2021-05-12 04:53:54 | Amarin downgraded to Sell from Neutral at Goldman SachsGoldman Sachs analyst Paul Choi downgraded Amarin to Sell from Neutral with a price target of $5, down from $6. The stock in premarket trading is down 3% to $4.45. Generic entrants in the U.S. will limit Vascepa's growth ahead of the European launch, Choi tells investors in a research note. The analyst sees a "clear need" for Amarin to diversify away from Vascepa. Consensus estimates call for year-over-year growth in Vascepa sales despite the steady utilization of Hikma's generic Vascepa and the pending launch of Dr. Reddy's own generic product, says Choi. He expects both to increasingly erode Vascepa's market share in 2021 and beyond. Physicians overwhelmingly indicate plans to prescribe generic products, particularly given coverage and cost challenges associated with branded Vascepa, says the analyst, citing his conversations with them. Choi sees "increasing urgency" for Amarin to engage in more active business development to develop the pipeline that can be commercial-ready ahead of European loss of exclusivity in the early 2030s. |
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