|Bid||0.00 x 1100|
|Ask||0.00 x 900|
|Day's Range||17.91 - 18.35|
|52 Week Range||13.76 - 26.12|
|Beta (5Y Monthly)||0.84|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 23, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||30.20|
Amarin Corporation plc (AMRN) today announced that it will host a conference call with members of Amarin senior management to discuss the company's fourth quarter and full year 2019 financial results and provide an operational update on Tuesday, Feb. 25, 2020, at 4:30 p.m. ET. The conference call will follow the anticipated release of the company's financial results earlier that day. Amarin will host a conference call February 25, 2020, at 4:30 p.m. ET to discuss this information.
“With AMRN trading [about] 27% lower since November, we see now as an attractive time to buy,” Citi Research analyst Joel Beatty wrote.
The bull thesis on bio-pharmaceutical company Amarin (NASDAQ:AMRN) for 2020 is pretty simple. The company's core drug, Vascepa, is in the early innings of a huge multi-year growth trajectory. In 2020, several catalysts will meaningfully accelerate Vascepa's growth trajectory. As they do, the company's revenues and profits will continue to soar.Source: Pavel Kapysh / Shutterstock.com Amarin stock isn't fully priced for this growth. Thanks to concerns about international expansion and the robustness of Vacepa's intellectual property, Amarin stock is actually trading at a discount to the company's growth potential.Such concerns are overstated, and will soon be forgotten as Amarin sustains huge revenue and profit growth over the next few years. As these concerns fade, so will the persistent discount in Amarin stock, and shares will pop.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow much higher can they go? My numbers suggest that a $23 price tag is doable this year. The stock currently trades hands at $18. That adds up to about 30% upside potential over the next twelve months. Vascepa Promises Big Growth in 2020Long story short, Amarin has cracked the ultra-valuable fish oil code with Vascepa, and this drug will power huge growth over the next few years. * 7 Exciting Stocks to Buy for Aggressive Investors Taking a step back, cardiovascular (CV) health is one of the biggest unaddressed health problems in the world, with CV disease being the No. 1 killer of men and women around the world. Some 40 million Americans take statins, or medicine aimed at lowering blood cholesterol. But, given the fatality figures, statins aren't enough; a bigger solution is needed. Over the past few years, bio-tech companies of all shapes and sizes have tried to find that solution in the fish oil market, since fish oil pills are easy and cheap to distribute and consume, and provide a scalable solution to a big health problem.In late 2018, Amarin finally cracked this fish oil code. They developed the first fish oil pill which clinically reduces the risk of a CV event. Called Vascepa, this new treatment is being heralded as a revolutionary breakthrough in cardiovascular therapy.The financial implications for Amarin are enormous. The CV treatment industry in the U.S. measures $500 billion. No other product has come close to matching Vascepa's robustness or clinical success. Thus for the foreseeable future, Amarin is a lone wolf in a $500 billion henhouse.This favorable set-up should lead to sustained huge growth for the foreseeable future. That huge growth started in 2019 (revenues rose 85% year-over-year). It will continue in 2020, supported by Vascepa winning Food & Drug Administration approval in late 2019, and being cleared for Canadian market expansion in 2020. Amarin Stock is DiscountedAgainst this backdrop of huge Vacepa growth, it's tough to see Amarin stock not rallying. That's especially true given that shares are discounted at current levels.Just look at the numbers. Sales rose 85% in 2019 to $425 million. They are guided to rise another 60% in 2020 to $675 million, and analysts are projecting for nearly 50% growth in the year after that to about $1 billion. The growth ramp won't be done there. Driven by more robust uptake of Vascepa in developed markets and expansion into emerging markets, many analysts believe that Vascepa will hit peak sales around $2 billion by 2024 or 2025.Gross margins here are around 80%. That's high -- high enough to allow for significant positive operating leverage over the next few years as expense growth rates moderate (and they will, given the lack of competition in this space).Net net, assuming $2 billion in peak Vasepa sales by 2025 and significant profit margin expansion, my modeling suggests that Amarin could net about $2.25 in earnings per share by then. Based on a pharmaceutical sector-average 15-times forward earnings multiple and a 10% annual discount rate, that implies a 2020 price target for the stock of $23, about 30% above where shares trade hands today. Bottom Line on AMRN StockThanks to Vascepa, Amarin looks like a big grower for the next few years. Shares aren't quite fully priced, and this discrepancy is your opportunity. Buy into present weakness, let overstated fears pass and let fundamental strength from Vascepa power shares materially higher over the next twelve months.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Vascepa Growth Will Power Amarin Stock Way Higher in 2020 appeared first on InvestorPlace.
