Insider Activity Pushes Shares Of Amarin Corporation plc (ADR) (NASDAQ:AMRN) Higher

Posted by Lynn Eisler November 20, 2013 0 Comment 2341 views

The stock of Amarin Corporation plc (ADR) (NASDAQ:AMRN) surged approximately 25% during Tuesday’s trade, backed by the news of insider’s purchase. Notably the company’s SEC filing revealed the purchase of 50,777 shares Amarin’s common stock by the Chief Executive Officer, Joseph S. Zakrzewski on November 18, 2013, at an average price of $1.54. The total transaction was valued at $78,196.

Though the insider’s investment could notably an encouraging sign for investors as the purchase by CEO signals his optimistic outlook for Amarin Corporation plc (ADR) (NASDAQ:AMRN) and its lead drug candidate Vascepa, the surge in stock price could just be momentary.

Fate of Vascepa

Amarin Corporation plc (ADR) (NASDAQ:AMRN)’s lead drug, Vascepa has been approved by the USFDA for the treatment of severe hypertriglyceridemia. However, during last month the USFDA rejected its approval for another indication related to ANCHOR trial, following which the company stock plummeted approximately 75%. Now the company needs to carry a cardiovascular safety trial which may cost a lot to company and keeping its Vascepa related developments at halt at least until 2017.

The Class Action Lawsuit

Following the USFDA’s decision and the concerns raised in its briefing document released on October 11, 2013; many law firms across the nation launched the class action lawsuit against Amarin Corporation plc (ADR) (NASDAQ:AMRN). The lawsuit alleged Amarin for potentially misleading or materially false statements regarding its business in general as well as the prospects for FDA approval of Vascepa related to ANCHOR trial.

Many law firms including Faruqi & Faruqi, LLP; Levi & Korsinsky, LLP; and Wolf Popper LLP among others are investigating the matter.

The Related Story

Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX), alike Amarin Corporation plc (ADR) (NASDAQ:AMRN), is also facing class action law suit for allegedly not reporting that a competitor company is manufacturing a drug similar to its investigational drug Firdapse, for the treatment of LEMS and distributing free to patients for over two decades.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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