Solid fourth-quarter and full-year results might be the catalyst to fuel further upside action in Amarin Corporation plc. (NASDAQ:AMRN) price action. The stock is up by more than 30% after plunging by more than 70% in 2020. The change of fortunes comes from initiating the regulatory review process for the company’s lead product Vascepa in China and Hong Kong.
Vascepa Revenue Growth
Management affirming that the company is well-positioned to further grows Vascepa revenue in the U.S while expanding internationally also continues to strengthen investor sentiments in the stock. According to Chief Executive Officer John F. Thero, Amarin is leading the pack in the creation of a new paradigm in preventive cardiovascular care beyond cholesterol management.
Similarly, the drug maker came out of the fourth quarter with record revenues of 167.3 million, representing 17% yearly. It also topped consensus estimates of $164.9 million. The record revenues at the back of the COVID-19 disruptions underscore the largely untapped market need for the lead product Vascepa
The company should also see further sales growth as some managed care companies have increased their coverage of Vascepa. Reports that the brand name version is relatively cheaper than the generic should also work to the company’s advantage in drawing in more sales.
International Expansion
Vascepa, a new indication for persistent cardiovascular risk, has been a game-changer for the company, which explains the company’s push to increase awareness and education. Positive opinion so far could help the company secure regulatory approval in Europe. The region presents an untapped opportunity for Amarin given the millions of people at risk of cardiovascular events such as heart attacks.
Amarin has also set sights on the Chinese market. The company has already inked a deal with a local partner that should help drive sales in Mainland China, Hong Kong, and Taiwan. The china region represents a significant market opportunity.
Amarin reported adjusted earnings of $16.4 million or $0.04 a share, an improvement from an adjusted income of $15.3 million reported a year earlier. It also topped consensus estimates of a net loss of $0.01 a share.