Drug Trial Concerns Weigh on Amarin Stock

Analysts are still in favor of Amarin, though

Managing Editor
Nov 12, 2018 at 10:04 AM
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The shares of Amarin Corporation (NASDAQ:AMRN) are down 10.6% to trade at $18.82 this morning, after an update on the pharmaceutical name's heart disease drug Vascepa. Data from a clinical trial showed the drug was effective in reducing cardiovascular risks, but some investors have suggested the placebo used in the study may have exaggerated the positive effects of the treatment. 

Regardless, AMRN shares got a price-target hike to $51 from $31 at H.C. Wainwright, and Jefferies deemed the trial results "strong" despite the debate about the placebo. Analysts on the whole are bullish on the security. Of the five brokerages covering the stock, four rate it a "buy" or better, with not a single "sell" to be found. In addition, the security's average 12-month price target of $34.80 is an 87% premium to its current perch.

On the other hand, almost 12% of the total float is held by short sellers. Of course, these bears will need to remain idle today, since the security has landed on the short-sale restricted list (SSR).

On the charts, Amarin stock has been a big winner this year, boasting a 424% lead as of Friday's close. The shares gapped higher back in late September thanks to upbeat data from Vascepa, and nabbed an 11-year high of $23.33 last Tuesday.

 

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