Despite the overall turmoil and bloodbath in the market, there are some corners that have been largely unscathed from the selloff. One of the sectors that remain promising at this point is biotech, and investors could consider having a look at some of the promising biotech stocks. One of the biotech stocks that investors could consider at this point is that of Amarin Corporation plc (NASDAQ:AMRN).
The company is involved in producing only one product, Vascepa, which is an omega-three treatment. In 2019, the product got a label expansion as well that took its potential annual sales to $2 billion.
However, this past March, a United States district court removed the patent protections in place for Vascepa, and the stock price nosedived. That being said, the stock has rallied since mid-March after speculation grew that the ruling is set to be overturned.
That restores the consensus about the potential blockbuster status of the product. Experts believe that the stock price could rally by as much as 70% and reach its earlier levels. However, in the event of a failure with regards to the appeal, AMRN stock price could hit $8 a share, and hence, even a failure might not be particularly bad news for the stock.
Earlier on in April, the company announced its financial results for the 1st quarter. The most important take away was the fact that Vascepa not only generated impressive sales but also managed to beat analysts’ estimates. The total sales generated in the quarter stood at $150 million, and that was substantially higher than analysts’ estimates of $130 million.
Even more importantly, Amarin maintained its full-year financial projections of revenues in the range of $650 million and $700 million. This is particularly important considering the fact that many of the companies have been withdrawing their annual projections in light of the coronavirus pandemic. Investors could keep an eye on AMRN stock over the coming days.