Amarin (AMRN) Stock: Next Stop, $15?

It’s a very rewarding trading day for investors in Amarin (AMRN) with shares up over 230%, making the stock Wall Street’s bull of the day. Why the excitement? The fish oil drug maker announced positive results from its large-scale cardiovascular outcomes study REDUCE-IT for Vascepa. REDUCE-IT met its primary endpoint demonstrating an approximately 25% relative risk reduction, to a high degree of statistical significance, in major adverse CV events in the intent-to-treat patient population with use of Vascepa 4 grams/day as compared to placebo.

In reaction, Cantor analyst Louise Chen boosts his price target on AMRN from $10.00 to $15.00, while reiterating a Buy rating on the stock. (To watch Chen’s track record, click here)

Chen commented, “REDUCE-IT results today could change the treatment paradigm for CV disease. There are 57MM-70MM patients with elevated triglycerides (TG) to the level that AMRN looked at in its study. Vascepa could be the advent of “statin therapy” for patients with high TG.” Furthermore, “The data today prove that EPA is different than other omega-3s. The effects of Vascepa are broad. Outcomes results are the proof. JELIS built the hypothesis, REDUCEIT demonstrated the proof. There are now two successful studies with EPA. All studies of omega-3 mixtures on top of statins failed. EPA doesn’t lower LDL. EPA lowers markers of inflammation. EPA lowers ApoB. There are other differences as AMRN has highlighted in publications over the years. None of this can be said for any other omega-3. Dose, patient population and most importantly drug differentiation are key.”

The analyst concluded, “The increase in our PT is driven by higher estimated peak sales for Vascepa (to $1.1B from $648.2MM). This is supported by better than expected, positive results from AMRN’S REDUCE-IT trial. Given the robust data, we think the peak sales potential for Vascepa remains underappreciated, and AMRN looks more interesting in consolidating industry.”

The word on the Street rings largely bullish on this drug maker, backing Chen’s confident move, with TipRanks analytics demonstrating AMRN as a Buy. Out of 4 analysts polled in the last 12 months, all 4 are bullish on Amarin stock. (See AMRN’s price targets and analyst ratings on TipRanks)


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