Amarin raises guidance after FDA approves Vascepa
Amarin (AMRN) shares rallied almost 5% in intraday trading on Friday before they were halted, news pending. After the market closed, the FDA announced it approved the use of Vascepa as an adjunctive therapy to reduce the risk of cardiovascular events among adults with elevated triglyceride levels of 150 milligrams per deciliter or higher. The statement added that Vascepa was the first FDA approved drug to reduce cardiovascular risk among patients with elevated triglyceride levels as an add-on to maximally tolerated statin therapy. Shortly afterward, Amarin confirmed the FDA announcement, raised its FY19 revenue guidance, and gave FY20 revenue guidance. The company raised its FY19 revenue view to $410M-$425M from $380M-$420M, against a consensus of $410.25M, and gave FY20 revenue guidance of $650M-$700M, against a consensus of $654.55M. The company said, "Amarin is providing this projected revenue guidance for 2020 and has based its projection on a number of factors, including, but not limited to, expectations on market acceptance of the newly expanded label for Vascepa and current plans for expanded promotion. Vascepa revenues are anticipated to continue to increase in 2020, accompanied by quarterly industry variability, including recurring seasonal factors, particularly in the first quarter... Beyond 2020, Amarin believes that Vascepa total net revenue will grow to reach multiple billions of dollars. "