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A volatile trading week last week sent shares of Amarin Corporation (NASDAQ:AMRN) flying higher on double the normal volume after the awarding of a key patent from the U.S. Patent and Trademark Office (USPTO) covering the pharmaceutical composition of Amarin's AMR101 on Tuesday, but shares took a tumble along with the rest of the market on Friday and closed at under the eleven dollar mark.

AMR-101 is a treatment for high triglycerides and is currently before the FDA for approval review with a decision due in July.

Amarin has had its ups and downs over the past couple of quarters, but the potential of AMR-101 on the open market cannot be denied. Highly successful in multiple Phase III trials, it's expected that the FDA will ultimately approve. Based on that ascertion, CNBC's Jim Cramer also mentioned the stock as a buy on his popular 'Mad Money' program.

Friday's pullback, and any others that may follow, could position AMRN as an attractive buy. Aside from the encouraging outlook relating to a potential AMR-101 approval, the company is also sitting on a solid cash position, reducing much of the inherent risk associated with investing in 'FDA decision stocks'.

Having cash in the bank provides a nice safety net for any potential delay, a key factor for a company looking to attract new investors and/or potential buyers.

It's also worth noting the buyout potential of Amarin.

Given the fact that many large pharmaceutical companies are looking to boost pipelines depleted by patent expirations, Amarin is certainly one to keep an eye on. Buyout rumors already ran the AMRN share price to nearly twenty bucks about a year ago, and it's likely that the buyout/partnership talk will again be reinvigorated if the FDA approves AMR-101 in July, as expected.

Pfizer (NYSE:PFE), for one, is just one large pharmaceutical company on the prowl for takeovers, while GlaxoSmith (NYSE:GSK) has also made headlines recently with an offer for Human Genome Sciences (HGSI) that has since gone hostile. When you also consider that Illumina Inc. (NASDAQ:ILMN) rejected two offers from Roche Holding AG (OTCQX:RHHBY) just a couple of month ago - one for $44.50/share and the other for $51/share - and that Amylin Pharmaceuticals (ALMN) turned away Bristol-Myers Squibb Company (NYSE:BMY) last month on a $3.5 billion, $22/share offer, it's easy to see why the buyout ball has been placed firmly in the hands of companies looking to be purchased, such as Amarin.

Additionally, since the general sentiment has it that AMR-101 will be approved shortly, it's also not out of the question to consider that an offer may roll in before the decision date, although the fact that no such offer has rolled in just yet indicates that big pharma is waiting to see what they would have for sure before jumping in.

Given all the catalysts surrounding Amarin right now, both actual and potential, Amarin Corporation is one to keep on the 'hot list' right now.

Source: Amarin Corporation Is On The 'Hot List' With Catalysts Pending