Boston, MA 10/18/2013 (wallstreetpr) – Amarin Corporation plc (ADR) (NASDAQ:AMRN) is a biopharmaceutical company engaged in developing treatment of cardiovascular disease. The company has developed a product, an ultra-pure omega-3 fatty acid, for treating patients with high triglyceride levels. The company had received approval from the U.S. Food and Drug Administration (USFDA) for use as a diet adjunct for reducing triglyceride in adults suffering from severe hypertriglyceridemia. The company had reported revenues of $5.5 million from sales of this product. It was conducting trials which, if successful, would have granted approval for other indications. Such an approval would have increased it market potential substantially.
The results do not impress the USFDA. They raised questions about whether lowering triglyceride levels reduced the risk of cardiovascular disease. Amarin is carrying out a long-term clinical trial to assess this relationship which will give results only after three years. The FDA panel voted 9 to 2 against granting approval to the drug for additional indications. The company had raised $121.1 million through the issuance of 21.7 million American Depository Shares to fund the clinical trials and launch the drug for the current indication. The company does not have any other product in the pipeline, and the market for Vascepa sustaining the company in the long run is questionable. Investors are getting worried about the long term impact on the ruling. The ruling will also have an impact on other competitors as it is not questioning the efficacy of the drug in lowering triglyceride levels. It doubts whether lowering triglyceride levels will have an impact of lowering cardiovascular diseases.
The investors are dumping the stock and, it has entered the ‘oversold’ territory. The stocks touched a new 52 week low of $1.85 before closing at $2.01, a downside of more than 61%.
