Amarin Corporation plc (ADR) (AMRN) Has New Advantage In Defending Market Share After Filing ITC Lawsuit
Amarin Ventures to Shield Omega-3 Candidate Vascepa from Adverse Competition
Amarin Corporation plc (ADR) (NASDAQ:AMRN) hit back yesterday at the U.S. import and sale of synthetic EPA-predominant omega-3 products with an ITC lawsuit. These products are mostly made of EPA and either sold as or for use in domestic dietary supplements, and the biotech firm is taking steps to protect its lead asset: Vascepa, a purified type of omega-3 for decreasing high triglyceride levels.
Cantor analyst Louise Chen cheers “catch, but don’t release,” as this lawsuit is a protective swipe against the competitive arena. “This lawsuit helps Amarin defend its market share against illegal competition,” explains the analyst, who believes, “We think these products are unapproved new drugs under applicable law disguised as dietary supplements.”
Therefore, the analyst reiterates an Overweight rating on shares of AMRN with a $10 price target, which implies a 203% upside from where the stock is currently trading. (To watch Chen’s track record, click here)
“Amarin contends that these products are unapproved new drugs under applicable law and therefore amount to injurious unfair competition with Vascepa. We think it is important to note that this lawsuit does not target a large majority of omega-3 dietary supplements, but only those which have synthetically modified oil that contains more EPA than DHA or any other component. Amarin is seeking the issuance of a general exclusion order prohibiting importation into the U.S. of the specified products,” surmises Chen, who sees this as a key footstep to the firm safeguarding a multi-billion dollar market opportunity in the cardiovascular market.
It appears the analyst will not be the only one taking the news in confident stride, as most of the Street is betting on this biotech firm. TipRanks analytics exhibit AMRN as a Strong Buy. Out of 3 analysts polled by TipRanks in the last 3 months, all 3 are bullish on Amarin stock. With a return potential of 156%, the stock’s consensus target price stands at $8.50.