Is there more upside in the cards for Amarin (NASDAQ:AMRN) stock? Shares soared late last year on news of the company's flagship Vascepa treatment receiving an expanded label. But after climbing from around the $15 price level to as high as $26.12/share, interest cooled.Source: Pavel Kapysh / Shutterstock.com When I last wrote about Amarin stock in mid-January, shares traded just under $20/share. Since then, the stock has tread water with shares closing at $18.18 on Feb. 12.One can argue that Vascepa's potential is already priced into shares. But, with similar treatments from competitors facing headwinds, Amarin stock could move higher as analysts anticipate even greater potential sales. On the other hand, nothing's for certain in the biotech game.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Exciting Stocks to Buy for Aggressive Investors Things could turn on a dime, pushing Amarin shares back down to prior levels. Yet upside may outweigh risks for Amarin stock. Let's dive in and find out why. Amarin Stock Could Move Higher as Competitors FlounderIn my last Amarin stock article, I discussed how Vascepa's upside potential could be thwarted by competition. AstraZeneca's (NYSE:AZN) Epanova and Acasti Pharma's (NASDAQ:ACST) CaPre face headwinds. Both yielded disappointing Phase 3 results. AstraZeneca is now throwing in the towel on Epanova. Acasti is investigating why, as InvestorPlace's Josh Enomoto reported, CaPre was no more effective than a placebo.With these competitors floundering, things look brighter for Vascepa. In other words, there's good reason why Amarin stock could head higher. Yet in the past month, shares haven't budged due to the news. Some investors remain skeptical of Vascepa's prospects. What's driving this negative sentiment? Competitive risk from generics.Two major generic drug-makers, Dr. Reddy's (NYSE:RDY) and Hikma (OTCMKTS:HKMPF) have generics in their pipeline similar to Vascepa. As I wrote in my prior Amarin stock analysis, both generic makers challenged Vascepa's patent. The uncertainty of this litigation is largely what's keeping Amarin shares from heading higher.Jeffries' Michael Yee is confident in Amarin's chances of winning the case. Proceedings in the case have ended, with a written ruling due by March 31. The analyst believes, based on the evidence presented, the court will rule in Amarin's favor. Yee gives shares a "buy" rating with a $30 price target.With these new developments, it seems Vascepa has a clearer shot of becoming a blockbuster drug. However, buying Amarin stock today is no slam-dunk. Multi-billion dollar sales figures are years away. Based on Amarin's guidance, the company should generate between $650 million-$700 million in revenue this year. That's a big jump from 2019's $425 million in sales. But a far cry from Stifel's estimated $3 billion in peak annual sales. What's Amarin Worth to An Acquirer?Annual sales have a long way to go before hitting the estimated peaks. That's not to say Amarin stock isn't worth more than its current trading price. Despite selling for around 9.4 times estimated 2020 sales, I reiterate Amarin remains a takeover target.Amarin stock is no stranger to takeover talk. Major pharma names find it easier to "buy" new drugs instead of spending billions more on R&D. So far, Amarin has decided to "go it alone." But, I don't see Amarin's board saying no if the price is right.So, what's a fair takeover price for Amarin? Let's assume Vascepa does hit $3 billion in peak sales. Major pharma names like GlaxoSmithKline (NYSE:GSK) and Novartis (NYSE:NVS) have gross margins between 68% and 71%. That implies peak gross profits for Vascepa of around $2 billion.With fixed overhead costs, a major pharma name could add much of this gross profit to the EBITDA line. GSK and NVS have EBITDA margins around 30%, implying fixed costs around 35%-40% of sales. Let's estimate Vascepa's overhead costs are just 30% of sales. That means estimated EBITDA of around $1.14 billion.GSK stock has an EBITDA multiple of 10.3. Novartis has an EBITDA multiple of 15.4. Other names, like Sanofi (NASDAQ:SNY) and Pfizer (NYSE:PFE) have EBITDA multiples around 12. Let's say an acquirer paid $30/share for Amarin stock. Subtracting around $600 million in net cash, that means around a $10.2 billion purchase price for Amarin. In other words, an EBITDA multiple of around nine.Even at a 65% premium to the current Amarin stock price, the company could be an accretive acquisition. Keep in mind this is all back-of-the-envelope. It remains to be seen whether Vascepa lives up to expectations. Bottom Line: Upside Potential Remains, RisksRecent developments could mean more upside for Amarin stock. But keep risks in mind. Amarin next releases quarterly results later this month. If earnings and/or guidance falls short of expectations, shares could move to prior price levels (or lower).Also, the courts could rule against Amarin's favor in the patent suit. Yet, with material upside potential, Amarin stock could be worth the risk.Thomas Niel, contributor to InvestorPlace, has been writing single-stock analysis for web-based publications since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Risks Remain, but Amarin Stock Is a Buy at Today's Prices appeared first on InvestorPlace.
The magic seems to have abandoned Amarin Corporation (AMRN), as the stock is down 15% since the start of 2020. The reason? The drug maker is bearing the brunt of investor concerns about competitors closing in on its key drug, Vascepa.Amarin's trial against generic competition from Dr. Reddy’s Laboratories and Hikma Pharmaceuticals concluded on 31.1. The company has asserted 15 claims from six patents against ANDAs filed by Hikma, Dr. Reddy’s and Teva (Teva and Amarin have already settled).The patents all relate to Vascepa, an FDA approved capsule used alongside a healthy diet to help lower fats (triglycerides) in the blood. The active ingredient in Vascepa is highly purified omega-3 fatty acid called ethyl-eicosatetraenoic acid (“ethyl-EPA” or “EPA”). Following various application rejections for patents of Amarin’s formulation of EPA that lowered TGs without also increasing “bad” cholesterol (LDL-C), the company was awarded the patents when, surprisingly, the results showed its dosage regime for pure EPA does not increase of LDL-C levels and it reduces apolipoprotein B (“Apo-B”) levels.The defendants dispute the claims on account of non-infringement and invalidity. A ruling is expected to be made by March 31, with overall sentiment on the Street indicating Amarin stands to walk away victorious.So, good news, no? Not according to Oppenheimer’s Leland Gershall. The 5-star analyst has held a bearish view on Amarin for a while now, and concludes that even in the very likely case of an Amarin win, there is still plenty of downside to come. Gershall argues that although shares could rally on successful litigation, he expects any strength to be short-lived if a M&A fails to materialize and investors focus increasingly on valuation.If that wasn’t negative enough, should the unlikely outcome of a decision against AMRN materialize, Gershall cautions on significant downside potential driven by “elimination of any M&A exit expectations in addition to early loss of Vascepa exclusivity."Gershall added, “With label expansion of sole omega-3 product Vascepa granted, consensus expectations are: 1) sales will inflect and grow to $2B+ by 2023-24; and 2) the company will be earnings positive starting in 2020. In contrast, we forecast sales growth to underwhelm and heavy selling costs to impede profitability, making both scenarios unlikely.”To this end, the 5-star analyst reiterated an Underperform rating and $13 price target on Amarin stock. The implication? Downside of nearly 30%. (To watch Gershall’s track record, click here)Countering the bearish sentiment is Jefferies’ Michael Yee. The 4-star analyst argues the stock could rise 10%-20% on a positive ruling. Following the end of the proceedings, Yee is confident Amarin is likely to prevail, and, therefore, remove “the chief overhang on the stock."Accordingly, Yee keeps his Buy rating intact, along with his $30 price target. (To watch Yee’s track record, click here)All in all, based on the word of the Street, Gershall seems to be the sole bear running loose here. It appears consensus sentiment matches well with Yee's eager eyes, with TipRanks analytics showing AMRN as a Buy. Based on 11 analysts tracked in the last 3 months, 6 rate the stock a Buy vs. 4 Holds and 1 Sell. The 12-month average price target stands tall at $29.78, marking over 60% upside from where the stock is currently trading. (See Amarin stock analysis on TipRanks)
Amarin Corporation plc (AMRN), announced today that BioNJ awarded Amarin with an Innovator Award in recognition of the approval of a new indication for VASCEPA® (icosapent ethyl) by the U.S. Food and Drug Administration (FDA) in December 2019. This approval positions VASCEPA as the first and only drug approved to reduce cardiovascular events in millions of select high-risk patients. “Amarin is proud to be part of BioNJ’s business community,” stated Steven Ketchum, PhD, Amarin’s president of R&D and chief scientific officer, who accepted the award on Amarin’s behalf.
