Monday, April 18, 2011

Amarin (AMRN) Shares Skyrocket on Heart Drug Study

Shares of Amarin (NASDAQ:AMRN) soared after studies concluded that AMR101, the fish-oil treatment of the company, lowers lipid levels without boosting bad cholesterol.

“We believe a new era of cardiovascular therapies is emerging,” Amarin CEO Joseph Zakrzewski told investors on a conference call.

The drug has been rejected in the past because US Food and Drug Administration officials said it increased LDL, or bad cholesterol in some patients at the time.

This study showed the company has been able to overcome those prior results, paving the way for probable approval. If approved, AMR101 would compete with Glaxo's (NYSE:GSK) Lovaza.

In a note to clients, Leerink Swann analyst Joseph Schwartz said if approved, Amarin's drug would outsell Lovaza sales, as it “has unique qualities that may result in a better product profile than other blockbuster drugs used to lower triglycerides.”

Amarin was trading at $15.66, gaining $6.89, or 78.60 percent, as of 1:09 PM EDT.

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