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Amarin Raises Funds

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Amarin Corporation plc (AMRN - Free Report) recently raised approximately $121.1 million through the issuance of 21.7 million American Depository Shares (“ADS”). The offer price was $5.60 per ADS. The underwriters were also given an option to purchase 3.255 million ADSs of Amarin to cover over-allotments, if any. The underwriters will be provided a 30-day window to do so.

Amarin intends to use the net proceeds of $121.1 million mainly for the ongoing launch of its only marketed product, Vascepa, for the MARINE indication as well as for its launch once the ANCHOR indication is approved. The funds will also be used for the company's REDUCE-IT cardiovascular outcomes trial.

Vascepa is approved in the US as an adjunct to diet for reducing triglyceride levels in adults suffering from severe hypertriglyceridemia. The company started marketing the drug in the US in Jan 2013. Amarin reported $2.34 million sales of Vascepa in the first quarter of 2013.

The company is seeking to get Vascepa approved for the treatment of adults with high triglyceride levels (≥200 mg/dL and <500 mg/dL), who are receiving statin therapy for elevated LDL-C (low-density lipoprotein cholesterol) levels. This company refers to this indication as the ANCHOR indication. In Apr 2013, the FDA accepted the supplemental New Drug Application (sNDA) for the ANCHOR indication. A response from the FDA should be out by Dec 20, 2013.

Furthermore, Amarin intends to use the recently raised funds to advance its cardiovascular outcomes study of Vascepa, titled REDUCE-IT (Reduction of Cardiovascular Events with EPA – Intervention Trial). The study, which comemcned in Dec 2011, is evaluating Vascepa’s efficacy in reducing major cardiovascular events in a high risk patient population on statin therapy.

Amarin carries a Zacks Rank #2 (Buy). Other stocks, which appear to be favorably placed include Jazz Pharmaceuticals Public Limited Company (JAZZ - Free Report) , Sarepta Therapeutics, Inc. (SRPT - Free Report) and Medivation, Inc. , all with a Zacks Rank #1 (Strong Buy).

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