Amarin Corporation plc (NASDAQ: AMRN) has been the topic of a heated debate as of late, and it has hindered the stock’s growth. Nonetheless, yesterday, the stock started to recover and that recovery seems to be continuing today. If you think you’re late to the party, I’m here to assure you that you’re not. The truth of the matter is that there’s plenty more room for the stock to run, and in the long term, the potential is incredible. Today, we’ll talk about the debate, what we’re seeing from AMRN and what we’ll be watching for ahead.
The Debate That Has Hindered The Growth Of AMRN
As mentioned above, Amarin Corporation has been the subject of some debate. It all started over the weekend when the company announced the results of a long-term Phase 3 clinical study of Vascepa. The treatment was designed to reduce the risk of cardiovascular events in high risk patients, and the data was positive.
During the study, the company provided Vascepa to hundreds of patients, following them around for a median of 4.9 years. The data from the study proved to be positive. AMRN said that there was a more than 20% relative risk reduction in various cardiovascular ailments, including heart attack, stroke and several others.
The positive data ultimately sent the stock rocketing. That is, until Adma Feuerstein, noted biotechnology analyst weighed in. Unfortunately, Feuerstein had an issue with the placebo. In his comments, he said that the minerals used in the placebo skewed the data. Essentially, Feuerstein says that the minerals from the placebo would have increased risk, making the comparative benefit of Vascepa a bit less shiny.
Nonetheless, plenty of experts argue against this opinion. Most notably, the New England Journal of Medicine has publicly stated that the minerals used in the placebo could not be the cause of such a significant end result. As such, I believe that AMRN hit the nail on the head, and that as investors realize this, the stock will continue to rise.
Vascepa Has Some Serious Market Potential
Already approved for the reduction of triglycerides, Vascepa has tremendous market potential ahead should it be approved for the reduction of cardiovascular risk. After all, about one third of adults in the United States have high blood pressure, making them high-risk patients for cardiovascular events. So, the market that AMRN can tackle with Vascepa is absolutely massive. Should the treatment be approved, there’s massive potential for revenue generation here.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. While the news has been a debate, the underlying data Amarin Corporation released is incredible, and in time, I believe that investors will push the stock to a more reasonable value considering this data. Today, they are working to do just that. Currently (8:28), AMRN is trading at $17.10 per share after a gain of $0.98 per share or 6.08% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMRN. In particular, we’re interested in following the news surrounding Vascepa. Although the treatment is leading to a heated debate, we believe that the potential here is incredible. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!