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Aegis Capital Keeps Amarin (AMRN) at 'Hold'; Cautious on Vascepa for Dyslipidemia Strategy

February 28, 2014 9:22 AM EST
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Price: $1.84 -0.54%

Rating Summary:
    7 Buy, 11 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 24 | New: 19
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Aegis Capital reaffirms its Hold rating and $2 price target on Amarin Coop plc (Nasdaq: AMRN) on Friday following Q4 results and update.

Analyst Ram Selvaraju commented, We believe that Amarin can achieve management's stated financial goals, even with a significantly reduced revenue base for Vascepa in hypertriglyceridemia only. However, we remain negative on the prospects for Amarin to convince the FDA that the drug should be approved near-term for mixed dyslipidemia, and consider the use of legal action to be an ill-advised strategy. The firm has stated its intent to appeal the decision by the FDA's Division of Metabolic and Endocrinology Products (DMEP) not to reinstate the Special Protocol Assessment (SPA) that Amarin originally had in place to the FDA Director of the Office of Drug Evaluation II (ODE-II), the next level under FDA dispute resolution guidance. A decision by the FDA is expected in the third or fourth quarter of this year.

Selvaraju is still positive on REDUCE-IT, but, given that results will still take over 3 years to materialize, he's on the sidelines for now. The REDUCE-IT study has thus far enrolled patients with relatively low triglycerides (roughly 230mg/dL) and therefore we note that there is a risk that it could produce inconclusive results.

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Shares of closed at $360.13 yesterday.

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