Buyers will need patience and tolerance for risk as AMRN is likely to continue to trade sideways and could decline, according to the charts and indicators.
When searching for big rewards, look no further than biotech stocks.Just be prepared for big risk, too.Biotechs offer gobs of price potential. That's because unlike many companies that can slowly but steadily build up their businesses over time, the survival of biotechnology companies (especially early on) hinges on just a few trials of their developing treatments. Eventual approval of the drug means life-sustaining revenues for the company, so positive trial news can send shares skyrocketing. Setbacks, however, can spark an exodus.While it's impossible for regular investors to gauge what's going on in testing labs, you can give yourself a small leg up by paying attention to the analysts who cover the biotechnology industry. If you find a stock that's mostly surrounded by bulls, that might be a signal that something rewarding is around the bend.Here are five biotech stocks that have a "Strong Buy" consensus analyst rating and have potential catalysts right around the corner. We've used TipRanks' Smart Score system to identify this health-care short list. Also remember that biotechnology stocks come with a considerable amount of risk, and that sharp drops are not uncommon. Consider using only a small allocation from the portion of your portfolio dedicated to aggressive investments. SEE ALSO: 10 High-Quality, High-Growth Stocks to Buy
TORONTO , Jan. 28, 2020 /CNW/ - HLS Therapeutics Inc. ("HLS" or the "Company") (HLS.TO), a specialty pharmaceutical company focusing on central nervous system and cardiovascular markets, is pleased to update investors that Vascepa® (icosapent ethyl, or "IPE") will become available to Canadians on or about February 18, 2020 . At launch, Vascepa will be supported by the Company's national Cardiovascular salesforce, initially sized at 22 representatives, in addition to eight other field-based roles.
When investment bank Oppenheimer talks, investors listen -- or they should.One of the 10 top performing research firms tracked by TipRanks, 61% of Oppenheimer's stock picks have "worked" historically, producing positive returns for investors. In fact, on average, these picks have generated positive returns approaching 12%, and well ahead of the stock market's long term 10% average returns.And spread across a field of nearly 11,000 stock picks over more than a decade, that's no fluke.So when Oppenheimer announced on Wednesday that it's taken a good hard look at the healthcare industry, and come up with two stocks it's confident it can recommend buying -- and one it's pretty sure should be sold -- this is advice investors should give careful consideration.Let's find out what Oppenheimer has to say, beginning with:Regeneron Pharmaceuticals (REGN)Regeneron is one of a strange breed in biotech -- a company that actually makes money. 32 years in business, Tarrytown, NY-based Regeneron develops medicines to treat a wide array of illnesses, everything from age-related macular degeneration and diabetic retinopathy (Eylea) to atopic dermatitis (Dupixent) to atherosclerotic cardiovascular disease (Praluent) and locally advanced cutaneous squamous cell carcinoma (Libtayo).Oppenheimer analyst Hartaj Singh makes the case that Regeneron -- already doing $7.6 billion in annual sales and earning in excess of $2.1 billion annually -- is preparing to advance to the "next level of commercial and R&D growth" as competition to Eylea abates and the company intensifies its focus on growing Dupixent sales -- a $10 billion potential market.At the same time, Singh is impressed with Regeneron's "burgeoning internally generated pipeline" in 2020, which the analyst calls "best-in-class," as well as with management's "renewed focus on cost control" and planned $1 billion share buyback. Combined, these two moves promise to increase profits -- then divide them up among fewer shares outstanding, accelerating growth in earnings per share.As a result, Singh rates Regeneron stock "outperform" with a $450 price target, promising better than 25% upside from current prices. (To watch Singh's track record, click here)However, Wall Street isn’t completely sold on Regeneron. TipRanks analysis of 11 analysts shows a consensus Moderate Buy rating, with 4 analysts recommending Buy, while 7 recommending Hold. The average 12-month price target on the stock is $396.33, representing about 10% increase. (See Regeneron stock analysis on TipRanks)Novavax (NVAX)Oppenheimer's second stock pick takes us back to more familiar territory: biotech stocks that aren't earning money (at least not yet). Analyst Kevin DeGeeter's pick of vaccine specialist Novavax is clearly headlines-driven, and specifically, timed to align with recent news that the coronavirus outbreak that began in Chinese provincial capital Wuhan, has now arrived in America, with the first reported U.S. infection reported in Seattle Wednesday.As DeGeeter explains, the "outbreak of potent new strain of coronavirus infections" will remind investors "of the power of NVAX's flexible vaccine development infrastructure." And yet, it's not the primary reason DeGeeter likes Novavax in 2020. This is because DeGeeter expects it will take Novavax a good six to nine months to develop a vaccine effective against the new Chinese illness -- by which time 2020 will be basically over.Rather, this analyst views the "upcoming Phase III readout in March from NanoFlu recombinant hemagglutinin (HA) protein nanoparticle for protection against seasonal influenza as the primary value driver" for Novavax stock. Strong Phase II clinical trial results have DeGeeter thinking that Phase III results will be likewise positive, and perhaps enough so to convince the U.S. Food and Drug Administration to approve NanoFlu for sale as early as 2021. Once that happens, DeGeeter sees a strong chance that Novavax will sell itself to a high bidder.For this reason, DeGeeter is positing a rise