Aegis Capital Comments on Amarin (AMRN) Following Q2 Results, Commercialization Update

Aegis Capital affirms its Buy rating and $2 price target on Amarin (Nasdaq: AMRN) following Q2 results.

Analyst Ram Selvaraju commented, [Amarin] recorded $12.6mm in Vascepa sales, below our estimate of $14mm. R&D expenses were $11.7mm, slightly above our forecast of $10mm, and SG&A expenses were $21.1mm, also above our projection of $18mm. While the firm reported earnings per share of $0.08 vs. our expectation of a net loss per share of $0.11, we note that this was primarily due to a finance income gain of $38mm in the quarter. In the wake of these results, we have reduced our revenue expectations for Vascepa from $66mm to $60.6mm, in anticipation of further sales growth in the second half of 2014 driven by the co-promotion arrangement with Kowa.

The Kowa co-promotion arrangement is structured to more than double the sales detail levels from that which Amarin's sales team has achieved on its own, including details to over twice the number of physicians targeted by Amarin's sales representatives. Normalized prescriptions (estimated) for the quarter ended June 30, 2014, based on data from Symphony Health Solutions and IMS Health, totaled 110,000 and 93,000, respectively, and grew roughly 18% and 19%, respectively, vs. the first quarter data. Such growth was primarily generated from higher-decilephysicians targeted by Amarin's sales representatives.

The firm reported in its earnings call that it had surpassed 7,000 patients enrolled in the REDUCE-IT cardiovascular outcomes trial. However, because this study will still take over 30 months to report data, we remain on the sidelines. We continue to wait watchfully on this name, in the belief that it could yet prove successful long-term. Thus far, though, we have not seen the significant acceleration in Vascepa sales that would lead us to become more bullish.

For an analyst ratings summary and ratings history on Amarin Corporation click here. For more ratings news on Amarin Corporation click here.

Amarin Corporation closed at $1.66 yesterday.

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