In online stock trading and investing, you would realize that one promising product could alter the fortunes of a company's stock for the better and keep it soaring higher.
Amarin's Steep Rise in September
Here's the incredible case of a stock that vaulted by a massive 415% according to S&P Global Market Intelligence! We're talking about the Irish-based biotech company Amarin ($AMRN) that had this meteoric rise in the month of September. To put this into perspective, the S&P 500 only rose by 0.6% that month. And this month, the shares are continuing to march ahead and have already gained 16.5% as of October 8. The broader market slipped around 1% during this period.
Positive Study Results of Vascepa
Analyst Beth McKenna of Motley Fool attributes this growth to Amarin's release of the extremely positive results of a cardiovascular outcomes study of its drug Vascepa. Vascepa is a fish oil-derived drug containing the omega 3 fatty acid. The study involved evaluation of the drug’s capability to be used as an add-on to the statin therapy for patients having high levels of triglyceride, according to Motley Fool's George Budwell. The drug had already received approval from the FDA in 2016.
According to the study, Vascepa was found to reduce by 25% the risk of major cardiovascular events for patients who are already on a medication of statin drugs, when compared to those having a placebo. That brings in the evidence of hard data to convey how effective the drug is. That makes it easier for Amarin to get the drug's label expansion approved here in the US. The label expansion can enable Amarin to market the drug for patients having high levels of triglycerides though they are already on statin therapy.
More Exciting Announcements on the Way
For a stock that has been struggling for some time, this is unbelievably positive news. There could be more positive excitement when further details of the study are released by Amarin at the American Heart Association's 2018 Scientific Sessions on the 10th of November 2018 at Chicago.
With a $5.6 billion market cap, Amarin's robustly positive cardiovascular study results are rumored to make it attractive for a buyout by some major pharmaceutical or biotech company dealing with cardiovascular drugs.
Innovation Essential for Pharmaceutical Companies
For pharmaceutical companies, positive test and study results of their newly released drugs can really send their stock through the roof and make them attractive. However, not all drugs bring out positive results in tests and studies. That's why pharmaceutical and biotech companies need to keep the innovation drive always active and keep developing great drugs.
Not all factors for a stock's growth are noticed by the market always. You need to keep close tabs on not only stock movements but also crucial decisions made by companies that could potentially lift them significantly. Experience and an eye for detail help here. As far as the stock market and your trading account are concerned, the advanced free trading software provided by TradeZero, and its mobile version, can help you keep tabs. Get in touch with us at +1 954-944-3885 or email us at support@tradezero.co.
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