in share price from $7.20 currently, to $13 a share by early 2021. Granted, an 80% return in 12 months' time may sound optimistic, but it could actually be conservative. (To watch DeGeeter's track record, click here)On Wall Street, the average target price among analysts tracking Novavax stock is $17.38 per share -- 34% more than what Oppenheimer is promising. (See Novavax stock analysis on TipRanks)Amarin Corp (AMRN)As much as Oppenheimer's analysts like Regeneron and Novavax, they are quite bearish on Amarin, a seller of prescription-only omega-3 fatty acid capsules for treating high triglyceride levels in patients. Oppenheimer comes to its "underperform" recommendation on Amarin by an interesting route.To start with, analyst Leland Gershell notes that AstroZeneca's discontinuation of a clinical trial for a product (Epanova) that would compete with Amarin's triglycerides drug (Vascepa) is a positive for Amarin stock. Although other competing treatments exist (Acasti Pharma's CaPre for example, and Matinas BioPharma's MAT9001), the removal of Epanova from the mix implies greater market share for Vascepa -- and an increased, $13 price target for Amarin stock.That being said, Gershell warns that "AMRN's opportunity to exit through acquisition [is] diminishing," which is to say the chances of the company finding a buyer willing to acquire Amarin at a premium valuation don't look as good as they once did. For this reason, despite raising its price target on the stock, Oppenheimer's still ends up thinking that Amarin, at a share price of nearly $21 (i.e. still 60% above what it thinks the stock is worth), remains overpriced and unlikely to outperform the market from here on out.In short, despite improved prospects for its marquee drug, the fact that the prospects for the company fetching a premium buyout prices are worse means Amarin merits a sell rating.All in all, Wall Street almost evenly split between the bulls and those choosing to play it safe. Based on 10 analysts tracked in the last 3 months, 5 rate Amarin stock a Buy, 4 say Hold, while 1 issues a Sell. Notably, the 12-month average price target stands at $29.88, marking a nearly 44% in return potential for the stock. (See Novavax stock analysis on TipRanks)
Acasti Pharma (NASDAQ:ACST) is a classic example of the extreme volatility of small-cap biotech stocks. It was only in late December that the shares were fetching $2.87, up from $1 a year earlier. But now ACST stock is trading around 79 cents, with a market cap of about $70 million. To provide some context, in 2013 the shares were trading around $40.Source: Shutterstock Founded in 2002, Acasti specializes in developing prescription drugs that use omega-3 fatty acids derived from krill oil. Keep in mind that those acids have been shown to effectively reduce triglycerides, thereby helping to make people's hearts healthier.The problem is that the underlying science is extremely complex and challenging. That was certainly highlighted recently when Acasti received disappointing results from a Phase 3 clinical trial of its CaPre drug. The drug was supposed to treat patients who suffer from severe hypertriglyceridemia, in which triglyceride blood levels range from 500 mg/dL to 1500 mg/dL.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs for the trial, it did have some positive outcomes. For example, the drug produced a 30.5% median reduction in triglyceride levels over a 12-week term. The median triglyceride reduction of patients taking the drug in combination with a statin was 42.2%, versus a 31.5% median reduction for those taking a placebo and a statin.So what went wrong? According to Acasti's press release: "Both the placebo and CaPre study groups experienced significant reductions in triglycerides within the first four weeks from baseline, and even though the difference at 12 and 26 weeks was in favor of CaPre, due to the unexpectedly large placebo response, TRILOGY 1 did not reach statistical significance." * The Top 5 Dow Jones Stocks to Buy for 2020 Despite this setback, Acasti is not giving up. The company is analyzing the data to determine the reasons for the endpoint miss. The remaining top-line data from the trial will be released in the next couple of weeks, and the FDA is expected to issue more analysis about the secondary endpoints of the trial within the next couple months. Additional positive data could emerge, boosting ACST stock.But I think investors should be extremely cautious about ACST. Just look at AstraZeneca (NYSE:AZN), whose fish-derived heart drug Epanova also failed to meet its primary endpoint in a clinical trial. In fact, the company decided to stop developing the drug, resulting in a $100 million writeoff. The Bottom Line on ACST StockACST is all about CaPre. So if the drug is not progressing sufficiently, the company's prospects will certainly be ominous.It's also important to point out that Acasti's rival, Amarin (NASDAQ:AMRN), is continuing to make headway with its fish-oil drug, Vascepa. During the latest reported quarter, Vascepa's sales soared 103% year-over-year to $112.4 million. That will definitely make things tougher on ACST.Also, consider that Amarin recently received FDA approval for an expanded indication for Vascepa. The drug was shown to be effective for patients who have elevated triglyceride levels of ≥150 mg/dL. According to Dr. Deepak Bhatt, an executive director of the Interventional Cardiovascular Programs at Brigham and Women's Hospital Heart and Vascular Center, the treatment "represents one of the most important developments in the prevention and treatment of cardiovascular disease since statins…"Vascepa's annual sales could reach $4 billion within the next three or four years. In other words, for investors looking for a play on the cardiovascular market, Amarin looks like a pretty good option, while ACST stock looks like a name that they should avoid.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Does Acasti Stock Have a Future? appeared first on InvestorPlace.
