Amarin Stock Soars on Hints of Patent OK
Amarin Stock Soars on Hints of Patent OK [the Day, New London, Conn.]
From Day, The (New London, CT) (June 28, 2012)
June 28--GROTON -- Shares of Amarin Corp. plc took a wild ride upward Wednesday after the U.S. Patent and Trademark Office issued a notice indicating that a key set of patents for the company’s fish oil-derived medication AMR101 would likely be approved.
Amarin, which is technically based in Ireland but has its largest global presence on Bridge Street, saw its shares rise 14 percent in pre-market trading Wednesday before settling at $14.29. That’s a nearly 9 percent rise from Tuesday’s price, and a more than 40 percent increase over the past few months.
According to thestreet.com, Amarin received a "Reasons for Allowance" notice Tuesday for its closely watched 899 patent, which would provide intellectual-property protection through 2030 for the company’s experimental heart treatment. Amarin’s application had previously been turned aside by the patent office as its sought additional information on the pill’s method of use.
"A ‘Reasons for Allowance’ notice is typically filed when patent examiners are satisfied with a patent application’s novel claims," according to an article in thestreet.com by Adam Feuerstein. "An approval of the patent typically follows."
"A favorable patent ruling could be in the cards," agreed Sean Williams of The Motley Fool, a popular investing website.
In addition to its notice about what Leerink Swann analysts called "the single most-watched patent on Wall Street," the federal agency also issued indications that three other AMR101-related patents would be approved.
AMR101 helps patients reduce the levels of fat in their blood, which is a risk factor for heart attacks. Currently, only GlaxoSmithKline’s billion-dollar medication Lovaza targets a similar population.
"The strengthened intellectual property protection for AMR101 boosts the value of the drug and may also make it more attractive to potential Big Pharma acquirers," according to thestreet.com.
The Motley Fool agreed that the patent notice was "great news for Amarin," but called the share-price increase "largely speculative."
The next big step -- a hurdle not many companies pass -- is final approval of AMR101 by the U.S. Food and Drug Administration. The FDA has promised a decision by July 26.
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Posted: June 2012