On the subject of Elan shareholdings.
Amarin Corp Dn 15%; Co. Says Large Holders Taking Profits
By Victoria Marcinkowski
Of DOW JONES NEWSWIRES
NEW YORK -- American depositary shares of Amarin Corp. (AMRN) plunged 15% Wednesday as a number of large shareholders decided it was time to take profits.
"Some of our large holders today decided it was time to move on," said Mike Coffee, Amarin's president and chief operating officer.
Coffee said he did not know who was selling. "A lot of people have made a lot of profits and are moving on," he said.
Prior to Wednesday's drop, Amarin's Nasdaq-listed ADRs had more than quadrupled since January.
Because the London-based specialty pharmaceutical company has a small float, Coffee said, its stock reacts strongly to any increase in selling or buying.
The float, or the number of shares available for trading by the public, is 3.6 million compared with the company's some 7 million shares outstanding.
Amarin's main partner, the Irish drug maker Elan Corp. (ELN), owns about 9% of its undiluted and 47% of diluted shares. A British group of venture capitalists, who carried out a private placement for Amarin in July 2000, own another large stake.
A portfolio manager with one of Amarin's main U.S. investors, Kennedy Capital Management with 93,900 shares, said U.K. venture capitalists are likely the ones currently selling.
"I think three-fourths of today's volume is driven by European holders," said Richard Sinise, portfolio manager with Kennedy Capital.
Sinise said Kennedy Capital has not sold any of its Amarin shares.
"We like the company and expect to see earnings of $1.50 a share next year," Sinise said.
On October 29, Amarin reported third-quarter earnings of $3.1 million, or 28 cents a share, on revenue of $15.6 million. Most of the company's sales come from Permex, a treatment for Parkinson's disease.
Other large Amarin holders could not immediately be reached for comment.
Amarin's depositary shares recently traded at $20.39, down $4.14 or 16.8%, on volume of 770,000 shares. Average daily volume is 197,000 shares. |
