Amarin Corporation plc (NASDAQ: AMRN) has been receiving quite a bit of attention among investors, and for good reason. The company has quite a bit coming up and is becoming one heck of a takeover target. I published a detailed look at the company on one of the new CNA Finance Brands, Alpha Stock News. However, for those of you who may have missed it, here’s why now may be the perfect time to get involved in AMRN stock:
Vascepa Is The Big Story
The big deal for Amarin is their flagship product known as Vascepa. The treatment has been approved by the FDA to reduce triglyceride (fat) levels in adults. Over the past few years, the comapny has seen a strong increase in sales of the drug. However, that’s not the big story here.
The big story here is the future of Vascepa. At the end of the day, the treatment will likely lead to two big catalysts ahead:
- First and foremost, AMRN is working to expand the label on Vascepa. If all goes well, the treatment will be indicated as a cardiovascular risk management drug, the only one of its kind to be approved in the United States. The label expansion goal came after the company announced positive results from the REDUCE-IT trial that demonstrated the drug’s ability to reduce risk of hear attack, stroke and cardiovascular related death. It is expected that the sNDA surrounding this indication will be submitted by the end of the first quarter.
- Moreover, the company recently announced that Canada Health has granted Vascepa priority review. This means that the review process will be more than 100 days shorter upon submission of the New Drug. AMRN said that it intends on this submission taking place by the end of the month.
Of course, both of these points could lead to several potential catalysts ahead.
The Takeover Argument
The truth of the matter is that as it sits right now, Amarin represents a strong takeover target. Vascepa is a great drug that has proven to reduce cardiovascular risk in a massive trial. While the label is currently related to triglycerides, there’s a strong chance that the coming sNDA to expand the label will be approved.
This, combined with the company’s efforts to bring Vascepa to patients in Canada makes the treatment a very strong value proposition. If a larger company were to act now, they would stand a lot to gain from an acquisition of AMRN.
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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 watching for news with regard to the United States label expansion, potential approval in Canada, and a potential takeover. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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