Amarin (NASDAQ:AMRN) stock has been choppy for the past year, as the price has made multiple attempts to move above the $23-$24 range. However, this has been a stubborn line of resistance, considering the stock price is currently around $20.Source: Pavel Kapysh / Shutterstock.com Despite this, Amarin stock has still been a pretty good bet over the years. After all, the five-year average return is close to 80%.So, what now? Could there be an opportunity with Amarin stock? Well, I think so.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo see why, let's get a brief backgrounder on the company. Founded in 1993, Amarin is one of the leaders in leveraging lipid science and polyunsaturated fatty acids to create pharmaceuticals to improve heart health. The main drug is Vascepa, which has posted robust growth. In the latest quarter, revenues hit $112.4 million, up 103% on a year-over-year basis. This has been due to substantial increases in the number of subscribers and higher levels of prescriptions per prescriber. * 10 Cheap Stocks to Buy Under $10 However, the key for Amarin is that it recently gained FDA approval for wider applications for Vascepa. This decision, ironically enough, came on Friday the 13th last month -- but of course, this really should be a very lucky day. Vascepa's DevelopmentThe new indication and label expansion -- which is the result of a decade of research and development -- is for a therapy to reduce "the risk of myocardial infarction, stroke, coronary revascularization, and unstable angina requiring hospitalization in adult patients with elevated triglyceride (TG) levels (≥150 mg/dL) and established cardiovascular disease or diabetes mellitus and two or more additional risk factors for cardiovascular disease."Yes, this is kind of medical jargon. But when boiling things down, the new use for Vascepa is a game changer.According to Dr. Deepak Bhatt, an executive director of the Interventional Cardiovascular Programs at Brigham and Women's Hospital Heart and Vascular Center, the treatment "represents one of the most important developments in the prevention and treatment of cardiovascular disease since statins…"The market opportunity is enormous, as there -- on average -- one cardiovascular death occurring every 40 seconds in the U.S. Also, the financial costs of cardiovascular disease events are burdensome at about $500 billion a year -- the most costly in the U.S. The CompetitionThere are a myriad of companies trying to do what Amarin has done; that is, using lipid therapies for cardiovascular disease. But, the science has proven quite complex and challenging.Note that there have been some recent examples of Phase 3 trials that shown disappointing results, such as from AstraZeneca (NYSE:AZN) and Acasti Pharma (NASDAQ:ACST). In fact, since December, ACST has plunged from $2.87 to around $0.80 per share.In fact, Cantor Fitzgerald analyst Louise Chen recently wrote after these companies' failures that "AMRN has been the only company in its class with an outcomes study (REDUCE-IT) that has shown a statistically significant benefit in reducing [cardiovascular] disease. We think the news today underscores our view that AMRN is an interesting asset in a consolidating space." Bottom Line On Amarin StockLast week, Amarin issued revised guidance for 2019. Revenues are now expected to range from $410 million to $425 million, which is at or slightly above the upper end of the prior forecast. The company also noted that beyond 2020, Vascepa's total net revenue "will grow to reach multiple billions of dollars" because "the history of other therapies for chronic conditions suggests that growth builds over multiple years."Given this, the growth story should be robust for quite some time. This should also stir up mergers & acquisitions interest from the mega pharma companies like Pfizer (NYSE:PFE), Merck (NYSE:MRK) and even AZN.Let's face it, they need to fill their pipelines with blockbuster drugs -- and these companies certainly have the resources to pay a premium price for Amarin.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post Why Amarin Stock Is Poised for a Healthy 2020 appeared first on InvestorPlace.
AstraZeneca (AZN) to discontinue STRENGTH study on its fish-oil pill Epanova in mixed dyslipidaemia on recommendation of an independent Data Monitoring Committee
Amarin stock popped Monday after rivals AstraZeneca and Acasti Pharma reported disappointing outcomes for their Vascepa-rivaling high triglycerides treatments.
Shares of Amarin Corp. PLC rose 4.8% in active afternoon trading Monday, after makers of drugs that rival Amarin's Vascepa, which is used to lower the risk of cardiovascular events in patients with high triglyceride levels reported disappointing trial results. Trading volume in Amarin's stock was 13.6 million shares, well above the full-day average of about 9.9 million shares. Acasti Pharma Inc. said a phase 3 trial of CaPre failed to meets its primary endpoint, of reducing triglycerides by 20% compared with placebo. The median triglyceride reduction in patients taking CaPre was 30.5% while the median reduction of patients taking a placebo was 27.5%. Acasti's stock plummeted 64% on volume of 48 million shares. And AstraZeneca PLC shares fell 0.6% said it would discontinue the phase 3 trial of Epanova given its "low likelihood of demonstrating a benefit" to patients at increased risk of cardiovascular events, and that it would take a charge of up to $100 million as a result. Amarin's stock has run up 30.5% over the past three months, while the S&P 500 has gained 10.5%.
AstraZeneca and Acasti Pharma each disclosed disappointing results from cardiovascular drugs derived from fish or krill oil.
Amarin Corporation plc (AMRN) today announced the launch of True To Your Heart, an educational campaign to help people learn more about cardiovascular disease and how to better protect against persistent cardiovascular risk. On truetoyourheart.com, people can learn about the impact of and risk factors for cardiovascular disease, as well as ways to reduce cardiovascular risk, including lifestyle choices and medical therapies. Despite the use of current standard-of-care treatments, such as statin medications, and positive lifestyle choices, many patients with cardiovascular disease may still face persistent cardiovascular risk for life-threatening cardiovascular events such as heart attacks or stroke.
AMAG's (AMAG) CEO will step down from the post once a successor is named. The company also plans to divest its women's healthcare drugs -- Intrarosa and Vyleesi.
