Amarin (NASDAQ:AMRN) gained FDA approval for its drug Vascepa last summer and this lipid-lowering compound is already available to patients in the U.S. However, the company announced today that it has submitted an sNDA, or supplemental new drug application, to expand the drug's approval to a wider patient population. In this video, Fool health-care analyst Max Macaluso explains what this application means, why wider approval could potentially be a boon for this biotech, and long-term risks that investors can't ignore.

Max Macaluso, Ph.D. has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.