Stifel 'Taking Profits' on Amarin Following FDA Approval, Downgrades to Hold

Stifel analyst Derek Archila downgraded Amarin (AMRN) to Hold from Buy with a price target of $28, up from $26 after the FDA approved Vascepa for an expanded indication as an adjunct therapy in patients on statins with high triglycerides who have established CV disease and also for diabetic patients with greater than 2 cardiovascular risk factors.

While he said "there is no doubt in our mind Vascepa will be a multi-billion dollar product," Archila prefers to "take profits" at the stock's current valuation near $11B fully diluted.

He also points to unpredictability around Vascepa's intellectual property litigation, the drug's "relatively short" exclusivity period, and AstraZeneca's (AZN) Epanova CVOT results next year as downside risks.