Amarin Corporation (AMRN) announced positive results from a clinical study in which Vascepa, an EPA drug, was used to treat about 8,200 patients suffering from cardiovascular diseases. The study named as REDUCE-IT met its primary and secondary endpoints with around 25% relative risk reduction in the treated population.
Shares of Amarin skyrocketed 300% in the pre-market and opened up about 250% when the regular trading session started today.
Cardiovascular disease (CVD) is the Number 1 reason for deaths in the US and causes one death in every 38 seconds. Also, $555 billion is spent annually to treat CVD and this is expected to double within 20 years. Before going generic, statins sold over $34 billion globally with Lipitor alone accounting for over $12 billion.
The Bedminster, New Jersey-based biotech company expects Vascepa to be inexpensive and significantly reduce cardiovascular risks on top of the statin therapy. Launched in 2013, Vascepa has been prescribed over 3 million times and has got no immediate direct competition. AstraZeneca, the closest potential competitor, expects to announce its outcome study in 2019-2020.
The study was started by Amarin in November 2011 and was conducted based on a special agreement with the FDA, which was reaffirmed in 2016. Dr. Deepak Bhatt chaired this study and worked as the international principal investigator.
Amarin plans to present the results from the study during the American Heart Association Scientific Sessions meeting on November 10, 2018, in Chicago. With the positive outcome from the study, the company plans to expand its sales force from 150 to 400 in the balance of 2018.
Amarin clarified during the conference call today that it is not looking at an acquisition and will focus on maximizing the outcome from the study results. As of Friday’s closing price, the stock had dropped 25% in the year-to-date period and 8% for the year. Amarin shares, which reached the double-digits after five years, hit a fresh yearly high during today’s regular trading session.