Amarin (NASDAQ: AMRN) tore past the $3 level and closed at above $15 last week when the company announced topline results from a clinical study. Citi’s analysts joined the bullish parade by upgrading the stock after the market close on Friday, Sept 28. Will the stock continue its climb higher?
Amarin announced positive results for its large-scale cardiovascular outcome study, called RUDICE-IT. The trial for Vascepa showed that 4g/day reduced the advance of a CV (cardiovascular) event by 25%, compared to a placebo. Amarin will present the results in detail at the American Heart Association Scientific Sessions on November 10. AMRN stock rose nearly eight-fold from yearly lows for the week after this news.
Amarin currently has an FDA-approved indication for patients suffering from severe hypertriglyceridemia, through the use of the Vascepa drug. The only real adverse reaction to patients is hypersensitivity to fish and/or shellfish.
Valuation
Amarin’s market cap could surpass and hold the $1 billion market cap in the weeks ahead. Though the stock trades at a P/S of 24 times, the excessive valuations will shrink if sales improve. In the short-term, the stock could face selling pressure as investors lock in gains. After that, markets will look closely at the clinical results when they are presented next month in November.
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