H.C. Wainwright Maintains Neutral On Amarin Following 2Q14 Results

In a research note published August 8th, H.C. Wainwright analyst Andrew Fein maintained a Neutral rating on Amarin Corp. (AMRN) with a $2.50 price target, following the announcement of the company’s second-quarter results. The company’s quarterly results led Fein to “applaud management for its performance in difficult times.”

Fein wrote, “Amarin reported 2Q financials, including 12.6M in Vascepa sales (+15% QoQ; consistent with 18% growth in prescriptions). Importantly, June was the first full month when the home sales reps (n=130) were joined by the Kowa co-promotion team (n=250). Although management conservatively noted that co-promotion of therapies for chronic diseases may take six months, we believe that we may be able to see an inflection in Vascepa sales within the remainder of the year (note that the Kowa reps are only marketing two products, and the Kowa quarterly fee is a single digit percentage of gross margin). Overall, we applaud the embattled current management for executing small, albeit tangible improvements while in the middle of a challenging situation on all fronts: financial, regulatory, and legal.”

Fein added, “While the financial position of the company remains challenging, and the financing (and thus fate) of the value-driving REDUCE-IT study remains dependent on winning what we view as an unwinnable fight with the FDA for label expansion, we will continue to look for potential indicators of inflection now that in, our view, management may have finally ushered in a steady state after two difficult quarters.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Fein has a total average return of 5% and a 59.1% success rate. Fein is ranked #1248 out of 3214 analysts.

To read more rating news on AMRN click here.


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