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!

Amarin CEO Remains Dumbstruck as Patent Worries Roil Stock

Stocks in this article: AMRN

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

MYSTIC, Conn. ( TheStreet) -- Amarin (AMRN) shares are again being roiled Wednesday by concerns about a patent covering its experimental lipid-lowering drug AMR101. And once again, Amarin management says nothing, exacerbating the stock's volatility and hurting shareholders.

The U.S. Patent and Trademark Office (USPTO) issued another "non-final rejection" of an Amarin patent application on Oct. 26, according to a posting on the USPTO web site. Amarin shares fell 88 cents, or 10%, to $8.10 in Wednesday trading and were down as much as 16% earlier in the day -- partly because Amarin made no public statement, leaving investors to figure out on their own what the USPTO's response means.

I can't decide if Amarin CEO Joe Zakrzewski is totally incompetent or just merely clueless. He must know that investors are confused about the intellectual property protection covering AMR101 and that this uncertainty is killing Amarin's stock price. Amarin trades like AMR101 is a failed drug when in fact, the drug's clinical data are spectacular, FDA approval is pending and the commercial potential is measured in the billions of dollars.

Yet instead of holding a conference call with investors to explain how Amarin is dealing with U.S. patent examiners to secure needed patent protection for AMR101, Zakrzewski keeps his highly compensated mouth zipped tight.

Should I just reward Zakrzewski with the 2011 Worst Biotech CEO of the Year Award right now?

Amarin has filed for multiple method-of-use patents that would grant additional years of exclusivity to AMR101 as a treatment for patients with very high levels of triglycerides, or soluble fats in the blood. Under FDA law, Amarin would get five years of exclusivity -- likely extended by another 18 months -- to sell AMR101 without further patent protection once the drug is approved. But getting additional patent protection to keep generic competitors on the sideline is important for peak sales of AMR101 and Amarin's valuation.

In August, the USPTO issued a "final rejection" notice of Amarin's AMR101 patent application. Amarin appealed the decision and has been negotiating with the patent examiners in what is a back-and-forth process. Wednesday's disclosure of a "non final rejection" may actually suggest that the USPTO has agreed to accept some of Amarin's patent claims previously rejected. It may also mean that patent examiners have raised new issues that need to be addressed.

1 of 2

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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