Amarin stock – does your portfolio need it this year?
Some people look to biotech stocks for good investments. Sadly, Amarin stock is one of the options that have been doing poorly in recent years. Will Amarin Corp PLC convince people to invest with its latest projects?
First, let’s go through a few basics about Amarin Corp and its original heart drug. Then, we’ll proceed with its recent moves and issues that have affected Amarin shares. More importantly, we’ll see if you need Amarin stocks in your portfolio.
Healthcare is one of the sectors that are booming during the COVID-induced economic downturn. In response, you should be on the lookout for stocks in this field. As you’ll see, Amarin stock might be a must-have investment for 2021.
What is Amarin Corp?
Amarin Corporation PLC is a biopharmaceutical company “focused on developing and commercializing therapeutics.” Specifically, it focuses on heart medicines.
John Thero is the President and CEO. Amarin’s headquarters is in Dublin, Ireland. Also, it has a US office in Bridgewater, New Jersey.
Amarin Corp’s biggest product is VASCEPA. Through their lipid science research, they’ve derived Icosapent Ethyl from fish. It’s a major component of this heart drug.
Specifically, it may lower the risk of heart diseases like stroke. With a low-fat diet, adults could also lower their levels of fat by taking VASCEPA.
This proved to be a wonder drug for Amarin stock too. In 2018, the price shot up to a staggering 239%! Then in 2019, it went up again by 26%!
These were caused by VASCEPA’s stellar results in a study from September 2018. Then for 2019, Amarin’s stock price climbed up due to rumors that Pfizer may bid for the company.
What has Amarin been doing?
There are signs that Amarin stocks may take off in the stock market again. The pharma company is finding new markets in countries outside the United States.
On February 9, 2021, VASCEPA is now under regulatory review in China and Hong Kong. If successful, this opens up a huge Asian market for this heart medicine.
On March 30, 2021, the European Commission approved Amarin’s VAZKEPA for commercial use. In other words, people in that part of the world may buy them soon.
As more people buy VASCEPA, this could mean more revenue for the pharma corp. Eventually, Amarin stocks may soar once again. That’s why some folks at Wall Street suggest holding some!
Amarin’s stock is sinking today?
Recently, a US Supreme Court ruling rejected the company’s bid to revive Vascepa patents. Two other pharma companies went into a legal battle with Amarin over this issue.
Amarin wanted them back due to generic competition from Dr. Reddy and Hikma. These companies said that the patents were not valid.
According to Hikma and Dr. Reddy, this is because they were based on earlier studies. In response, the Court agreed with their argument.
The decision allowed a generic version of the heart drug. In turn, this took out $3.5 billion of Amarin’s market cap. Hikma released its generic VASCEPA drug in November.
Last year, a federal judge also ruled that Amarin’s patents were not valid. As a result, Amarin stock prices dropped by almost 70%. You may see the effects in its current price charts too.
It was doing great from 2019 to early 2020. Amarin stock price reached up to $22.57 on December 9, 2020. Then it went down to $4.11 on November 11 last year.
Should you still invest?
At the time of writing, it’s down at $4.48. How should you invest in Amarin stock? Will it grow because of overseas markets? Or will it stay down due to generic heart meds?
Remember when we said Wall Street suggests “holding” the stock? This means you should keep it if you already have some. Otherwise, it’s best not to buy Amarin stock this year.
Then, think about the demand for heart medicines. If the company sells more VASCEPA to other countries, this could increase sales. As a result, its stock price could rise once more.
It chose countries that have numerous people with heart conditions. That’s millions upon millions of potential buyers of VASCEPA. Still, the generics could be a risk.
The generics might become as effective as Amarin’s drug. Also, they could cost far less. In turn, customers may pick those over Amarin’s meds.
More importantly, consider the pandemic. Sadly, it’s not over yet. Countries locked down to prevent the spread of COVID. However, it came at the expense of their economies.
As a result, we’re going through a shortage of various important products. Supply chains aren’t back to normal. Getting goods back and forth among countries is still hard.
This could affect other materials used for VASCEPA. If not, it might cause problems with its distribution in several countries. This may shoot up prices, too, reducing potential buyers.
There are so many factors that could mess with the Amarin stock price predictions. Still, Amarin stock has growth potential. Perhaps not in the short term, but in the long term.
If you already have Amarin stocks, you may want to keep them. Otherwise, you might want to get better options for your portfolio. Stocks from certain sectors are still doing great lately.
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Final thoughts
Note that many things could affect Amarin stock prices. All investments have some risks. Please look into the stock yourself to make sure it’s worth buying.
Read other reviews about the company and its stock. See what its plans are for the future. This will help you find out if its stock price is likely to increase.
For example, you may look at Amarin NASDAQ (AMRN) stock quotes online. However, you should check out other websites too. Also, see real-time info about Amarin stock.
You may want to check other stocks by reading this other article. The stocks mentioned belonging to sectors that are likely to do well despite COVID.
Learn more about Amarin stock
What is the stock price for AMRN?
At the time of writing, stock from Amarin costs $4.48. See other websites for the updated price. Amarin’s investor page also shows the latest stock price.
Why is Amarin stock going down?
We’re now seeing generic versions of VASCEPA on the market. Courts also didn’t allow Amarin to get its patents back.
Does Amarin pay dividends?
Amarin stock doesn’t give dividends right now. That’s why you’ll find its dividend history empty on various stock market websites.
Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.
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