Amarin Corporation plc (NASDAQ: AMRN) is having a relatively strong start to the trading session this morning, much needed gains following recent declines. While there has been no news issued, the gains are happening for good reason as investors decide to jump in on the discount. Today, we’ll talk about:
- Why AMRN is up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s What’s Going On With AMRN
As mentioned above, Amarin is having a relatively strong day in the market today, bouncing back from recent declines. To understand the gains, it’s important that you know the full story. Here’s what’s happening:
Recently, AMRN announced that it is expecting lower sales than it originally projected for the full 2019 year. In fact, the company said that sales would come in around $350 million. Investors were expecting for Vascepa sales to come in around $417.5 million. As a result, the stock started to plumet and found its way to a loss of around 50% from its recent high reached just months ago.
There are a couple of things to consider here. Investors were expecting for 2019 to be a smash hit year for Vascepa after the positive cardiovascular outcome data was released late in 2018. This is where things get interesting.
Ultimately, Management at AMRN said that investors can’t expect for large growth in Vascepa’s sales until its label is officially changed by the FDA. This could take some time. Nonetheless, the data shows that management may be making these statements from a strategic standpoint.
Think about it, if the company sets the bar low and breaks far past it, investors are going to be excited, sending the stock running for the top. That seems to be what’s happening here. In fact, if you look at Vascepa sales data, you can see that in recent weeks, a noteworthy uptick in sales has already started. While the gains in sales may not be as great as expected until the label is changed, I believe that management downplayed expectations and that the $350 million number will be beat. After all, there’s no reason that we can expect for increasing sales to suddenly plateau.
What We’re Seeing From The Stock
It seems as I’m not the only one that is seeing opportunity in Amarin today. After all, the stock is climbing in the market. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:45), AMRN is trading at $13.89 per share after a gain of $0.69 per share or 5.23% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on AMRN. In particular, we’re interested in following the story surrounding the company’s continued work to improve the sales of Vascepa, with recent data showing gains, the story is becoming more and more exciting. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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