With its stock trading near a 52-week high, Amarin Corporation plc (ADR) (NASDAQ:AMRN) is cashing out at the top. On Monday, Amarin announced a registered underwritten public offering of its American Depositary Shares. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.
Amarin intends to use the net proceeds from the offering to expand medical education and market awareness initiatives, including, in advance of REDUCE-IT results being known, pilot testing of new promotional initiatives for potential broader application following REDUCE-IT results, to increase its inventory balances for incremental inventory build prior to REDUCE-IT results and for general corporate and working capital purposes.
In reaction, Amarin shares fell nearly 5% to $3.80 in after-hours trading Monday. AMRN has a 1-year high of $4.60 and a 1-year low of $2.81. The stock's 50-day moving average is $3.99 and its 200-day moving average is $3.56.
On the ratings front, Amarin stock has been the subject of a number of recent research reports. In a report issued on January 23, Cantor analyst Louise Chen assigned a Buy rating on AMRN, with a price target of $10, which represents a potential upside of 135% from where the stock is currently trading. Similarly, on November 2, H.C. Wainwright's Andrew Fein reiterated a Buy rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Louise Chen and Andrew Fein have a yearly average loss of -4.3% and a return of 11.2% respectively. Chen has a success rate of 47% and is ranked #4545 out of 4761 analysts, while Fein has a success rate of 52% and is ranked #498.
Amarin is a biopharmaceutical company, which focuses on the commercialization and development of therapeutics for cardiovascular health. The company's product development program leverages its extensive experience in lipid science and the potential therapeutic benefits of polyunsaturated fatty acids. It has developed and markets Vascepa capsules through wholesale.