Amarin Corporation (
) is an Irish, late-stage biopharmaceutical company that is
starting to attract the attention of institutional investors.
Already more than 70% of Amarin is owned by institutional
investors like hedge funds and pension groups which is very
bullish. Also positive for the stock was the recent 13D filing by
SAC Capital notifying that it had raised its stake in Amarin from
4% to 5.3%.
SAC Capital is a major hedge fund with about $15 billion in
assets run by Steve Cohen, one of the sharpest investors around
today, whose personal net worth has been estimated to be as high
as $8 billion. When a major institutional investor like SAC
Capital takes and then increases its position in a company, it's
generally a very welcome sign for shareholders (so long as it
From the news of SAC Capital increasing its stake, Amarin is
up 4.67% for the last week of trading. For the last month of
market action, however, Amarin is down by 15.37%. Year to date,
Amarin is up 34.58%.
Also rising like hemlines in summer is earnings-per-share
growth: up this year by 78.69%. Next year, earnings-per-share
growth is expected to rise by more than 200%. On a quarterly
basis, earnings-per-share growth has increased by 106.78%.
Speculation is mounting that Amarin could be a takeover
target. The company recently received a patent for its
cholesterol-fighting fish-oil-based drug AMR-101. After two
successful phase 3 trials, AMR-101 is still pending approval from
the Food and Drug Administration.
This makes Amarin very attractive to a
big pharma company with a barren pipeline
looking for a new product to bring to market by acquiring
another firm. The Bristol Myers (
) bid for Amylyn Pharmaceutical (
) certainly sets a recent precedent.
As a takeover target or freestanding investment, Amarin
Corporation receives strong support from the professional
investment community. An obvious sign is the high level of
institutional ownership (which makes a takeover easier to
The mean analyst rating for Amarin Corporation is 1.40 - a
bullish rating where 1 is the best and 5 is the worst. Now
trading around $9.86 a share, the mean analyst target price
for Amarin Corporation over the next year is $20.88