Amarin initiated with a Neutral at Chardan Capital Markets; tgt $8.50 (7.93 )
Chardan Capital Markets initiates AMRN with a Neutral and price target of $8.50. Although an acquisition of Amarin could reward investors with a premium above the current share price, firm remains on the sidelines as we believe the chance of a near-term strategic deal is low. Firm believes AMRN's stock will remain under negative pressure, based on the risk of a slow launch and potential generic competition.
Saw a note on streetinsider if you Google Chardan Capital Markets AMARIN and look for streetinsider it is there.
The note on generics is exactly why the stock is not finding traction. Wall Street believes Lovaza is a competitor to Vascepa and that generics are happening in 2015 will be a detriment.
The reality is generics of Lovaza will not be covered by insurance for the Anchor indication. Vascepa also has 2 years to establish itself as a safer alternative to Lovaza. AMRN has two years to put out info showing how pure EPA is better for you than DHA/EPA.
Since Vascepa becomes a BB drug based on Anchor indication and generics will not be in the Anchor indication until the 2020's at the earliest the comment on generics shows a poor understanding of Vascepa vs. Lovaza. So to me the analyst is not very detailed oriented and thus not really following when it comes to AMRN.