UPDATE: MKM Partners Downgrades Amarin Corporation (AMRN) to Neutral

January 16, 2014 8:02 AM EST
Get Alerts AMRN Hot Sheet
Price: $2.93 +1.74%

Rating Summary:
    8 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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(Updated - January 16, 2014 10:47 AM EST)

MKM Partners downgraded Amarin Corporation (NASDAQ: AMRN) from Buy to Neutral with a price target of $2.50 (unchanged). The change follows news late on Wednesday that the Division of Metabolism and Endocrinology Products (DMEP) within the U.S. Food and Drug Administration (FDA) notified the company today that a determination on Amarin's request for reconsideration of DMEP's October 2013 decision to rescind the ANCHOR clinical trial Special Protocol Assessment (SPA) agreement will be delayed.

Analyst Jon LeCroy said, "FDA previously notified the company that it planned to convey its decision to Amarin no later than January 15, 2014. The DMEP provided no definitive date for its planned response but Amarin does not expect the delay to be for a significant period of time. We would expect an ANCHOR sNDA decision to occur soon after the SPA appeal ruling. We expect that the FDA will not reinstate the SPA and that the ANCHOR indication will receive a Complete Response Letter (CRL)."

"With Amarin shares now trading near our $2.50 fair value estimate, we are downgrading the company to Neutral. We continue to expect the company to have a difficult time significantly growing Vascepa prescriptions in the face of a smaller sales force and new ACC/AHA lipid guidelines that essentially only recommend statins for lipid management. We also do not expect Amarin to secure a near-term partnership for the drug," he added.

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 $2.07 yesterday.

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