UPDATE: Citigroup Initiates Amarin at Buy on Vascepa Overhang Removal
Citigroup initiated coverage on Amarin (NASDAQ: AMRN) with a Buy rating and a $20 price target.
Citigroup commented, "The overhang from the delayed 3 vs. 5 year FDA market exclusivity decision for AMRN's cardiovascular drug, Vascepa, has pressured the company's valuation towards our view of a near “worst case” scenario. We believe the current risk/reward is favorable, viewing Vascepa to have >$1B commercial potential even if AMRN were to “go alone” and further upside if a large pharma partner ultimately became involved. We believe 5 yr exclusivity for Vascepa is on the table, and a strategic transaction is feasible even if not granted. The FDA's delay will likely force AMRN to begin building a sales force and this increases chances of requiring additional capital to do so."
Amarin closed at $11.49 on Monday.
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