1 Biotech Stock to Avoid at All Costs
With more than $623 million in cash and investments, over $400 million in annual revenue (growing at double- to triple-digit percentages every year), and a $2.68 billion market cap, biotech company Amarin (NASDAQ: AMRN) looks to be in a great position. You may be wondering whether shares might be a steal right now.
As it turns out, if something seems too good to be true, it usually is: All U.S. patents covering Amarin's one and only commercialized product, Vascepa, were invalidated by a Nevada judge in March. When a branded drug loses patent protection and copycat drugs enter the market, its price can decline by more than 80% to 90% within a few years because of fierce competition.
Is Amarin about to endure a devastating business mishap? Let's find out.
Source Fool.com