Biopharmaceutical company Amarin (NASDAQ:AMRN) released an update to its preliminary 2019 fiscal results several days ago. The company also provided additional guidance for 2020, based on the expected performance of its new cardiovascular drug, Vascepa. In both cases, there is good news for investors who own Amarin stock.Source: Pavel Kapysh / Shutterstock.com However, the launch of the new drug will require a hefty increase in operational expenses for 2020, and that has tempered market reaction somewhat. AMRN stock slid nearly 8% after the news was released, but has since begun to bounce back. Amarin Revises Preliminary 2019 Results, 2020 GuidanceThe FDA approval of Vascepa -- the new fish oil-based drug to treat cardiovascular disease -- is a game changer for Amarin. In the lead up to the approval, Peter Wilson, a professor of medicine at Emory University (and a member of the FDA advisory panel) noted:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The panel felt very strongly that this fish oil product [Vascepa], taken in addition to statins, reduced cardiovascular disease." That statement and the subsequent FDA approval of Vascepa last December meant that Amarin had to take a look at the books again. On January 7, the company issued revised preliminary results for 2019. It is now expecting to hit or "slightly exceed" 2019 revenue at the upper end of its previous guidance, of between $410 million and $425 million. That would represent a revenue increase of about 85% over 2018. * The Top 15 Stocks to Buy in 2020 It's worth noting that AMRN had originally been expecting 2019 revenue in the $350 million range, but revised that upward in July.In addition, the company issued guidance for 2020. With Vascepa sales ramping up in the U.S., Amarin is calling for revenue of between $650 million and $700 million. The big win for Amarin stock holders is the expectation that this is just the beginning. When Vascepa goes mainstream, AMRN anticipates that revenue for the drug will grow to "multiple billions of dollars."That doesn't quite make Amarin another Merck (NYSE:MRK), but revenue at that level would certainly elevate AMRN's ranking among global pharmaceutical companies. You Have to Spend Money to Make MoneyThe expectation that Vascepa will be raking in billions of dollars in sales seems like nothing but upside for the company and its investors. So, why did the Amarin stock price drop after the updated financial information was released? It appears that the expenditures required to ramp up Vascepa sales have spooked some. The company noted that it is doubling its U.S. sales force from 400 through most of 2019 to 800. The process of hiring, training and paying those additional employees is costly. In addition, Amarin says that because the sales of Vascepa will be tough to predict at first, it is doubling its expenditure on inventory this year compared to last year.Doing so will ensure it will have enough of the new drug on hand to meet demand, even if it surges beyond predicted levels. In addition, the company is upping its spend on promotional and marketing activities.Overall, Amarin estimates operating expenses in 2020 will increase by $200 million to $250 million over 2019. That number may have caused some concern among investors. The result? A drop in Amarin stock rather than the boost you might expect to see from those revised guidance numbers. Outlook for Amarin StockThe market for cardiovascular dugs is enormous, and growing. It's on pace to hit $63.96 billion by 2026 -- up from $47.29 billion in 2018 -- and doctors are looking for new and more effective drugs for treatment. That puts AMRN in a good position, with Vascepa now approved for use. Where is Amarin stock going to end up as a result of the Vascepa rollout? InvestorPlace contributor Chris Lau had a look and found target valuations for AMRN ranging from $29.56 to over $50.No matter how you measure it, at the current price of around $19, Amarin stock -- powered by Vascepa -- has significant upside for 2020.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post Amarin Stock Bouncing Back After Revised Results and 2020 Guidance appeared first on InvestorPlace.
There has been a great deal of discussion about how drug prices will change in coming years. The fact that this is an election year surely sticks in traders' minds. If you remember back to the 2016 election cycle, biotech shares went into a brutal downturn after Hillary Clinton castigated the pharma industry for its pricing practices. Shares of healthcare stocks eventually recovered as it became clear that the Trump Administration had bigger fish to fry than going after drug prices.But now the cycle has begun again. Several Democratic candidates are proposing dramatic changes to the American healthcare industry to try to curb runaway drug prices. It seems likely that if re-elected, President Trump would probably need to tackle the issue again as well, as the system left in place from the Affordable Care Act needs modifications. This is a problem for investors. It's hard to forecast future profits when it's not clear what the playing field will look like within a couple years. * 7 High-Yield Dividend Stocks Set for Growth As such, it's a good time to take stock of your personal exposure to the healthcare industry before the presidential election heats up and potential market-moving headlines start pouring in. To that end, in general, companies with diversified revenue streams will fare better, while ones relying on a few high-priced drugs face more risk. Here are the outlooks for seven leading biotech, pharma and healthcare stocks in light of the potential pressures on drug prices going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Healthcare Stocks to Watch: Amarin (AMRN)Source: Pavel Kapysh / Shutterstock.com Amarin (NASDAQ:AMRN) offers a great example of the questions around drug pricing going forward. It recently scored Food and Drug Administration approval to market its fish oil product, Vascepa, to a much wider range of adults with high triglycerides. That should be a huge win for Amarin, right? The stock initially popped to multi-year highs, but slumped back to prior levels quickly.This week, Amarin stock dropped even farther, and it's now down 25% from its recent highs. The latest catalyst is that leading health insurance firm UnitedHealth (NYSE:UNH) reportedly dropped Amarin's Vascepa from its preferred authorization list. UnitedHealth offers Lovaza, the fish oil product initially commercialized by GlaxoSmithKline (NYSE:GSK), instead. Lovaza also aims to improve heart condition outcomes by lowering triglycerides. Unlike Vascepa, however, Lovaza doesn't have such a wide body of clinical trials supporting its efficacy.Nonetheless, insurance companies like UnitedHealth might think that one fish oil product is similar to another, and may pick the cheaper one for its customers. It shows the difficulty pharma companies are having as more attention turns to price. With increased attention to drug prices from both the private sector and the government, companies that offer a slightly better version of an existing drug should be careful.Amarin is a great example of how FDA approval doesn't necessarily translate into strong demand or profits in the current economic environment. AMRN stock still has plenty of potential upside, particularly in a buyout scenario. But it isn't the slam dunk winner it might have been five or ten years ago. Novo Nordisk (NVO)Source: joreks / Shutterstock.com Unlike the previous example, Novo Nordisk (NYSE:NVO) has a safer route to profits in this regulatory environment. That is to produce drugs that are clearly best-in-class, and sell lots of them at affordable prices. Novo Nordisk does this by selling insulin and other diabetes treatments.Given the growing diabetes epidemic around the world, Novo