASDAQ: AMRNAmarin PlcToday's Change(-0.78%) $-0.11Current Price$14.07Key Data PointsMarket Cap$293MDay's Range$13.84 - $14.1952wk Range$7.08 - $20.90Volume3.4KAvg Vol94KGross Margin55.23% Essentially, the company is doing the right thing by trying to milk every dollar out of the only drug it has to sell. But it isn't working from a position of operational strength. The big risk is that the company's revenue declines continue, with the company simply shrinking its business along the way to sustain itself. That's not likely to lead to a good outcome for shareholders. Go with a bigger drug company To be fair, the drug cycle that Amarin is dealing with is completely normal in the pharma sector. The problem is that the company has just one drug to sell. If it were a larger company with a broader drug portfolio, it would have a stronger foundation from which to work. If you are willing to take on the risk associated with Amarin, you'd likely be better off buying an out-of-favor drug maker like Pfizer (PFE +1.71%) instead. Pfizer has patent expirations coming up and had a material GLP-1 drug setback. However, it has a broad portfolio of drugs, and management was able to quickly pivot and acquire a new GLP-1 drug candidate. Pfizer has proven, once again, that it can pivot as needed. Essentially, unlike Amarin, Pfizer is working from a position of strength.Read NextMar 12, 2025 •By Motley Fool TranscribingAmarin Plc (AMRN) Q4 2024 Earnings Call TranscriptOct 31, 2024 •By Motley Fool TranscribingAmarin Plc (AMRN) Q3 2024 Earnings Call TranscriptJul 31, 2024 •By Motley Fool TranscribingAmarin Plc (AMRN) Q2 2024 Earnings Call TranscriptMay 1, 2024 •By Motley Fool TranscribingAmarin Plc (AMRN) Q1 2024 Earnings Call TranscriptApr 3, 2024 •By Eric VolkmanWhy Amarin Stock Was Rocketing Higher on WednesdayFeb 29, 2024 •By Motley Fool TranscribingAmarin Plc (AMRN) Q4 2023 Earnings Call TranscriptAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedAmarin PlcNASDAQ: AMRN$14.07(-0.78%)-$0.11PfizerNYSE: PFE$27.07(+1.71%)+$0.46*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.