Amarin Stock Has Soared. Why Citi Thinks It's Gone Far Enough.

Josh Nathan-Kazis Barron's Take Health AMRN Amarin Biotechnology Pharmaceuticals Cardiovascular Drugs Health Care/Life Sciences Biopharmaceuticals Specialized Drugs/Medications Beatty Joel Beatty Financial Performance Analysts' Comments/Recommendations Share Price Movement/Disruptions Corporate/Industrial News Content Types Factiva Filters C&E Exclusion Filter C&E Industry News Filter AMRN I/BTC I/DRG M/HCR N/ANL N/ARG N/CNW N/DJN N/PFM N/WER Barrons.com Barrons Blogs Wires CODES_REVIEWED Companies Health Barron's Take US author Josh Nathan-Kazis author|Josh Nathan-Kazis topicid 8583 name Josh Nathan-Kazis extractedtext Josh Nathan-Kazis rank 1 codetype author code josh_nathan_kazis nameformat surname_first author Josh Nathan-Kazis id Josh Nathan-Kazis barrons_display_brand BARTAKE barrons_display_brand|BARTAKE codetype BARRONS_DISPLAY_BRAND canbedisplaybrand true value BARTAKE source MANUAL status modified name Barron's Take code BARTAKE barrons_display_subject BARHEALTH barrons_display_subject|BARHEALTH codetype BARRONS_DISPLAY_SUBJECT canbedisplaysubject true value BARHEALTH source MANUAL status modified name Health code BARHEALTH co ethold co|ethold country US symbol AMRN displayname Amarin why about extractedtext Amarin source FACTIVA occurs true seoname amarin orgtype public countrycode US relevancerange high chartingsymbol STOCK/US/XNAS/AMRN fcode ethold fullextractedtext Amarin ticker AMRN confidence 90 subcat com relevance 82 significance prominent onlinesignificance prominent name Amarin confidencerange high exchange Nasdaq exchangeisocode XNAS codetype co code ethold company AMRN company|AMRN name Amarin’s significance PASSING-MENTION name Amarin significance PROMINENT djn AMRN djn|AMRN significance prominent onlinesignificance prominent name AMRN why about source FACTIVA occurs true fcode AMRN codetype djn code amrn djn I/BTC djn|I/BTC significance prominent onlinesignificance prominent name I/BTC why about source FACTIVA fcode I/BTC codetype djn code i_btc djn I/DRG djn|I/DRG significance prominent onlinesignificance prominent name I/DRG why about source FACTIVA occurs true fcode I/DRG codetype djn code i_drg djn M/HCR djn|M/HCR name M/HCR why lineage source FACTIVA fcode M/HCR codetype djn code m_hcr djn N/PFM djn|N/PFM significance prominent onlinesignificance prominent name N/PFM why about source FACTIVA fcode N/PFM codetype djn code n_pfm djn N/ANL djn|N/ANL significance prominent onlinesignificance prominent name N/ANL why about source FACTIVA fcode N/ANL codetype djn code n_anl djn N/ARG djn|N/ARG significance prominent onlinesignificance prominent name N/ARG why about source FACTIVA fcode N/ARG codetype djn code n_arg djn N/CNW djn|N/CNW name N/CNW why lineage source FACTIVA fcode N/CNW codetype djn code n_cnw djn N/DJN djn|N/DJN codetype djn value N/DJN source DJN-CONTROL status modified inactivebydefault true name N/DJN code n_djn djn N/WER djn|N/WER codetype djn value N/WER source DJN-CONTROL status modified inactivebydefault true name N/WER code n_wer editorial-seo-id amarin-stock-downgrade-vascepa-51574084171 editorial-seo-id|amarin-stock-downgrade-vascepa-51574084171 first_publish_headline Amarin Stock Has Soared. 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Citi Thinks It’s Gone Far Enough. Amarin Stock Has Soared. Citi Thinks It’s Gone Far Enough. Amarin Stock Gets a Downgrade After a Blockbuster Week

Citi Research downgraded Amarin stock, after positive news for its heart drug Vascepa sent it soaring. Citi says Vascepa’s promise is now priced in.

Amarin Stock Has Soared. Why Citi Thinks It’s Gone Far Enough.

Citi downgraded the stock after a blockbuster week that brought positive news for the biotech’s heart drug, Amarin.

https://www.barrons.com/articles/amarin-stock-is-up-after-favorable-vote-on-fish-based-heart-drug-51573826088 https://www.barrons.com/articles/amarin-cardiovascular-vascepa-fish-drug-gets-thumbs-up-from-fda-committee-51573768700 https://www.barrons.com/articles/amarin-stock-is-up-after-favorable-vote-on-fish-based-heart-drug-51573826088 mailto:josh.nathan-kazis@barrons.com Amarin Stock Has Soared. Citi Thinks It’s Gone Far Enough. By Josh Nathan-Kazis Photograph by Louis Reed Citi Research downgraded Amarin stock on Monday.

After the biotech firm Amarin’s blockbuster week last week, in which the stock jumped 37% on news around the company’s cardiovascular drug Vascepa, analysts at Citi Research are downgrading the firm. They believe the medication’s promise is now priced in.

Citi Research analyst Joel Beatty downgraded Amarin to Neutral/High Risk from Buy/High Risk. He increased his price target on the stock to $27 from $23. Shares of Amarin (ticker: AMRN) closed Friday at $24.02.

“We believe Vascepa is an effective drug and anticipate sales accelerating significantly over the next year, however, we believe this is now already priced into the stock,” Beatty wrote.

The stock jump also reflects an expectation that the company could be acquired, he wrote.

Amarin didn’t immediately respond to a request for comment about the downgrade.

The back story. Shares of Amarin have soared 76.5% so far this year. The company sells a fish-based drug called Vascepa that currently is approved by the Food and Drug Administration to reduce triglyceride levels in certain patients. Last week, an FDA advisory committee voted unanimously to recommend that the FDA approve Vascepa to reduce the risk of cardiovascular events, including heart attack and stroke. The stock climbed on the news, though questions remain about how broad the label expansion will be.

What’s new. In Beatty’s note on Monday, the analyst wrote that his model assumes $3.2 billion in annual Vascepa sales by 2024, and that the drug “will reach multi-$B in peak sales.”

“We’re now modeling sales of $3.2B in 2024 (up from $2.7B previously), reflecting increased confidence in a label that will allow broad use and cost effectiveness that supports taking modest price increases in future years,” Beatty wrote.

But he said the sales expectations are already factored into the stock price.

“We see sales accelerating substantially over the next 12 months, however, we believe this is already priced into the stock,” Beatty wrote.

Beatty said he rates the company High Risk because of the nature of the biotech sector.

Looking forward. Investors, so far, don’t seem to be heeding Beatty’s warning. Shares of Amarin were up 3.7% in premarket trading on Monday.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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