Things could be getting a whole lot fishier in China thanks to Amarin (NASDAQ:AMRN). Late on Thursday, the biotech company shared promising results from a Phase 3 trial of its Vascepa drug. What does that mean for investors? And what else do you need to know about AMRN stock?
To start, what exactly is Amarin? Well, the pharmaceutical and biotech firm specializes in developing treatments for cardiovascular disease. Investors should note that although Amarin has its headquarters in Ireland, it focuses on treating individuals in the U.S. Importantly, this fact is also why news Thursday is so exciting.
AMRN stock is likely not unfamiliar to all investors. That is because its leading drug, Vascepa, has long generated buzz on Wall Street. So what is Vascepa? The therapy uses icosapent ethyl, essentially a prescription-grade fish oil, to reduce the risk of heart attack and stroke. Patients take Vascepa along with other medications like cholesterol-lowering statins. In combination, this can help lower triglyceride levels and protect individuals from having heart issues down the line.
So what is the big deal? Well, Amarin holds approval from the U.S. Food and Drug Administration for the use of Vascepa in the U.S. It is also continuing to expand, and gaining an edge against rivals AstraZeneca (NASDAQ:AZN) and Acasti Pharma (NASDAQ:ACST). On Thursday, it took another step in the right direction.
The big news is that Amarin, along with partner Edding, are running a Phase 3 trial of Vascepa in mainland China. Yesterday, the two companies shared positive and statistically significant initial results from that trial. Importantly, it looks like Vascepa led to a significantly greater reduction in triglyceride levels compared to the placebo. Together, the two companies will work to receive appropriate approvals to begin marketing Vascepa in China.
AMRN Stock and New Phase 3 Trials
Clearly, this is exciting news. Investors often celebrate biotech companies for making advancements in clinical trials and approaching drug authorization. Also importantly for Amarin, cardiovascular disease is the leading cause of death in China. This means there should be a fairly large market for Amarin to enter along with Edding, which has a reputation for being a leading pharmaceutical company in China.
Additionally, this has been a hard year for many biotech companies. Earlier stay-at-home orders and non-essential business closures brought clinical trials to a halt. Much of the attention on the space turned to novel coronavirus vaccines and treatments. However, many believe that biotech stocks will be dominant forces in the market for years to come.
Will Amarin be one of these leaders? Investors are treating it like one today. Shares are up almost 6% in intraday trading thanks to its positive results.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.