The other competitor on the scene is Abbott Laboratories (NYSE:ABT). Abbott Laboratories (NYSE:ABT) has a drug called Tricor, which is used for lowering cholesterol levels in patients at risk of cardiovascular disease. The drug reduces LDL and triglycerides level, while increasing HDL levels. Another one of its drugs called Trilipix is also used for treatment of high cholesterol and high triglyceride levels.
The combined revenue of Tricor and Trilipix was about $1.7 billion in 2011. However, last year, the company was caught in a lawsuit involving illegal promotion of their drug Tricor. The lawsuit accused the company of promoting Tricor’s off-label use for prevention of cardiac health risks in diabetic patients.
Additionally, the company is facing generic competition from the likes of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and has in fact entered into a licensing agreement with the company recently. Indian pharmaceuticals company, Lupin, also launched a Tricor generic in the U.S. last year in November, and is likely to be followed by Ranbaxy and Wockhardt.
No doubt Amarin’s competitors are huge, but the company’s product has its current advantages over the medications of the two giants for this highly profitable market of hypertriglyceridemia. Amarin Corporation plc (ADR) (NASDAQ:AMRN) needs to heavily market its product at this opportune time and establish itself as a strong player in the market.
Amarin’s product is coming at a time when its bigger competitors are facing a rough patch with generic versions entering into the market. Amarin should tease out every single differentiating factor between its Vascepa and the other major drugs on the market, and ensure patients and physicians are well educated regarding them.
One factor that will be very important in the long-term success of this drug in the market, however, is the patent exclusivity period that it will be able to get. For this reason, the NCE decision is eagerly awaited.
Outlook for Amarin
Analysts have estimate a rise in the revenue for the next quarter by about $6.11 million and for the next year by $223.17 million. Amarin Corporation plc (ADR) (NASDAQ:AMRN)’s growth estimate for the next year is 65.2%, while that of the S&P 500 is 12.9%. The growth estimate comparisons for the next five years are 74% for Amarin Corporation plc (ADR) (NASDAQ:AMRN), 12.54% for the industry, and 8.98% for the S&P 500. So, we can see that the stock is undervalued currently and is a good investment option.
Amarin Corporation plc (ADR) (NASDAQ:AMRN) has been taking positive steps like implementing early physician awareness and speaker programs, as well as implementing a co-pay reduction program that offers Vascepa to patients for a co-pay cost equivalent to competitors. Marketing campaigns are also underway to support the sales force and educate doctors and patients about the new drug. Looks like Amarin is headed in the right way with Vascepa and is likely to reap benefits soon.
The article Can This New Drug Win Against Established Competitors? originally appeared on Fool.com and is written by Shas Dey.
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