Amarin (AMRN) Stock: Should You Be Concerned About Declines?

Amarin Corporation plc (ADR) (NASDAQ: AMRN)

Amarin Corporation is having a rough time in the market today. However, following the gains we saw on the stock, investors are wondering whether or not they should be concerned. Today, we’ll talk about the gains we saw yesterday, why we’re seeing declines today, and what we can expect to see from AMRN moving forward. So, let’s get right to it…

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Why AMRN Saw Gains Yesterday

Yesterday was an incredibly big day for AMRN as the stock climbed dramatically. The reason for the gains was simple. The company announced that it had reached the target enrollment numbers for its REDUCE-IT cardiovascular outcome trial with regard to Vascepa, also known as icosapent ethyl. However, that wasn’t the only good news. The company also announced that the onset of about 60% of the target aggregate number of primary cardiovascular events within the REDUCE-IT study triggered preparations for a pre-specified interim efficacy and safety analysis by the independent Data Monitoring Committee. This is expected to be conducted in about 6 months. In a statement, Steve Ketchum, Ph.D., Scientific Officer and President of Research and Development at AMRN, had the following to offer:

We are pleased to announce that we have reached the target enrollment in REDUCE-IT, the first multinational cardiovascular outcomes study prospectively designed to investigate whether there is a meaningful reduction in the occurance of major cardiovascular events when EPA is added to statin therapy in high-risk patients with elevated triglycerides… Vascepa demonstrated a broad spectrum of favorable effects on lipid, lipoprotein, and inflammatory biomarkers compared to placebo in Phase 3 studies focused on patients with high triglyceride levels after statin therapy and on patients with very high triglyceride levels. Through long-term study of patients treated with Vascepa in REDUCE-IT, we aim to provide a robust dataset to determine whether the effects of highly-pure EPA omega-3 prescription drug therapy will lower the risk of cardiovascular events in the high-risk patient population studied.”

Why We’re Seeing Declines Today

While yesterday was an overwhelmingly positive day for Amarin, today isn’t so great. In fact, currently (9:30), the stock is trading at $1.51 per share after a loss of $0.02 per share or 1.31% thus far. So, what’s causing the declines? Well, there hasn’t been any fundamental data suggesting that declines were coming. With that said, what we’re seeing today is nothing more than normal market movement. You see, the market tends to move through a series of overreactions. So, after strong upward growth, we can expect to see slight declines, correcting the price and bringing it to a more sustainable rate before more gains can continue.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from AMRN. The reality is that the company is making incredible moves with Vascepa, and considering the movement we’re seeing, I’m expecting this to lead to further profits. With a strong product, strong management, and a clear plan for growth moving forward, I don’t see any reason to expect anything but gains out of AMRN moving forward.

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What Do You Think?

Where do you think AMRN is headed moving forward and why? Let us know your opinion in the comments below!

[Image Courtesy of Pixabay]

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