The private pharmaceutical company Eddingpharm will pay Amarin Corp (AMRN) $15 million for rights to develop and commercialize Amarin’s prescription-grade fish oil pill, Vascepa, in China, Hong Kong, and other Asian territories.
With 174 million shares out (in this case, ADRs, 196 million on a fully diluted basis), the $15 million payment from Eddingpharm is worth $0.08 per AMRN share. AMRN was up 15% ($0.20) in early trading, to $1.60.
Eddingpharm is entirely responsible for development and commercialization activities – and expenses – in the territory, though Amarin will later be responsible for supplying finished product. The deal includes potential milestone payments tied to the development and regulatory process of up to $154.0 million, on top of the $15 million received upfront. Eddingpharm will also pay Amarin double-digit royalties on sales of Vascepa in the territory.
Vascepa is already approved in the U.S. as an adjunct to diet to reduce triglycerides in adult patients with severe (≥500 mg/dL) hypertriglyceridemia. Amarin has fought a long battle to get Vascepa approved in the much larger “ANCHOR” indication, patients with high triglycerides (≥200 mg/dL and < 500 mg/dL) despite being on statin therapy. Thus far, it appears the FDA won’t approve Vascepa for this broader (and larger) indication without data from an ongoing cardiovascular outcomes study, called REDUCE-IT. Amarin anticipates an interim analysis of REDUCE-IT at 60% of targeted events (Major Adverse Cardiovascular Events) in 2016, but the study won’t be fully complete until 2017.
Vascepa sales have disappointed analysts and investors since its launch in early 2013, and the stock has lost 99% of its value since a 1993 public listing.
