Amarin Corporation plc. (ADR)
Shares of Amarin Corporation plc. (ADR)(NASDAQ:AMRN) rallied 4.56% after the biopharmaceutical company announced the signing of an exclusive agreement with HLS Therapeutics. Pursuant to the agreement, the two have agreed to register, commercialize and distribute Vascepa capsules in Canada. However, distribution of the pills in still subject to regulatory approval.
Monday’s rally pushed Amarin Corporation plc. (ADR)(NASDAQ:AMRN) stock to a key resistance level at the $3.43 a share mark. However, the stock continues to trade in a strong downtrend after plunging from highs of $4.40 a share in July.
A close above the $3.50 a share could result in investors’ pushing the stock to the $3.80 mark, which is another key resistance level. It awaits to be seen if the collaboration agreement with HLS Therapeutics is the catalyst.
Under the terms of the agreement, HLS is to be responsible for regulatory and commercialization activities, pertaining to the highly pure Omega 3 fatty acid product. Amarin Corporation plc. (ADR)(NASDAQ:AMRN) is to provide assistance towards local filling as well as supplying finished product and maintaining the intellectual product. The company is also to continue the development and funding of REDUCE-IT program.
Amarin Corporation plc. (ADR)(NASDAQ:AMRN) is entitled to $65 million in payments made up of $5 million in nonrefundable upfront payments and $60 million in development, regulatory, and sale-based milestones. HLS Therapeutics is also to pay the company tiered double-digit royalties on net sales of Vascepa in Canada
“We are excited to enter into a collaboration with HLS to seek regulatory approval and commercialize Vascepa in Canada. The proven track record of HLS’s leadership in commercializing pharmaceutical products in Canada, along with our shared vision and commitment, bestow confidence that we will provide Vascepa as a treatment option for millions of Canadians,” said CEO John F. Thero.
Vascepa is a single molecule prescription product made up of omega-3 acid. Amarin owns a number of patents pertaining to the unique clinical profile of the product, which has been found to be effective in lowering triglyceride levels in relevant patient populations. The product is approved in the U.S as an adjunct to diet for reducing triglyceride levels in patients with hypertriglyceridemia. However, it is not approved in Canada.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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