Is Amarin Corp. (AMRN) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Small Cap Value Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Small Cap Value Strategy outperformed the Russell 2000 Value Index, the Strategy’s benchmark, during the third quarter of 2021. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Investments Small Cap Value Strategy, in its Q3 2021 investor letter, mentioned Amarin Corporation plc (NASDAQ: AMRN) and discussed its stance on the firm. Amarin Corporation plc is a Dublin, Ireland-based biopharmaceutical company with a $1.3 billion market capitalization. AMRN delivered a -28.22% return since the beginning of the year, while its 12-month returns are down by -29.94%. The stock closed at $3.51 per share on December 24, 2021.

Here is what ClearBridge Investments Small Cap Value Strategy has to say about Amarin Corporation plc  in its Q3 2021 investor letter:

“The Strategy benefited from its underweight in health care, which made the most negative contribution in the benchmark. Within health care, however, biotechnology company Amarin had a strong quarter. Amarin received approval for its lead drug in the EU and is launching its sales effort in Germany. The company has cut costs from its U.S. business, where a tragic patent ruling undermined Amarin’s intellectual property and allowed generics to enter the market before it was established. Now, with no companies promoting icosapent ethyl in the U.S., sales have stalled, resulting in Amarin being profitable, but Americans unnecessarily left without a lifesaving drug. The European opportunity is large enough to account for a much higher valuation than Amarin currently enjoys.”

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Based on our calculations, Amarin Corporation plc (NASDAQ: AMRN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. AMRN was in 21 hedge fund portfolios at the end of the third quarter of 2021, compared to 21 funds in the previous quarter. Amarin Corporation plc (NASDAQ: AMRN) delivered a -35.48% return in the past 3 months.

In November this year, we published an article that included AMRN in Dov Gertzulin Portfolio: Top 5 Stocks. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.