Amarin Corporation PLC (NASDAQ:AMRN) now has FDA approval for its triglyceride drug, Vascepa, and it is ready to take it to market early in 2013. But the stock hasn’t exactly spiked since the approval, and only today has the stock made a significant move, and that mainly had to do with the company’s earnings report and projections for the future as the company transfroms from a clinical testing and drug-development company into a commercial drug production company. Does today’s news means it’s time to get bullish on the stock?
Amarin Corporation PLC (NASDAQ:AMRN) stock jumped nearly 19 percent at one point during Thursday’s trading mostly because of what came out of the earnings report conference call. After all, as Amarin has been a clinical testing company it didn’t report any revenue, a net EPS of minus-38 cents with about $250 million in cash on hand. The jump came from the reports by the company that it is looking to start commercial development of Vascepa early next year, and it is expecting a decision from the FDA next week to determine the company’s patent rights for Vascepa – whether the company will have three- or five-year exclusivity in the U.S. market. The same application process is moving forward in Europe, as well. Once the decision comes down, the value of the drug, and thus the value of the company, will be determined by how long Vascepa will be in the market without competition.
It seems that feedback about the drug has been positive in that it should be a tough competitor for the rival drug Lovaza by GlaxoSmithKline, which has gathered $1 billion in annual sales from the drug. The research results seem to compare favorably with Lovaza, especially in the area of reducing “bad” cholesterol.
Amarin Corporation (NASDAQ:AMRN) has indicated a desire to develop a marketing partnership with another firm – whether it becomes just that, or it leads to an acquisition by a bigger company is always a question. Amarin seems to be positioned well for a possible acquisition based on its current value and the potential for success with Vascepa.
To be sure, there have been some successes and colossal failures with drugs and drug companies over the years. But as the activity today shows, it seems that investors see Amarin as a good bet for a win, and Amarin Corporation PLC (NASDAQ:AMRN) may be in a good position to deliver that, if all the numbers and comments add up with each other in the end. Maybe one of the final pieces to the puzzle comes next week with the FDA’s exclusivity ruling.