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.

Is It Time to Be Bullish on Amarin Corporation (AMRN)?

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 (ADR) (NASDAQ:AMRN)

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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.