Why is Amarin stock so low?
Unfortunately for Amarin, a federal court ruling opened Vascepa up to competition from generic versions in 2020. The stock is sliding today because first-quarter earnings results suggest the company's commercialization strategy isn't working.
Will Amarin stock go back up?
The 7 analysts offering 12-month price forecasts for Amarin Corporation PLC have a median target of 3.00, with a high estimate of 9.00 and a low estimate of 1.50. The median estimate represents a +66.67% increase from the last price of 1.80.
Is Amarin stock worth buying?
On average, Wall Street analysts predict that AMARIN's share price could reach $3.67 by May 6, 2023. The average AMARIN stock price prediction forecasts a potential upside of 224.51% from the current AMRN share price of $1.13.
What is AMRN price target?
Stock Price Target AMRNHigh$9.00Median$3.00Low$1.50Average$3.57Current Price$1.45
A brief history of Vascepa
What should investors do?
The patent trial in Nevada was regarding Amarin's drug, Vascepa, a pill containing modified fish oil that reduces triglycerides, or fat in your blood. Amarin's scientific discovery was that one component of fish oil, the omega-3 fatty acid EPA, is helpful and good.
A bearish analyst thinks the company's lead drug product is unlikely to live up to the hype
In the animated classic Alice in Wonderland, the White Rabbit said: "Don't just do something, stand there." That's wonderful counterintuitive advice. In a physical emergency, you might need to run and shout and wave your arms around; sometimes speed is essential. But when you're investing your money in a business, you should take your sweet time.
What happened
Maxx has been a contributor to Fool.com since 2013. He graduated from the State University of New York College of Environmental Science and Forestry (2012) with a Bachelor of Science in Bioprocess Engineering and from Carnegie Mellon University (2016) with a Master of Science in Materials Science & Engineering.
So what
Shares of Amarin ( NASDAQ:AMRN) fell as much as 16% today after investors digested a bearish report from Wall Street.
Now what
The analyst report by Gershell makes a few intriguing arguments and predictions. First, he pegged his price target for Amarin shares at $7 apiece, which implies a market valuation of about $2.4 billion. The stock was recently near $24 per share and the current market valuation is just under $7 billion.
The pharma stock collapsed on the threat of generic competition for a drug that launched in December 2019, but the move may have been a bit of an overreaction
Has Amarin earned its $7 billion market valuation? Absolutely not. But there are good reasons to remain optimistic about the long-term potential of Vascepa.
What happened
Maxx has been a contributor to Fool.com since 2013. He graduated from the State University of New York College of Environmental Science and Forestry (2012) with a Bachelor of Science in Bioprocess Engineering and from Carnegie Mellon University (2016) with a Master of Science in Materials Science & Engineering.
So what
Shares of Amarin ( NASDAQ:AMRN) tumbled over 67% in the first six months of the year, according to data provided by S&P Global Market Intelligence.
Now what
In December 2019, the U.S. Food and Drug Administration (FDA) approved claims that Vascepa can reduce cardiovascular risks in specific patient populations.
A Brief History of Vascepa
What Will Happen Next?
- One thing isobvious -- the company is appealing the decision. So far, the FDA has not approved an abbreviated new drug application (ANDA), which is what a generic company would need before marketing concentrated EPA to the public. That's probably why the stocks of Hikma Pharmaceuticals (HKMP.Y2.05%) (HKMP.F-1.61%) and Dr. Reddy's Laboratories (RDY-1.70%)are…
What Should Investors do?
- In the animated classic Alice in Wonderland, the White Rabbit said: "Don't just do something, stand there." That's wonderfulcounterintuitive advice. In a physical emergency, you might need to run and shout and wave your arms around; sometimes speed is essential. But when you're investing your money in a business, you should take your sweet time. That includes buying as well as selli…