Amarin (AMRN) Sell Off on Vascepa Label Overdone; Aug. 17th NCE Decision Will Provide Upside - Analyst
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Price: $0.88 +1.15%
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
6 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Amarin (Nasdaq: AMRN) shares are slightly in positive territory amid positive comments for its Vascepa drug.
Last week, Amarin received FDA approval for Vascepa "as an adjunct to diet to reduce triglyceride (TG) levels in adult patients with severe (TG greater than or equal to 500mg/dL) hypertriglyceridemia (very high triglycerides)." Since then, shares have fallen over 23 percent to close at $11.71 on Tuesday.
MKM Partners believes the sell off is overdone. MKM's Biotechnology & Pharmaceuticals Analyst Jon LeCroy viewed the label as a "mild negative," but agreed that the recent dump is overdone. Why?
Amarin's Vascepa is slated to receive new chemical entity (NCE) status from the FDA on August 17th. LeCroy thinks that many large pharma's would be interested in acquiring the triglyceride-lowering therapy. That said, MKM thinks Amarin stock would move quickly to the firm's 12-month price target of $21.50.
Into the decision, MKM is recommending options traders pick up September 13/18 call spreads, partially financing the deal via sales of September 8 puts.
Shares of Amaring have been in positive and negative territory all session Wednesday. Implied volatility is slightly higher on the session, but is 164 percent above the trailing annual average.
Last week, Amarin received FDA approval for Vascepa "as an adjunct to diet to reduce triglyceride (TG) levels in adult patients with severe (TG greater than or equal to 500mg/dL) hypertriglyceridemia (very high triglycerides)." Since then, shares have fallen over 23 percent to close at $11.71 on Tuesday.
MKM Partners believes the sell off is overdone. MKM's Biotechnology & Pharmaceuticals Analyst Jon LeCroy viewed the label as a "mild negative," but agreed that the recent dump is overdone. Why?
Amarin's Vascepa is slated to receive new chemical entity (NCE) status from the FDA on August 17th. LeCroy thinks that many large pharma's would be interested in acquiring the triglyceride-lowering therapy. That said, MKM thinks Amarin stock would move quickly to the firm's 12-month price target of $21.50.
Into the decision, MKM is recommending options traders pick up September 13/18 call spreads, partially financing the deal via sales of September 8 puts.
Shares of Amaring have been in positive and negative territory all session Wednesday. Implied volatility is slightly higher on the session, but is 164 percent above the trailing annual average.
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