Up 95%! No Anchor Holding Amarin Down

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

There's nothing fishy about Amarin's (Nasdaq: AMRN  ) latest results on AMR101 -- besides the fact that the drug is made of fish oil, of course.

In its second phase 3 trial, dubbed Anchor, AMR101 was able to reduce triglycerides by a placebo-adjusted 21.5% at the higher dose and 10.1% at the lower one. The drug also lowered bad cholesterol levels by 6.2% versus placebo at the higher dose, which is rather impressive considering the patients were already taking statins such as Pfizer's (NYSE: PFE  ) Lipitor, AstraZeneca's (NYSE: AZN  ) Crestor, and Merck's (NYSE: MRK  ) Zocor.

A slight reduction in bad cholesterol levels was also seen at the lower dose, but it wasn't statistically significant. The lower dose is likely still approvable, though, since the main point of the medication is to lower triglyceride levels. The fact that it doesn't raise bad cholesterol levels -- like GlaxoSmithKline's (NYSE: GSK  ) fish oil drug Lovaza does -- should be good enough.

The Anchor trial results were actually more important than the previous Marine phase 3 trial because the potential population is about 10 times greater. Marine tested patients with extremely high triglycerides, while Anchor tested patients with mixed triglyceride levels.

Even after the run-up today, Amarin doesn't look overvalued. A market cap of $1.8 billion isn't all that expensive when you consider that Lovaza brought in more than $800 million last year and that a lot more patients should be able to take AMR101.

At this point, the only thing anchoring down Amarin down is time. The company is shooting for a third-quarter filing with the Food and Drug Administration, so it won't get an approval and start generating revenue until next year.

That is, of course, if a big pharma doesn't buy it first.

Interested in up-and-coming technology? Click here to get the Fool's free report, "The Only Stock You Need To Profit From the NEW Technology Revolution."

Pfizer is a Motley Fool Inside Value selection. GlaxoSmithKline is a Motley Fool Global Gains recommendation. The Fool owns shares of GlaxoSmithKline. 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.

Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (6)

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.

Compare Brokers

Fool Disclosure

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: 1477191, ~/Articles/ArticleHandler.aspx, 10/25/2016 5:27:48 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
AMRN $3.29 Down +0.00 +0.00%
Amarin CAPS Rating: ****
AZN $29.79 Down -0.29 -0.96%
AstraZeneca CAPS Rating: ****
GSK $40.32 Down -0.36 -0.88%
GlaxoSmithKline CAPS Rating: ***
MRK $61.95 Up +1.20 +1.98%
Merck and Co. CAPS Rating: ****
PFE $32.28 Up +0.15 +0.47%
Pfizer CAPS Rating: ****