This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Biotech Stock Mailbag: Amarin

Stocks in this article: AMRN AEN DCTH DNDN JNJ PFE AZN

BOSTON ( TheStreet) -- Amarin (AMRN) kicks off this week's Biotech Stock Mailbag.

Chris A. writes, "Thanks for all you do here on TheStreet. I've been reading your articles for about three and half years now and I have found you to be an excellent reporter. I have always had a passion for the markets, but I didn't think much of biotech investing until I was diagnosed with cancer a little over three years ago. Having that life-changing event got me interested in the sector, and your articles were one of the first sources I looked at to start educating myself. This morning, with the help from your reporting, my family and some of my friends scored big time with Amarin. Keep up the great work and thank you for helping us make some real money."

Thank you for the kind words and congratulations. I'm glad my earlier reporting on Amarin contributed a little to your success.

On a related note, Nancy M. emails, "What's next for Amarin? I know in the past you've discussed a possible takeover. Can you update us with your new thoughts?"

The AMR101 plus statin data from the "Anchor" phase III study released on Monday were great -- a statistically significant reduction in triglycerides at both doses versus placebo; and more importantly, AMR101 didn't raise levels of LDL, or "bad" cholesterol levels. In fact, the higher AMR101 high dose lowered LDL by 6.2% compared to placebo -- a stellar and statistically significant result.

Obviously, investors loved the data -- Amarin shares have almost doubled since Monday. The company is now an even sweeter acquisition target than before the Anchor results were released.

AMR101 looks very much like a blockbuster cardiovascular drug in the making, which should attract Big Pharma attention. Pfizer (PFE), Merck (MRK), AstraZeneca (AZN), Abbott Laboratories (ABT) all have existing cholesterol-lowering and HDL-raising drug businesses that could easily find a comfortable and profitable home for AMR101.

The timing of a potential acquisition is hard to predict. It could happen before AMR101 is approved next year for patients with very high triglyceride levels (the Marine study patient population), although I'd expect any interested acquirer will want resolution on a couple of key questions before taking the plunge. Those questions include the possibility of extended patent protection for AMR101 based on the Anchor data; and clarity on the timing of the clinical outcomes study that FDA says is necessary before AMR101 can be approved as a treatment in the much larger Anchor study population of patients with "high" triglyceride levels.

I hesitate to guess at a possible acquisition price, but I will caution that Amarin at $17 isn't a cheap stock. The fully diluted share count is around 150 million (almost all the warrants and options are in the money now), so Amarin's current enterprise value tops $2.4 billion.

This not to say that Amarin, if acquired, won't fetch a premium, but just remember that it's easy to get carried away when thinking about possible takeover prices. Clinical Data was bought by Forest Labs but at a price that disappointed some of the company's table-pounding shareholders.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs