Vascepa lowers fat level in blood by reducing triglycerides in the body when taken along with a proper diet.
Revenue is expected to jump about 64% to $72.2 million, riding on the strong demand for its Vascepa capsules. Separately, as Amarin expands the sale of Vascepa across international markets, it is set to receive higher commercialization fees from its licensed partners.
Earlier today, the company announced that it has filed a New Drug Submission with Health Canada for Vascepa.
Amarin shares have gained 46% since the beginning of this year, outperforming the industry which has grown just over 2%. Three events had set the stage for the stock rally this year: Rumors that Novartis (NYSE: NVS) was interested in acquiring it; a better-than-expected revenue growth in Q4; and reports that the American Diabetes Association had given a positive note on its Vascepa capsule.
In Q4
In the last reported quarter, Amarin surpassed analysts’ expectations on revenues, while net loss came in higher-than-expected. Shares rose 3.9% in premarket hours on Wednesday.
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Total revenues of $77.3 million were up 44% year-over-year, primarily reflecting Vascepa prescription growth. Net product revenue totaled $77.1 million, mainly due to increased Vascepa prescriptions in the US.
The stock has a 12-month price target of $38.67, suggesting a 100% upside from the last close.