Amarin Takes on More Debt, Shares Suffer

At the end of the September quarter, Amarin held cash and equivalents of just over $215 million and long-term debt of about $222 million. The cash from the Pharmakon deal will be paid back over three and half years, beginning in November 2013 and continuing through 2017.

Amarin simply did not have the wherewithal to launch its new drug on its own and needed a partner. Now that it has got one, investors are squeamish about the company’s ability to market Vascepa successfully. The company is still exploring strategic options, including a possible sale of the company. Not good for existing investors.

Shares are down nearly 20% in premarket trading today, at $9.58 in a 52-week range of $5.99 to $15.96. Short interest in the stock totals nearly 20 million shares. There are some happy folks out there today.

Paul Ausick