Good Entry Point for Amarin Stock? Not Just Yet, Says Analyst, , on November 9, 2020 at 11:58 pm

By ILP
On 11/09/2020
In Financial News
Tags:

Many companies will be glad to put 2020 behind them and you can certainly add Amarin (AMRN) to the list. Similarly, to other names, Covid-19 has played its part in the struggle, but the coronavirus has only exacerbated Amarin’s other non-macro related problems.Namely, the loss of a patent case and subsequent appeal for the company’s high triglyceride treatment Vascepa. Generic drug makers Hikma Pharmaceuticals and Dr. Reddy’s won against Amarin and now plan on bringing their own generic versions to market.That said, sales of Vascepa – Amarin’s sole product – did come ahead of analysts’ expectations in the company’s recent Q3 earnings report. At $156.5 million, sales increased by 39% year-over-year and beat consensus by $1.87 million.However, Oppenheimer analyst Leland Gershell reminds investors the revenue uptick was countered by a “proportionately higher increase in SG&A expense.” At 46% year-over-year, the rising outlay fuels Gershell’s “long-standing concern that sustainable franchise profitability will be elusive.”There are other issues, too. Covid-19 will “continue to be a meaningful drag on near-term growth,” with winter approaching and the specter of further lockdowns making it difficult for Vascepa to “post meaningful growth through year-end.” Additionally, despite Amarin’s request for an en banc review, a patent decision reversal on Vascepa is unlikely.Furthermore, Gershell believes Amarin’s plan to compensate for the loss of US Vascepa sales with a commercial push in Europe amounts to a questionable opportunity.“AMRN anticipates EMA approval in early 2021 and is in the process of hiring sales representatives and conducting market access negotiations in Europe,” the analyst said. “Given the lackluster picture registered by Vascepa in its US commercialization, we have little reason to believe Vascepa will fare better in the fragmented and incrementally cost-sensitive European pharma market.”As a result, Gershell sticks to his Market Perform (i.e. Hold) rating, without suggesting a price target. (To watch Gershell’s track record, click here)There are 4 other analysts who think along the same lines and currently recommend the stock a Hold, too. However, with 7 additional Buys, the analyst consensus for Amarin is a Moderate Buy. Meanwhile, the average price target, at $10.64, implies a hefty 149% premium over the next 12 months. (See AMRN stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Good Entry Point for Amarin Stock? Not Just Yet, Says AnalystMany companies will be glad to put 2020 behind them and you can certainly add Amarin (AMRN) to the list. Similarly, to other names, Covid-19 has played its part in the struggle, but the coronavirus has only exacerbated Amarin’s other non-macro related problems.Namely, the loss of a patent case and subsequent appeal for the company’s high triglyceride treatment Vascepa. Generic drug makers Hikma Pharmaceuticals and Dr. Reddy’s won against Amarin and now plan on bringing their own generic versions to market.That said, sales of Vascepa – Amarin’s sole product – did come ahead of analysts’ expectations in the company’s recent Q3 earnings report. At $156.5 million, sales increased by 39% year-over-year and beat consensus by $1.87 million.However, Oppenheimer analyst Leland Gershell reminds investors the revenue uptick was countered by a “proportionately higher increase in SG&A expense.” At 46% year-over-year, the rising outlay fuels Gershell’s “long-standing concern that sustainable franchise profitability will be elusive.”There are other issues, too. Covid-19 will “continue to be a meaningful drag on near-term growth,” with winter approaching and the specter of further lockdowns making it difficult for Vascepa to “post meaningful growth through year-end.” Additionally, despite Amarin’s request for an en banc review, a patent decision reversal on Vascepa is unlikely.Furthermore, Gershell believes Amarin’s plan to compensate for the loss of US Vascepa sales with a commercial push in Europe amounts to a questionable opportunity.“AMRN anticipates EMA approval in early 2021 and is in the process of hiring sales representatives and conducting market access negotiations in Europe,” the analyst said. “Given the lackluster picture registered by Vascepa in its US commercialization, we have little reason to believe Vascepa will fare better in the fragmented and incrementally cost-sensitive European pharma market.”As a result, Gershell sticks to his Market Perform (i.e. Hold) rating, without suggesting a price target. (To watch Gershell’s track record, click here)There are 4 other analysts who think along the same lines and currently recommend the stock a Hold, too. However, with 7 additional Buys, the analyst consensus for Amarin is a Moderate Buy. Meanwhile, the average price target, at $10.64, implies a hefty 149% premium over the next 12 months. (See AMRN stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Contact Us

Please use our Instant Quote form to see if you're pre-qualified for a non-recourse stock loan, or if you have any questions or feedback, please email, call or chat with us.

deals@internationalliquiditypartners.com

+44 20 3994 1588

Headquarters: Hunkins Waterfront Plaza, Charlestown, Nevis

Open 24 hours a day / 7 days a week / 365 days a year

 

 

 

Frequently Asked Questions

What Is Securities-Based Lending?
Securities-based lending, or a stock loan, is the practice of using market investments such as stocks, ETF’s, warrants, bonds, or real estate investment trusts as collateral for a loan.
How much money can I get for my securities?
Borrow up to 80% of the value of your pledged investments giving you the capital you need to expand your business, purchase real estate, or tackle a costly project.
What happens if my securities lose value?
With a non-recourse stock loan, you can walk away from your securities at any time and keep the loan money with no negative credit consequences even if the investments lose value.
Is my information safe with ILP?
We pride ourselves on outstanding service and make client confidentiality our top priority. You can always be absolutely certain your information is safe with us.
How long does it take for the disbursement of funds?
Most of the transactions we process take less than 7 days from application to the disbursement of funds giving you cash quickly when you need it most.
What credit score do I need to qualify?
There are no credit checks or personal guarantees necessary with our services. Your pledged securities are the only collateral required for the loan you receive.

Instant Quote

Please fill out your information to see if you are pre-qualified.

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

International Liquidity Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

International Liquidity Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with International Liquidity Partners, LLC’s internal lending policies. International Liquidity Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Nevis Office

Main Street
Hunkins Waterfront Plaza
Charlestown, Nevis

New York Office

Coming Soon!

Follow Us

Market Coverage