UPDATE: Jefferies Maintains a 'Buy' on Amarin Corporation (AMRN); Orange Book Update

August 20, 2012 7:13 AM EDT
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Price: $2.89 -0.34%

Rating Summary:
    8 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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(Updated - August 20, 2012 7:38 AM EDT)

Jefferies maintains a 'Buy' on Amarin Corporation (NASDAQ: AMRN) price target of $28.00.

Analyst, Thomas Wei, said, "The FDA issued the July Orange Book update including Vascepa, indicating the FDA has yet to make a determination on NCE status. We believe the FDA may need additional time to consider AMRN’s unique arguments, which we view positively. While many investors remain focused on the NCE decision, we primarily value Vascepa IP on patents and believe Vascepa would be attractive to pharma."

Commenting on why the FDA delay could be a minor positive for NCE prospects, Wei states:

"We believe this news should not come as a surprise to investors given AMRN's recent suggestion of a delay. A bear argument on NCE is that AMRN may have been aware that the FDA was leaning negatively on the decision and requested the recent June 22 FDA meeting to change the agency’s mind. However, AMRN recently indicated to us that this is not the case and that the June meeting was requested to present AMRN's arguments to more senior officials, prior to the usual review by mid-level officials around the time of approval. Therefore, we see this delay in the exclusivity determination as somewhat encouraging that the FDA may be seriously considering AMRN's recent arguments and the special circumstances in favor of NCE status (including a more sophisticated legal argument, three SPAs being satisfied, and a CV outcomes study requirement) rather than summarily dismissing them as we believe is more likely in an immediate judgment. At the same time, we see a minor delay to the exclusivity determination as having no material impact on our valuation thesis, which is largely driven by patent protection well in to the 2020s with upside from 2030 patents."

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 $11.88 yesterday.

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