Amarin Reports First Quarter 2011 Results

CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(U.S. GAAP)

Unaudited

Three Months Ended March 31

(in thousands, except share and per share amounts)

2011

2010

Revenues

$

-----

$

-----

OPERATING EXPENSES:

    Research and development(1)

4,449

5,152

    Marketing, general and administrative(1)

2,726

2,253

         Total operating expenses

7,175

7,405

Operating loss

(7,175)

(7,405)

Gain (loss) on change in fair value of derivative liability(2)

25,342

(2,112)

    Interest income (expense), net

1

(14)

    Other income, net

77

337

Income (loss) from operations before taxes

18,245

(9,194)

Benefit (provision) for income taxes

(49)

(17)

Net and comprehensive income (loss)

$

18,294

$

(9,211)

Income (loss) per share:

Basic

$

0.15

$

(0.09)

Diluted

0.12

(0.09)

Weighted average shares:

Basic

123,426

98,782

Diluted

151,500

98,782

1. Excluding non-cash stock and warrant based compensation, research and development expenses were $4,149 and $4,780 for the three months ended March 31, 2011 and 2010, respectively and marketing, general and administrative expenses were $2,165 and $1,926, respectively, for the same periods
2. Non-cash charges resulting 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.