Amarin Corporation plc (ADR) (AMRN): AstraZeneca plc (ADR) (AZN) is Headed in the Right Direction

Acquisitions

The company has so far avoided any major acquisitions. However, considering the fact that AstraZeneca plc (ADR) (NYSE:AZN)cannot expect any real revenue growth from its current product line or its pipeline candidates, acquisitions seem to be the only option. It is highly likely that the company will make a major move in the three areas where it plans to focus in the future.

There have been rumors that it might make a move for Shire PLC (ADR) (NASDAQ:SHPG) , a specialty biopharmaceutical company. The company has a market capitalization of approximately $17 billion, and its share price can soar if AstraZeneca shows interest. The stock is currently trading 14% below its 52-week high, and at approximately 20% discount to the mean sell side target price. Shire investors can expect anywhere from $120-$130 if any acquisition takes place.

If the company attempts an acquisition in its three key focus areas, Amarin Corporation plc (ADR) (NASDAQ:AMRN) and Oncolytics can be good potential targets. Amarin Corporation plc (ADR) (NASDAQ:AMRN) has recently commercialized its TGT reducing drug Vascepa. The drug can be a billion dollar plus product, and the company is available at pretty cheap valuations. Investors were expecting Amarin Corporation plc (ADR) (NASDAQ:AMRN) be acquired last summer, but it didn’t happened due to lack of an NCE decision.

Bottom line

AstraZeneca plc (ADR) (NYSE:AZN)’s management is definitely headed in the right direction, but there is still a long road ahead. I will recommend that investors wait for more solid pipeline information before making a move.

The article AstraZeneca is Headed in the Right Direction originally appeared on Fool.com and is written by Mohsin Saeed.

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