Nordisk is riding a huge demographic tide. And it's significantly harder for health insurers to say no to Novo Nordisk with its vitally important medications. Novo stock has traded up recently; however, it's still at a reasonable 21x forward earnings given its historic near-double digit earnings-per-share growth rate. * 7 Low-Risk Mutual Funds to Buy Now On top of that, Novo Nordisk stock is still only trading at where it previously peaked back in 2015. While earnings and dividends have grown nicely over the past five years, the company's stock hasn't yet caught up to its recent growth. Once the stock breaks out over $60 and hits all-time highs, however, it should pick up more momentum. Johnson & Johnson (JNJ)Source: Alexander Tolstykh / Shutterstock.com One way to lower your political risk, as it comes to drug prices is to run a supremely diversified business. Johnson & Johnson (NYSE:JNJ) manages to do that by having three different operations within the parent corporation. These include consumer products, medical devices and pharmaceutical drugs.Consumer products generally don't fall under the FDA's purview and aren't hurt by pressure on drug prices. Insurance efforts to crack down healthcare pricing could hurt medical device margins, but it's a bit of a different animal than drugs.J&J still has drug pricing exposure to be certain, pharmaceuticals are its large division by a wide margin when it comes to profit. But the two other embedded lines of business lower risk; meanwhile, J&J's drug portfolio is one of the most broadly diversified ones out there. JNJ stock has traded up a bit recently, but it's still selling for just 16x forward earnings. Combine that with its unparalleled record of dividend growth, and J&J is a conservative way to get your dose of healthcare exposure. AbbVie (ABBV)Source: Piotr Swat / Shutterstock.com AbbVie (NASDAQ:ABBV) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:ABT). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, Abbott's stock has more than doubled, while AbbVie has had a more difficult road.This makes sense. AbbVie inherited a complicated situation. Its blockbuster drug, Humira, currently makes up two-thirds of its overall revenues. However, Humira is set to face generic competition shortly, with its profits likely to head off the patent cliff by 2023. It's unclear if AbbVie will be able to make up the revenue gap that it will soon face.It intends to do so via its upcoming mega-merger with Allergan (NYSE:AGN). Allergan is famous for Botox, and it has numerous other products in the aesthetics space, along with other drugs for things such as eye care and womens' health. AbbVie hopes that merging with Allergan will diversify its revenue stream enough to withstand the loss of Humira revenues. However, it is taking on a ton of debt to do this deal. And it's not clear that Allergan, which had a similar business model to the now infamous Valeant, will fare well in a world with more drug pricing pressure. * 10 2019 Winners That Will Be 2020 Losers A lot of folks own AbbVie for the generous 5.3% dividend yield. But it's far from certain whether the Allergan purchase will be enough to sustain the dividend at that elevated level. Particularly if drug pricing pressures increase, that dividend could be on the chopping block in coming years. I'm a seller of ABBV stock here. Gilead Sciences (GILD)Source: Casimiro PT / Shutterstock.com Gilead Sciences (NASDAQ:GILD) could fare better than most other biotech companies in a challenging drug pricing market. There are several reasons for that. For one, GILD stock has already been one of the biggest losers of the past few years within biotech, so expectations are already low.Second, Gilead has seen its profits fall because its Hepatitis C products actually cure patients, rather than merely treat symptoms. A Bloomberg article noted the unfortunate situation, saying that Wall Street Wants The Best Patents, Not The Best Drugs. The author concluded that Gilead had a "bad business model" because curing diseases "just doesn't pay." That is, unfortunately, a seemingly accurate assessment of the current healthcare system.With an increased focus on pricing and getting the most bang for the buck, however, companies like Gilead should be more attractive to insurers and other end payers. Folks are increasingly sick of pharma companies jacking up prices for drugs that are only fractionally better than the previous version. Gilead hasn't played the same milking their patents for the most bucks game, and instead brought revolutionary products to market. After years of sorry stock price performance, however, Gilead may finally get its chance to shine in 2020. Thermo-Fisher Scientific (TMO)Source: Shutterstock Thermo-Fisher Scientific (NYSE:TMO) has quietly become one of the largest healthcare companies in the U.S., with its market capitalization now exceeding $125 billion. It has also been one of the strongest performers in the Health Care Select Sector SPDR ETF (NYSEARCA:XLV). With minimal volatility along the way, Thermo-Fisher shares have nearly tripled since early 2016.Their secret is that they are the proverbial company selling shovels to the gold miners. That's to say that Thermo Fisher sells lab equipment, pharmaceutical components, diagnostic tools and the like. Companies that want to create new pharma drugs, along with many other healthcare applications, have to buy raw materials from Thermo Fisher. * 7 Best Vanguard ETFs for 2020 Lower drug prices might smack profits for biotech companies. But a firm like Thermo Fisher is insulated. Its components are a small portion of the overall price of healthcare products and services. Additionally, it has other customers, such as governments and academic institutions, that buy from it as well. As long as the world continues to spend more on healthcare research and diagnostics in the coming years, Thermo Fisher should be a safe bet to keep on rallying. The stock isn't dirt cheap at 24x forward earnings, but it's not a bad deal for a company that has much less regulatory/pricing risk than most biotech and pharma companies. Cardinal Health (CAH)Source: Shutterstock Finally, we have the drug distribution companies. While there are various firms in this category, let's use Cardinal Health (NYSE:CAH) as our representative stock, as Cardinal has been a popular dividend play and turnaround pick for 2020. And, to be sure, Cardinal has a great track record, including being a Dividend Aristocrat, which means that it has hiked its dividend more than 25 years in a row.I can't get on board with the bullish sentiment for this stock now, however. If you were looking for firms directly in the crosshairs of upcoming changes in drug prices, drug distributors would be right there. It's not clear what role, if any, these companies would even have in a Medicare For All world where the government controlled the supply chain.For the longest-time, the thesis on these companies has been that U.S. healthcare spending will inevitably rise as the population ages. That's been a good bet so far. But now U.S. spending per capita is far above levels seen in just about every other developed country. It seems healthcare and in particular drug prices are reaching a limit, and betting on middlemen like Cardinal to keep getting more profits over time might not be a wise move anymore. People have been buying the stock on expectations that the drug distributors will be able to handle their opoiod lawsuit obligations at a modest cost. That may be true, but even if it is, don't overlook the existential risk to this business model going forward. CAH stock is cheap for a good reason, it has the classic look of a value trap.At the time of this writing, Ian Bezek owned JNJ, NVO, and GILD stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount appeared first on InvestorPlace.
