16.94 +0.11 (0.65%)
After hours: 5:54PM EDT
|Bid||16.80 x 3200|
|Ask||16.83 x 1000|
|Day's Range||16.80 - 17.65|
|52 Week Range||2.35 - 23.34|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Last week, anti-cholesterol drugmaker Amarin (AMRN) reported a better-than-expected $0.07-per-share loss on $73.3 million in sales -- also better than expected, and up 67% year over year on strong sales of its Vascepa fish oil pill. And yet, the stock plunged nearly 6% after results came out.Wall Street thinks that was a mistake -- and perhaps, an opportunity.To see why, let's take a quick look at two reactions to the earnings report from two different Wall Street analysts. We'll begin with Jefferies.Jefferies analyst Michael Yee makes no bones about it: "Q1 was a beat." And yet, the analyst notes that given strength in "scripts" written for Amarin products in Q1, some analysts were actually looking for Amarin to report even better sales than the $73 million it eventually reported -- sales of as much as $75 million to $80 million. Yet, Yee argues that Q1 sales could in fact have reached "$75-80M" had Amarin had enough product on hand to meet demand. (The analyst cites inventory "drawdown" in the quarter as evidence that the company didn't have enough product on hand to meet all the demand it encountered in Q1).In fact, says Yee, "true 'demand' is more like $80-85M" and, once Amarin makes enough product to satisfy demand, as much as $10 million in additional sales could quickly materialize, pushing Q2 sales to something "more like $95M," resulting in "a strong QQ jump ... based on normalization of inventory."Jefferies peer Stifel is similarly optimistic -- indeed, some of its comments sound even more optimistic than Yee, albeit Stifel's Derek Archila's price target ($27 with a 'buy' rating) is a bit more conservative than Yee's target of $30 (also with a 'buy rating'). (To watch the analysts' track records, click here)As Archila notes, Q1 is a seasonally weak quarter for Amarin, yet "script data ... over the first three weeks of the quarter" still showed RRx prescriptions up 52% year over year, TRx prescriptions up 62%, and NRx prescriptions growing 74%. Given the rapid rate of growth, Archila feels confident in raising its sales estimates for Amarin for this year to $375 million, and predicting 2020 sales of $600 million. Furthermore, the analyst raised its estimate for fiscal 2020 earnings -- the year in which it expects Amarin to turn profitable -- by 32%, to $0.45 per share."Vascepa is in the early innings of an accelerating growth phase," argues the analyst, and "it has only been a short time since the REDUCE-IT data were published." So the company's best years of growth may still lie ahead. In this regard, Archila notes that Health Canada granted Vascepa priority review last week, and there's still a chance the US Food and Drug Administration will follow suit.Archila adds that the Institute for Clinical and Economic Review (ICER) is reviewing the potential for using Vascepa "on top of other cardiovascular disease therapies," which could boost sales even further. While a positive outcome is not certain, Archila believes that given Vascepa's "relatively low cost," ICER could determine that administering Vascepa "is a highly cost-effective approach" to treating cardiovascular disease.Such a conclusion could be just the thing to turn this week's Amarin sellers into future buyers of the stock.Additional regulatory endorsements of Amarin's wares would make Archila's predictions of $375 million in 2019 sales (64% YOY growth) and $600 million in 2020 sales 60% growth more likely. As economies of scale begin kicking in, that would make even more exponential growth in profits more likely.Bottom lineAt $18 a share and 40 times estimated earnings two-years-from-now, Amarin stock doesn't look exactly cheap today. Still, with analysts predicting more than $2 a share in earnings by 2023, the stock's valuation looks increasingly more palatable the farther out you look. Many cannabis companies are making their way towards the medical sector as a source of inspiration to find the benefits of cannabis plant use for patients with various diseases. To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More recent articles from Smarter Analyst: * The Clouds Are Getting Darker for Tesla (TSLA) Stock * Amazon (AMZN) Continues Diversifying; J.P. Morgan Bullish on the Stock * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy
The biotechnology space is an exciting one with incredible potential for investors. One strategy that many have found success with in the biotech investing space is making moves around catalysts. This involves looking for companies with data readouts, PDUFA dates, and other upcoming releases that will likely move the needle for the stock.
On a per-share basis, the Dublin-based company said it had a loss of 7 cents. Losses, adjusted for stock option expense, were 5 cents per share. The biopharmaceutical company posted revenue of $73.3 million ...
If you want to know who really controls Amarin Corporation plc (NASDAQ:AMRN), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Convers...
Is Amarin Corporation plc (NASDAQ:AMRN) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably but historically their consensus stock […]
Both JPMorgan and Deloitte expect strong merger and acquisition activity ahead, and analysts believe that these stocks are likely targets.
How Sangamo Therapeutics and Amarin Compare(Continued from Prior Part)Expense guidance In its fourth-quarter earnings presentation, Sangamo Therapeutics (SGMO) guided for operating expenses of $210 million–$220 million in fiscal 2019. At the end of
How Sangamo Therapeutics and Amarin Compare(Continued from Prior Part)Growth strategy In its fourth-quarter earnings presentation, Sangamo Therapeutics (SGMO) highlighted its focus on developing innovative genomic medicines targeting conditions in
Benzinga has examined prospects for many investor favorite stocks over the past week. Bullish calls included a leading cruise line operator and a refreshed media outfit. And bearish calls included leaders ...
Here's a roundup of top developments in the biotech space over the last 24 hours. Scaling The Peaks (Biotech stocks hitting 52-week highs on March 28) Baxter International Inc (NYSE: BAX ) Constellation ...
In the latest Amarin (NASDAQ:AMRN) news, one of the company's medications is making waves as a major health organization in the U.S. is backing it.The biopharmaceutical company, which has its U.S. headquarters in Bedminster, New Jersey, had been testing its fish oil-derived medication Vascepa, which failed to impress for the most part. However, the American Diabetes Association (ADA) said on Wednesday that it has updated its 2019 treatment guidelines, recommending Vascepa for patients with diabetes, as well as atherosclerotic cardiovascular disease.The ADA said the Amarin drug may help patients with high triglyceride levels, lowering their heart risks. The agency came to its conclusion following the Reduce-It trial, which showed that Vascepa had the potential to cut the risk of major adverse CV events when it's given to patients who are already on statin therapies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe ADA's recommendation is listed in its 2019 iteration of the Standards of Medical Care in Diabetes. It hasn't been an easy road for the Reduce-It trial data, as Amarin announced back in November that the drug reduced the risk of a major CV event by 25% when compared to the placebo-this includes CV-related death, heart attack, stroke and others.However, critics of Vascepa and the trial claim that the dummy pill used in the study had a negative effect in the results of the control group, thus boosting the medication's effectiveness profile.AMRN stock is up 4% Thursday. More From InvestorPlace * 7 Marijuana Stocks to Play the CBD Trend * 7 Reasons to Buy Housing Stocks in 2019 * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos Compare Brokers The post Amarin News: Why AMRN Stock Is Surging Today appeared first on InvestorPlace.
were up more than 7% in trading Thursday after the company's Vascepa drug was added to the American Diabetes Association's Standards of Medical Care in Diabetes list for 2019. The drug, along with a specialized diet, has been shown to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. Amarin has agreed to give the Food and Drug Administration data to support the ADA's finding in order expand Vascepa's FDA label to include its recommendation.