Summary
Vascepa is approved as a treatment for hypertriglyceridemia. Despite a slow initial ramp up, sales of Vascepa is increasing drastically.
Amarin recently posted the stellar data for the Phase 3 REDUCE-IT trial, thereby positioning Vascepa to gain a label expansion by year-end.
We strongly believe that the supplemental New Drug Application for Vascepa will be approved by late 2019.
The stock enjoyed a robust rally subsequent to a potential Pfizer acquisition, but the share price is trending down.
We present a fundamental analysis of Amarin and evaluate its acquisition prospects through Integrated BioSci Investing's A5 Criteria.
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Those who do not remember the past are condemned to repeat it. - Benjamin Graham
On Jan. 10, 2019, the shares of Amarin Corporation (AMRN) rallied over 22% due to the news that Pfizer (PFE) is interested in buying out the company. Nevertheless, the share price has been trending down in the subsequent days. In bioscience investing, a merger and acquisition (M&A) is a special catalyst that causes significant volatility in the stocks' trading. If an acquisition is consummated, investors usually gain over 50%. This is because a large company typically pays a hefty premium to accumulate all common shares of a smaller firm. Conversely, if a deal falls out, the stock is most likely to trade lower in the coming months. Moreover, the stock can trend down if the market chatters about an acquisition is simply a rumor. Sometimes, a company also executes a "PR stunt" in the efforts to increase its share price. In this article, we'll feature an analysis of Amarin's fundamentals and its M&A prospects using our A5 framework.
