Dallas, Texas 10/22/2013 (Financialstrend) – Amarin Corporation plc (ADR) (NASDAQ:AMRN) is a development stage drug manufacturer. On October 17 it was announced that FDA has decided not to allow Amarin application for expanding the scope of its already approved “triglyceride Vascepa drug”. The FDA review board voted down the request in a 9 against and 2 for vote. Post the announcement, the stock of this drug designer and manufacturer crashed. It plummeted 60% in a single day of trading as investors ditched the stock in a knee jerk reaction to the FDA rejection.
Ratings agency Jefferies too seemed to mirror the sentiments of investors. Thomas Wei who has been covering this drug stock for a while now has summarily cut his price target for the stock from $20 before the FDA meeting to $4 few hours post the rejection of Amarin application. He is quoted to have commented that “We see a financing overhang, reduced partnership potential, and a delay to data. We will revisit our rating based on today’s trading and as the company’s financing strategy becomes available in due course.”
As of close of business on October 21, the stock was trading at $2.3 per share. The stock had regained a part of the huge loss they had taken the previous week. It gained 13.3% from its Friday close price. The stock also attracted huge volumes through the day with close to 25 million shares of the stock changing hands in comparison to its daily trading average of 7.6 million shares.
In spite of the strong recovery the stock is trading 82% below its 52 week high valuation. In the past month, the stock has shed 64% of its market value. Long term investors in the stock would be hoping that the drug maker will not totally abandon its trails with the Triglyceride drug.