Five months ago I talked about Amarin and their Vascepa drug,
Vascepa, a drug derived from fish oil, has been on the market in the U.S. since 2012, but has only managed about $100 million in sales for in 2018 thus far. However, the results obtained last week, opens up a whole new market for the Vascepa. Amarin has suggested that Vascepa could now generate up $2 billion in sales.
Vascepa is the only fish-oil product of its kind on the market, costing only $1500/yr, but as low as $3 / month with insurance. Amarin is actually aiming to file the supplemental MD&A by early 2019 with approval anticipated in late 2019.
Although I like following tech companies, I have been working in the pharmaceutical industry most of my career. I have seen Big pharm companies merge, while finding the next billion dollar drug remains elusive. With that said, based on the potential of Vascepa, I think Amarin will be bought out within the next 12-24 months.
I have noticed bullish call options in Amarin in the last several weeks, but noticed unusual options activity with the Smart Money buying a ton of the April, $20 strike call options this past Friday. This buying interests only caused the stock price is rise $2.44 or 14% on Friday.
There is chatter on the Street that Pfizer is interested in making a bid for Amarin to gain possession of Vascepa, Amarin’s omega-3 fatty-acid drug derived from fish oil. I’m sure other players will get in the mix as well based on the potential of Vascepa. Thus, longer term targets on Amarin still remain the following:
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.