Delay in finding partner hits share value of Amarin biotech firm

SHARES IN Irish biotech group Amarin dipped after chief executive Joe Zakrzewski said the company may not reach an agreement with a suitor until 2012.

Amarin expects to file for US regulatory approval of the cholesterol medicine AMR101 in the next quarter and is in talks about potential licenses or a buyout.

As for a possible agreement, “we could do that today” or when the regulatory filing occurs, Mr Zakrzewski said on Friday.

“We could do it through the middle of next year” when the drug’s potential is clearer, he said. “If you offer me $15 (€10) a share, I am waiting. If you offer $30, $40, $100 it’s a different story. There is a lot that can happen and the situation is very fluid.”

Amarin, with no products on the market, almost doubled in value to $17.10 per US depositary receipt on April 18th after saying AMR101 met the goal of reducing levels of fatty chemicals in the blood in a late-stage study.

The stock has declined since then as investors tire of waiting for a partnership or acquisition, said Duane Nash, an analyst with Wedbush Securities in San Francisco.

“I think it’s going to happen further off, late this year or early next year, as we are not seeing a tremendous amount of partnership and MA [merger and acquisition] activity that we saw a few years ago,” Mr Nash said.

Following, Mr Zakrzewski’s comments, the shares dropped over 15 per cent before rallying to close the day 4.2 per cent off at $15.63.

Mr Zakrzewski confirmed Amarin has retained a financial adviser, although he would not reveal the adviser’s identity.

It may be more appropriate to wait until after filing for regulatory approval to seal a deal or to even postpone a decision to next year when the chances of the drug being approved are better known, Mr Zakrzewski said.

Amarin would only consider a licensing agreement for sales outside the US while keeping the US market for itself, he said. AMR101, once approved, would compete with GlaxoSmithKline’s Lovaza in the US. Amarin’s purified Omega-3 fish oil is more effective in certain cases and did not increase another risk factor for heart disease – low-density lipoprotein – which is an issue for Lovaza.

Lovaza generated sales of $861 million last year. – (Bloomberg)