AMARIN (AMRN) is an emerging specialty pharmaceutical company that markets and sells U.S. brand name prescription and OTC drugs to targeted primary care and select specialty physicians. The company recently purchased 15 FDA approved pharmaceutical products from Elan Corporation, and plans on a focused their marketing effort to increase the penetration of these drugs in the U.S.
By acquiring approved products in U.S. markets that are sold to niche segments, then concentrating efforts on these products to expand the use of such products, AMRN is undertaking an Elan-like strategy was used in the early 1990's in the drug delivery sector. Using that strategy Elan became one of the best drug delivery firms in the world, and has since diversified into other areas as it has grown.
Selling the money losing drug delivery products, AMRN will look to acquire additional niche products that have already been approved to market in the near future. Ongoing operations are projected to be profitable in the current fiscal year and going forward.
Management talent now at AMRN from major biotech companies such as Elan Corporation (who will own 72% of AMRN if they exercise outstanding warrants) will make this company a viable enterprise. A microcap (around $35 million if Elan exercises their warrants), fair value is well above current market prices. They are part of our Model Portfolio at members.aol.com. Opinions or comments? |
