Please ensure Javascript is enabled for purposes of website accessibility

Why Amarin Stock Is Sinking Today

By Keith Speights - Updated Apr 13, 2021 at 11:41AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's CEO announced his retirement.

What happened

Shares of Amarin (AMRN 8.51%) were 10.4% lower as of 11:20 a.m. EDT on Tuesday. The decline came after the drugmaker announced that John Thero plans to retire as president and CEO effective Aug. 1.

So what

It's not unusual for changes at the CEO level to cause a biotech stock to fall, especially when the CEO's departure is unexpected. But in this case, there don't appear to be any yellow flags with Thero stepping down.

Wood blocks showing an organizational structure with fingers holding the top block

Image source: Getty Images.

Thero was CEO for the last seven years and he's now 60, an age when many people retire. Amarin has already named his successor: Karim Mikhail, senior vice president and head of commercial for Europe, will take the reins in August.

Perhaps the main reason for Amarin's shares sinking today is that Thero's exit could lower the prospects of any merger and acquisition deals over the near term. Amarin is viewed by some as a potential buyout target. 

Now what

The main things to watch with Amarin are the company's launch of Vascepa in Europe and the anticipated approval of the drug in China later this year. Mikhail's track record of more than 20 years at Merck, including leading the big drugmaker's commercial operations for its lipid drugs, seems to make him a good fit to take the baton from Thero in overseeing these efforts. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amarin Corporation plc Stock Quote
Amarin Corporation plc
AMRN
$1.53 (8.51%) $0.12
Merck & Co., Inc. Stock Quote
Merck & Co., Inc.
MRK
$89.19 (-0.37%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.