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Biotech company Amarin (NASDAQ:AMRN) has seen its stock make steady progress over the course of the past two weeks and during the period, it has delivered gains of 50%. This week the company made a significant announcement with regards to its product Vascepa and it is believed that it was one of the triggers for the rally.

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Vascepa Announcement

On Thursday, Amarin announced that its product Vascepa has proven to have been effective in making considerable in ischemic events in people who have prior percutaneous coronary intervention (PCI). The findings were made possible from an analysis of a subgroup that had been part of the product’s REDUCE-IT study. 

It was revealed that, when compared to placebo, Vascepa helped in reducing the number of primary and major ischemic events in patients with a track record of PCI by as much as 34% and 39% respectively.

In addition to that, the medicine also helped in reducing the possibilities of cardiovascular fatality, heart attacks, and strokes by as much as 34%. It goes without saying that these are encouraging results and it is no surprise that investors piled on to the stock after the announcement.

Prospects of Vascepa

While the developments with regards to Vascepa are definitely promising, it is also necessary for investors to figure out if there is a big enough market for the product. Vascepa helps in the reduction of triglycerides and there lies the appeal of the product. Later on, the company also proved beyond doubt that the reduction in triglycerides helps in limiting the risk of heart attacks.

According to the REDUCE-IT trial, Vascepa can help in reducing the risk of heart attacks by as much as 31% and stroke by 28%. Hence, the promise of the medicine could be huge and there are other factors that need to be considered as well.

Unlike many other companies, the company is also cash-rich at this point and boasts of a cash balance of as much as $500 million. On top of that, Vascepa has already managed to clock $500 million in yearly sales.

An SVB Leerink analyst recently estimated that the peak yearly sales for the product can hit as much as $2.8 billion annually. Amarin also has patent protections in place in Europe and Asia, both of which are major markets that can help the company in driving significant sales. Investors could consider keeping an eye on the Amarin stock.

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