Amarin Corporation plc (NASDAQ: AMRN), a pharmaceutical company, gained more than 9% at $4.86 on August 5. Share growth was driven by the release of the quarterly report, which showed strong revenue growth despite growing competition.
Anmarin’s second-quarter revenue was $154.5 million, up 14% year over year. As part of its marketing strategy, Vascepa, AMRN’s flagship fish oil product, is doing very well. It is positioned as preventive medicine for cardiovascular diseases in a particular group of patients. Vascepa has been approved for sale in the USA and in European countries.
In the past, investors were optimistic about Vascepa’s prospects, but AMRN stock lost the patent protection for its drug last year, signaling the emergence of competitors and a sharp decline in sales. However, this has not happened yet.
Furthermore, Amarin Corporation plc (AMRN)’s profit increased due to strong sales in the second quarter. In comparison with the previous year’s loss of $16.1 million, the profit was $6.2 million. Despite the loss of patent protection and the availability of generic drugs, according to Symphony Health Solutions, AMRN still holds 89% of the market share for prophylactic fish oil-based drugs. Amarin Corporation plc (AMRN) lost protection only in the United States, while Vascepa remains unique in other markets, for example, European patents expire no earlier than 2039.
Amarin Corporation plc (AMRN) plans to introduce Vascepa in the UK and Germany this year. It is likely that Amarin’s efforts in the European market will help protect the company from possible declines in US sales following the loss of patent protection, which resulted in generics being offered at a lower price.