Please ensure Javascript is enabled for purposes of website accessibility

Why Amarin Fell Again Today

By Eric Volkman - Jun 22, 2021 at 6:13PM

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

Another Vascepa generic is launched in the U.S.

What happened

This surely won't be a week to remember for Amarin (AMRN 0.78%). Following Monday's stinging Supreme Court loss regarding patent protection for its one and only commercialized drug, on Tuesday one of the company's rivals announced the launch of a new generic for that product. Amarin's shares fell by 3.2%.

So what

The ruling scotched Amarin's attempt to dispute a lower court's decision that its core patents on the drug, Vascepa, were invalid. So now that they are entirely free to make Vascepa generics without worrying about a legal reversal, pharmaceutical companies eagerly continue to do so.

On Tuesday Dr. Reddy's Laboratories (RDY 0.42%) formally launched its icosapent ethyl capsules, which will be available in 120-count bottles of 1-gram capsules. This product was approved by the Food and Drug Administration (FDA) last August.

Person about to ingest medication.

Image source: Getty Images.

Dr. Reddy's, not coincidentally, was one of the two generic-drug makers (along with Hikma Pharmaceuticals) embroiled in that original patent protection case against Amarin. Hikma rolled out its own icosapent ethyl capsules last November.

Many pharmaceutical industry experts consider Vascepa to be a potential blockbuster drug. Derived from fish oil, it has been shown to be quite effective in treating patients with elevated triglyceride levels.

Now what

The Dr. Reddy's rollout is a fresh nail in the coffin for Amarin's big Vascepa dreams in the U.S. While the branded drug still has great potential, this will have to be realized in a collection of markets abroad rather than this one massive and lucrative country.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Hikma Pharmaceuticals. 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
$1.29 (0.78%) $0.01
Dr. Reddy's Laboratories Limited Stock Quote
Dr. Reddy's Laboratories Limited
$52.66 (0.42%) $0.22
Hikma Pharmaceuticals PLC Stock Quote
Hikma Pharmaceuticals PLC
$38.60 (-1.43%) $0.56

*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
S&P 500 Returns

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

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.