What happened
Shares of Amarin Corporation (AMRN -0.53%) are regaining lost ground today following a business update at the Jefferies London Healthcare Conference. As of 11:20 a.m. EST, Amarin's stock was up by 15.2% in the wake of this conference presentation. During the presentation, the company's CEO, John F. Thero, provided additional color on the company's recent cardiovascular outcomes trial, REDUCE-IT, for its sole commercial-stage product, Vascepa.
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So what
Amarin's shares were getting walloped after the company's presentation at the American Heart Association meeting in Chicago last weekend. Following that presentation and an accompanying paper published in the New England Journal of Medicine covering REDUCE-IT's results, the drugmaker's shares dropped by as much as 25% in just two days of trading (Monday and Tuesday of this week).
The big concern was the potential role the study's mineral oil placebo may have had in skewing the results in Vascepa's favor. Thero, per his remarks today, downplayed this concern, noting that he believes the placebo used in REDUCE-IT was indeed "inert."
Now what
Amarin is moving to gain a label expansion for Vascepa stateside for the REDUCE-IT patient population. However, Thero said that the company is also pursuing an approval in Europe following these unprecedented results. To do so, the company may entertain partnering offers in European territories, per the company's remarks today. Any partnering deal would likely come with a sizable up-front payment and a favorable royalty rate, lessening the possibility of another capital raise.
While a European deal doesn't seem imminent, the groundwork has clearly been laid for future partnerships abroad, as well as an expansion of the drug's label to include a cardioprotective indication inside the United States. As such, Amarin's stock should continue to push higher in the days and weeks ahead.
