Amarin Corp Plc (AMRN)

[rfj1862]

Cost savings from preventing 30% of nonfatal strokes and MIs will outweigh costs of the drug by an enormous amount.

Sorry no it won't. Think of it this way: Even in an untreated population only a small proportion will suffer a nonfatal stroke or MI.

So there's high costs for a few patients, but the costs for Vascepa are for every patient.

In general, the threshold for something to be considered cost-effective is $50,000 per quality-adjusted life year (QALY). Vascepa will be far, far below that threshold. But it's not going to save costs overall for the healthcare system.