Amarin – 400% Growth And More On The Way

Amarin Corporation, Plc. (AMRN – Research Report) is up 467% since the end of September. Really, that’s the only way to start a story on this small biopharmaceutical company.

The stock had languished below $5 per share since 2007, and stayed that low during the whole seven years of the REDUCE-IT study, from November 2011 to this past autumn. When the study’s results became known, the stock skyrocketed. In recent days, it has slipped back from its $22 peak, and is now trading just under $17. That decline is likely a result of profit taking, as investors sold to take advantage of the massive gains.

Successful Clinical Trials Brought Results

The reason for those massive gains is simple. The REDUCE-IT clinical trial showed that Vascepa, Amarin’s sole product, was successful beyond the wildest dreams of its inventors and investors.

Vascepa is an Omega-3 fatty acid drug (the chemical name is ethyl eicosapentaenoic acid), derived from the fatty acids that occur naturally in some fish oils. It is not the actual fish oil, nor is it a dietary supplement. Vascepa is a medical drug, intended as a preventative treatment for cardiovascular disease and hypertriglyceridemia. Vascepa was approved by the FDA in 2012, but as the multi-year REDUCE-IT study was in its early stages, the drug found only limited distribution.

REDUCE-IT, with its spectacular results, promises to change that outlook. The study showed, over a seven year period, that Vascepa reduced cardiovascular death by 20%, reduced total heart attacks (fatal and non-fatal) by 31%, reduced total strokes (fatal and non-fatal) by 28%, and reduced hospitalizations for urgent or emergency cardiovascular care by more than 32%. In short, the RECUDE-IT study shows that Vascepa surpassed the target goal of 25% relative risk reduction.

Superb Upside for Investors

At this point, the question for investors is, “Is it too late to invest in Amarin?” The answer is simple: It is not. Despite AMRN’s 490% gain over the last few months, the stock still holds an impressive 105% upside potential. The average target price, $34.80, is more than double the current share price of $16.95.

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