Amarin fair value target cut at MKM after FDA decision


The FDA awarded Amarin (AMRN +3.2%) three years of marketing exclusivity that extends through July 25, 2015, but not new chemical entity status, says analyst Jon LeCroy, lowering his fair value estimate to $1.75 from $2.50.

He expects generic pharmaceutical companies to file Paragraph Four applications in the next several months, and for Amerin to file suit against the filers which will start a 30-month stay. "Vascepa has 40 issued and allowed U.S. patents that could protect Vascepa from generic entry to 2030, but the courts will decide whether any generic entrant would infringe on these patents."

He expects Amarin to challenge the FDA's decision, but nothing to come of it, and thus lowers his valuation multiple on estimated 2017 sales to 3x from 4x.

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Comments (2)
  • SharkDude
    , contributor
    Comments (766) | Send Message
     
    If Amarin is not making money why would generics think they can??? Sell side analysts are the worst. Only say sell when thing are already down. Otherwise bullish no matter what.
    24 Feb 2014, 04:08 PM Reply Like
  • WilsonWagwa
    , contributor
    Comments (86) | Send Message
     
    MKM was wrong on the way up and are wrong for sure on the way down. They are worthless like most firms.
    24 Feb 2014, 04:44 PM Reply Like
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