Amarin Shares Drop 67% As Court Invalidates Its Heart Drug Patent For Vascepa

The shares of Amarin Corporation plc AMRN tanked in the after-hours session on Monday as the court ruled against its patent for heart treatment drug Vascepa.

What Happened

The United States District Court for the District of Nevada in Las Vegas ruled that six patents on Vascepa, which were all set to expire in 2030, are invalid, as earlier reported by Bloomberg.

This means that generic drug companies like Dr. Reddy's Laboratories Ltd. RDY and Hikma Pharmaceuticals plc HKMPY can create generic versions of the drug used to lower triglycerides levels.

Bloomberg noted that Vascepa accounted for almost all of Amarin's $429.8 million revenue in the financial year 2019.

The court upheld the generic drug makers' argument that versions of the fish oil used as the active ingredient in Vascepa have been used to lower triglycerides levels since the 1990s, like in GlaxoSmithKline plc's GSK Lovaza drug.

What's Next

Amarin CEO John Thero said in a statement that the company "strongly disagrees" with the  judgment and is considering appealing against the ruling in a higher court.

The Food and Drugs Administration hasn't yet approved any abbreviated new drug application for Vascepa, Amarin noted. If and when it does, the company will seek to prevent the launch of generic versions of the drug by filing a preliminary injunction till its appeal is heard.

"We believe we are favorably situated to obtain an injunction against generic launch pending appeal, subject to our posting a bond to secure generics' lost profits in the event that generics prevail on appeal," Thero added.

Price Action

Amarin's stock traded 67.08% lower at $4.47 per share in the after-hours session on Monday after closing the regular session 2.57% higher at $13.58.