Jefferies Revised Amarin (AMRN) Model on Commercialization Update, Trims PT But Keeps 'Buy'

January 8, 2013 12:16 PM EST
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Price: $2.95 -2.32%

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    8 Buy, 11 Hold, 0 Sell

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    Up: 35 | Down: 31 | New: 9
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Jefferies analyst Thomas Wei provided an update on Amarin Corporation (NASDAQ: AMRN) Tuesday following yesterday's JPMorgan conference presentation. The analyst reiterated a Buy rating but trimmed his price target from $28 to $26.

The company announced that the 275-person internal salesforce to launch Vascepa is fully hired and plans to launch Vascepa around the end of January. The company also highlighted an early awareness program to supply high prescribers with free drug, with the goal to get patients on Vascepa immediately, the analyst notes.

Wei also noted that while commercialization plans to launch Vascepa in the ANCHOR indication have not been finalized, AMRN is evaluating several strategic options and does not expect to launch in this indication on its own. The company remains on track with the enrollment of REDUCE-IT outcomes trial, which is a requirement to file the sNDA for Vascepa in the ANCHOR indication. The company expects to file the sNDA by the end of February.

On reimbursement, the company highlighted the progress made in reimbursement coverage for Vascepa, although the company expects Vascepa to be initially covered at Tier 3 primarily without restrictions, Wei notes. The company plans to offer copay assistance through rebates or coupons to be competitive with lower copay competitor drugs.

Jefferies revised his model on Amarin to reflect higher initial launch costs in 2013, including a higher initial cost of goods sold, higher R&D expenses to reflect the full burden of the REDUCE-IT outcomes study, and higher SG&A expenses including a full year of marketing expenses for MARINE. The firm still includes a pharma partnership in late 2013, but have modestly moderated our royalty assumptions to reflect the slight reduction in gross margins related to contractual obligations for Vascepa inventory purchasing.

For an analyst ratings summary and ratings history on Amarin Corporation click here. For more ratings news on Amarin Corporation click here.

Shares of Amarin Corporation closed at $8.70 yesterday.

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