Is Amarin Stock a Buy?
Irish biopharmaceutical company Amarin (NASDAQ: AMRN) posted record revenue of $155 million in its first-quarter earnings reported April 30, marking an 112% year-over-year increase for a net loss of $20.6 million, or $0.06 per share. The company's sole product, Vascepa, is a drug derived from fish oil. It was approved by the U.S. Food and Drug Administration (FDA) as an add-on with statin therapy to lower the risk of heart attack, stroke, and cardiovascular disease and to bring down high levels of triglycerides in adult patients.
Shares of Amarin are down 65% year to date, underperforming both the Virtus LifeSci Biotech Products ETF and SPDR S&P Biotech ETF. The stock plummeted in late March after the company lost a patent trial it had brought against two generic drug manufacturers, Hikma Pharmaceuticals and Dr. Reddy's Laboratories, which were seeking to sell an equivalent version of Vascepa. The decision weakened Amarin's protection against potential generic competition, and the company filed an appeal with a federal circuit court earlier this month. The outcome of that decision will be key for Amarin's revenue in the U.S., and the company anticipates a ruling near the end of 2020 or in early 2021.
Investors may want to know whether this stock is worth considering. Here are the key takeaways.
Source Fool.com
