Dallas, Texas 10/09/2013 (Financialstrend) – Amarin Corporation plc (NASDAQ:AMRN) is an Ireland based drug manufacturer. It stock has been under the pump over the past many months at the stock market. It has shed close to 40% of its value in the past 12 months. In fact Amarin’s shrinking market cap is quite contrary to the general trend observed in the drug manufacturing industry in the recent past. Companies with nothing more than a strong target drug in phase 3 have commanded investor interest, there by growing their market value exponentially.
All that might turn out to be a temporary setbacks if the drug maker is able to get FDA to approve or provide it with exclusivity over its fish-oil based target drug Vascepa. With the entire nation reeling at the shut down of the federal meachinery since October 1, many stake holders at Amarin were afraid that their scheduled meeting with FDA would get cancelled.
But early last week, AMRN had announced that it had received notice from FDA that the shutdown will not impact the scheduled meeting which will determine the fate of its target drug. Any positive movement for the company in terms of FED approval process for Vascepa will be great vote of confidence. The potential drug will face of with established brands like GlaxoSmithKline and AstraZeneca which have both their own fish oil based drug Lovaza and Epanova respectively.
The drug maker has a market cap of $1 billion with annual sales of $7.8 million. It has accumulated losses of $138 million over the trailing 12 months period. As of close of business on October 8, the shares are trading at $6.69 per share which is down 7.9% from its previous day close. The spooked shares attracted a lot of trader interest. Its daily trade volume yesterday was double at 9 million share changing hands in comparison to its daily average of 4.6 million shares.