Get set for capital raise at Amarin after ANCHOR SPA rejection

|About: Amarin Corporation PLC (AMRN)|By:, SA News Editor

"We believe the company will abandon attempts to gain approval for the indication meaning that Vascepa will only be approved for what appears to be a niche indication," says analyst William Tanner, reiterating his Market Perform rating and $2 price target on Amarin (AMRN -24.9%) following the FDA declining the reinstate the ANCHOR SPA.

Investors, he says, face significant dilution even if Amarin discontinues the REDUCE-IT trial. With $226M ($1.30 per share) in cash at the end of Q3 and an $80M/quarter burn rate this year ($30M-$40M for REDUCE-IT), the company has about two years of liquidity. "We doubt the company could achieve break-even status with just the MARINE indication."