Amarin (AMRN) NCE Status Could Happen by September 14 and Takeover Could Follow - MKM
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Price: $0.85 -3.41%
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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MKM Partners reiterated their Buy rating and $21.50 price target on Amarin Corporation (NASDAQ: AMRN) following Friday's update from the company on NCE status for Vascepa, which wasn't included in the July Orange Book supplement.
MKM believes the delay is positive for Amarin for several reasons: "First, if the decision were cut and dry against Vascepa deserving NCE, the FDA would have simply not granted NCE status. Second, on its quarterly call, the company stated that the decision could come after August 17, and that the company expected to be granted NCE. This implies the company has been in discussions with the agency, knew of the delay, yet still felt it would be granted NCE. Third, the FDA may be waiting for additional granted patents in order to support a decision to grant NCE."
MKM said it is possible that the FDA will make its decision in favor of NCE once the additional patents that have received Notices of Allowance are granted. "If additional patents are granted prior to the next Orange Book update (expected September 14), then it is possible Vascepa will be granted NCE status in that update," analyst Jon LeCroy, M.D. states.
Once NCE is granted, MKM believes an acquisition of the company could follow in the second half. "We think that the majority of large pharmaceutical companies would be interested in acquiring a triglyceride-lowering therapy, and companies with existing cardiovascular and/or diabetes franchises would be at the top of our list," the analyst comments. Pfizer (NYSE: PFE), AstraZeneca (NYSE: AZN), Bristol (NYSE: BMY), Sanofi (NYSE: SNY), Merck (NYSE: MRK), Lilly (NYSE: LLY), Novo (NYSE: NVO), Roche and Takeda, make sense as potential suitors LeCroy states, although Astra makes the most sense.
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.
MKM believes the delay is positive for Amarin for several reasons: "First, if the decision were cut and dry against Vascepa deserving NCE, the FDA would have simply not granted NCE status. Second, on its quarterly call, the company stated that the decision could come after August 17, and that the company expected to be granted NCE. This implies the company has been in discussions with the agency, knew of the delay, yet still felt it would be granted NCE. Third, the FDA may be waiting for additional granted patents in order to support a decision to grant NCE."
MKM said it is possible that the FDA will make its decision in favor of NCE once the additional patents that have received Notices of Allowance are granted. "If additional patents are granted prior to the next Orange Book update (expected September 14), then it is possible Vascepa will be granted NCE status in that update," analyst Jon LeCroy, M.D. states.
Once NCE is granted, MKM believes an acquisition of the company could follow in the second half. "We think that the majority of large pharmaceutical companies would be interested in acquiring a triglyceride-lowering therapy, and companies with existing cardiovascular and/or diabetes franchises would be at the top of our list," the analyst comments. Pfizer (NYSE: PFE), AstraZeneca (NYSE: AZN), Bristol (NYSE: BMY), Sanofi (NYSE: SNY), Merck (NYSE: MRK), Lilly (NYSE: LLY), Novo (NYSE: NVO), Roche and Takeda, make sense as potential suitors LeCroy states, although Astra makes the most sense.
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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