What's next for Amarin (NASDAQ:AMRN) stock? After the Food and Drug Administration (FDA) expanded the label for its flagship Vascepa drug, Amarin stock could rally tremendously in the coming years. Even before the FDA ruling, Vascepa's sales were surging fast. Analysts, on average, predict that Vascepa generated between $410 million and $425 million of sales in 2019. That's an 85% jump versus 2018!Sales of Vascepa are also set to climb this year, thanks to the expanded label. According to SVB Leerink's Ami Fadia, Vascepa could reach peak sales of $4 billion-plus a year. Source: Pavel Kapysh / Shutterstock.com But since December, the AMRN stock price has dipped from its 52-week high. The shares peaked at $26.12 on Dec. 16, but now trade under $20 per share. Why are investors cashing out, even though Vascepa is poised to become a blockbuster drug?InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome remain skeptical as to whether Vascepa will live up to the hype. As InvestorPlace columnist Josh Enomoto wrote in a Jan. 3 column,Vascepa is an "adjunctive treatment option." In other words, it's not a "cure all" for cardiovascular disease.Also, competition could impact Vascepa's sales, and in turn, Amarin stock. AstraZeneca (NYSE:AZN) has its own cardiovascular treatment in the pipeline, as does Acasti Pharma (NASDAQ:ACST). * The Top 15 Stocks to Buy in 2020 Upcoming litigation could also impact the AMRN stock price. Amarin is fighting patent challenges from several generic drug makers. With these factors in mind, let's dive in and see whether Amarin stock will rise or fall in 2020. Will Vascepa Make Amarin Stock a Takeover Target?After the label for Vascepa was expanded, big pharma may want to get their hands on this potential blockbuster. As I've previously discussed, Pfizer (NYSE:PFE) is shedding legacy businesses to chase growth opportunities. Acquisitions of smaller biopharma companies like Amarin are key to this strategy.For big pharma, M&A is cheaper than R&D. InvestorPlace contributor Dana Blakenhorn recently cited a FiercePharma article which listed a grab bag of potential AMRN acquirers. But according to the FiercePharma piece, Amarin isn't looking to "cash the check" i.e. sell itself. Instead, AMRN is going it alone, increasing its sales force via 800 new hires.That strategy makes the outlook of AMRN stock price more uncertain. But Amarin may not be such a hot takeover target. InvestorPlace columnist Vince Martin pointed out in December why AMRN may not be at the top of big pharma's shopping list.According to Martin, cardiovascular drugs are rarely blockbusters. Big pharma is more interested in acquiring companies with oncology and CAR-T treatments in the pipeline. That is where major pharma names are fishing at the moment.There are good reasons, however, why Amarin stock could become a takeover target. Conversely, there are good reasons why buyers may not pay a big premium to get their hands on Vascepa. So investors should not buy AMRN stock based on this factor alone. Patent Litigation Could Impact the AMRN Stock PriceVascepa may be having its day in the sun. But what if AstraZeneca or Acasti Pharma develops a better treatment, potentially leaving Vascepa in the dust? Also, Amarin is fighting off generic drug makers' attempts to market generic versions of Vascepa.Vascepa is under patent protection until 2030. But that hasn't stopped Dr. Reddy's (NYSE:RDY), Hikma Pharmaceuticals (OTCMKTS:HKMPF) and Teva (NYSE:TEVA) from challenging its patents. Amarin previously settled with Teva, allowing the Israeli firm to sell a generic version of Vascepa in 2029.But Dr. Reddy's and Hikma want to duke it out in court. Amarin's lawsuit is slated to go to trial on Jan. 13. The fate of the company's patents could impact the AMRN stock price.What are the chances of Amarin prevailing? The prior Teva settlement may tilt things in Amarin's favor. But no matter the outcome, AMRN stock price could rise either way. Investors could already be pricing litigation risk into the shares, and eliminating that overhang will be positive for Amarin stock.A favorable ruling would be icing on the cake. By protecting Vascepa's patents until 2029 (when Teva will release its generic version), a favorable ruling would make Amarin's crown jewel a more valuable asset to a strategic acquirer. The Bottom Line: All Bets Are Off For Amarin Stock in 2020After its big moves in 2019, Amarin stock may already be fairly priced. But if the company's sales climb meaningfully, AMRN stock price could go higher. While the company is willing to "go it alone," a strategic acquirer could offer a hefty premium to add this drug to its pipeline.But Amarin stock is not a slam dunk going forward. Competing drugs could leave Vascepa in the dust. If Dr. Reddy's and Hikma Pharmaceuticals prevail in court, generic versions of Vascepa could hit shelves sooner than anticipated.With these uncertainties in mind, tread carefully with Amarin stock. Consider it a buy if the shares dip further, but don't chase this potential takeover target.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post All Bets Are Off for Amarin Stock appeared first on InvestorPlace.