- Selling the entire company, letting someone else deal with the launch.
- A "strategic collaboration," which probably means handing over the launch to a big pharma.
- Launch the drug itself, which could include renting a sales force from an outsourcing company.
In other words, the biotech is going to do something.
Investors seem less than thrilled with the lack of clarity on Amarin's plans. The stock is down about 10% today.
Listening to the conference call last night, it sounds like management is most interested in selling the company. That would be the cleanest pathway, given Amarin's lack of a pipeline. It just needs to find a buyer.
What's holding up the process? Most companies don't actively look for a buyer or partner right after an approval. Amarin could have sold after the phase 3 trials were successful. Everyone knew the drug was going to get approved.
It looks like potential acquirers -- and I'd throw Merck
Potential acquirers might also have been waiting for the FDA to issue the label to see how well the drug will be able to compete with GlaxoSmithKline's
Investors won't have to wait too long to see what Amarin will do. With a launch planned for early next year, the company will need to start hiring sales reps in the fourth quarter if it's going to proceed on its own.
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Fool contributor Brian Orelli holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Abbott Laboratories. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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