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JPMorgan on Underweight-rated Amarin Corporation (AMRN), 'we see a difficult path ahead for the stock'

June 6, 2022 12:12 PM EDT
Get Alerts AMRN Hot Sheet
Price: $1.09 -0.91%

Rating Summary:
    6 Buy, 12 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 4 | New: 31
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JPMorgan analyst Jessica Fye reiterated an Underweight rating and {REMOVEPT} price target on Amarin Corporation (NASDAQ: AMRN)

The analyst comments "This morning, AMRN simultaneously announced a reduction in the US commercial team to just ~10% of its pre-pandemic and pre-generic competition levels as well as the appointment of Tom Reilly as new CFO. Given the generic pressure in the US market and AMRN’s goal of managing the US Vascepa business for positive contribution margin, we believe the reduction in US sales infrastructure is warranted. We further view the appointment of Tom Reilly (who came from CARA) as the new CFO as a solid replacement for outgoing CFO Mike Kalb, who resigned to pursue other interests. Catching up with management, they emphasized that this move does not signal any giving up on the US; rather, it is about optimizing the cost structure to maximize contribution margin and taking action (not sitting back) in the face of uncertainty on US revenue. We anticipate mgmt could outline its latest strategic vision in the back half of this year once it has secured reimbursement from a big five European geography (we suspect perhaps the UK). Bigger picture, we continue to view AMRN as having an effective drug and a capable mgmt team, but between US sales declining from generic pressure and the pressures on growth in Europe, we see a difficult path ahead for the stock and expect it to underperform our coverage."

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 $1.68 yesterday.



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