Why Is Amarin Down Today?

Amarin  (Nasdaq: AMRN  ) generated a lot of investor excitement this summer when its hypertriglyceridemia drug Vascepa was approved by the FDA. Its main competitor in this therapeutic area is GlaxoSmithKline's (NYSE: GSK  ) Lovaza.

While the stock is up significantly year to date, its share price took a hit today on news that the FDA still hasn't decided whether Vascepa qualifies as a New Chemical Entity, or NCE. Drugs that gain NCE status enjoy five years of exclusivity on the market, while those that don't only get three years. Nevertheless, in both cases Amarin will have to rely on its intellectual property to shield Vascepa from generic competition beyond these time frames.

In the following video, health care analysts Max Macaluso and David Williamson expand on these points and discuss Amarin's drop today.

The biotech space is generally very risky for investors, but one of the best ways to absorb losses is to balance your portfolio with stable stocks that can help you build long-term wealth. After all, we would all like to retire well.  In our free report "3 Stocks That Will Help You Retire Rich," we reveal companies that you can integrate into your wealth-building strategies. Grab your copy today by clicking here -- it's totally free.

Max Macaluso has no positions in the stocks mentioned above. David Williamson owns shares of Amarin, but he holds no other position in any company mentioned. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2052123, ~/Articles/ArticleHandler.aspx, 11/24/2014 8:08:23 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement