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NCE Decision Again Upon Amarin (AMRN); Could Be a 5-Bagger in a Takeover

October 5, 2012 1:41 PM EDT Send to a Friend
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Price: $1.93 --0%

Rating Summary:
    4 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

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    Up: 0 | Down: 0 | New: 0
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With shares of Amarin Corporation (NASDAQ: AMRN) down over 20 percent in the past few months investors may be thinking the market has missed the fact that the FDA approved the company's Vascepa for very high triglycerides in July. But the truth is - it didn't. The ever-allusive NCE status has been the culprit for the recent weakness. It could make or break the value of the company for shareholders.

For the past two months the FDA has delayed including Vascepa in the monthly Orange Book, saying it has not yet made a determination with respect to regulatory exclusivity. Now the next Orange Book is upon us - expected around October 12.

NCE status has major implications. Amarin is clearly an attractive takeover target for major pharmaceutical companies like AstraZeneca, Bristol, Sanofi, Merck, Lilly and Roche. However, potential acquirers are on the sidelines until an NCE decision is made.

Today, Canaccord Genuity analyst Ritu Baral commented on the takeover potential. Baral sees the enterprise value of Amarin's Vascepa worth as much as $78.26 per share if the drug has patent protection through 2030. Because of Irish takeover laws, Baral said potential suitors are "likely to be very secretive and circumspect." The firm has a Buy rating and price target of $26 on AMRN.

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 are up 2.2 percent Friday to $12.42.




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Comments

Editor
Bond Wells on 2012-10-05 13:50:37
Mark as Spam | Reply to this comment

Does anyone edit these things before posting them? Come on. Attention to detail would go a long way towards your credibility.


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