Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Amarin Corporation plc (ADR) (AMRN): This Drugmaker Should Go Fishing for a Marketing Partner

Page 1 of 2

The biotechnology sector is rapidly evolving, and what was a near-guarantee of success of getting a drug approved by the Food and Drug Administration 10 years ago is no longer a guarantee. Although it takes a decade or longer to bring a drug from a laboratory setting to pharmacy shelves, this represents just half the battle. The other aspect to attaining success in the biotech sector is properly marketing and pricing a drug once it’s approved. It may sound easy, but in practice, it’s been a work-in-progress for many biotech companies.

Over the previous two days, we’ve looked at chronic weight management company VIVUS, Inc. (NASDAQ:VVUS), and advanced prostate cancer treatment provider Dendreon Corporation (NASDAQ:DNDN), as two companies that missed the ball with their marketing and/or pricing. Both companies, I feel, would do well to seek out an experienced marketing partner to help increase product sales, and share in the costs of that marketing and production.

Today, in the third and final installment of three biotech companies that could desperately use a marketing partner, I would like to look more closely at Amarin Corporation plc (ADR) (NASDAQ:AMRN), and discuss why I feel it would be wise to find a big pharma friend.

Amarin Corporation plc (ADR) (NASDAQ:AMRN)Fish out of water
Amarin’s key drug is Vascepa, a fish oil capsule that was approved last July to reduce triglyceride levels in patients with hypertriglyceridemia. In late-stage trials, Vascepa delivered a placebo-adjusted median reduction in non-HDL cholesterol of 18%, and a 29% reduction in very-low-density lipoprotein cholesterol, or VLDL-C. Yesterday, an additional study from its Anchor trial demonstrated that, when combined with a statin therapy, Vascepa was effective in reducing VLDL-C by 12.2%, and small LDL particles by 13.5%, further adding to the thesis that it’s an effective adjunctive therapy in terms of lowering bad cholesterol levels.

AmarinAdmittedly, Amarin Corporation plc (ADR) (NASDAQ:AMRN) hasn’t been given much of a chance to prove Vascepa’s worth, with just four months of sales under its belt; however, I admit to being disappointed with just $2.34 million in recognized revenue in the first quarter. They did defer $2.9 million in additional sales to wholesalers, and the prescription trend is heading higher, but this launch is shaping up to be more of a saunter than a sprint.

Worries are mounting
In addition to concerns about Amarin Corporation plc (ADR) (NASDAQ:AMRN) marketing Vascepa on its own, and sales not exactly exploding out the gate, concerns persist about the effectiveness of omega3 fatty acid products in treating cardiovascular disease, and because of increasing competition.

As the Fool’s Brian Orelli has previously pointed out, a study from The New England Journal of Medicine turned up inconclusive results with regard to the effectiveness of omega3 fatty acids in reducing the risk of heart attack or stroke. Similarly, last year, the Journal of the American Medical Association published the analysis of nearly 20 clinical trials, which concluded that there was no benefit provided by omega3 fatty acids in terms of heart attack, stroke, or death prevention. Amarin Corporation plc (ADR) (NASDAQ:AMRN) is clearly going to need to overcome this data if Vascepa is to be successful.

On top of this, competition in the fish oil pill space is increasing by the day. Earlier this week, Omthera Pharmaceuticals Inc (NASDAQ:OMTH) — currently a clinical-stage biopharmaceutical company in the process of developing Epanova, a late-stage fish oil capsule – agreed to be purchased by AstraZeneca plc (ADR) (NYSE:AZN) for $323 million, with the option of receiving an additional $120 million in pipeline sales incentives. The deal is a crushing blow for Amarin Corporation plc (ADR) (NASDAQ:AMRN), which had been rumored as a takeover candidate. The deal also priced at just 45% of the overall market value of Amarin.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!