Amarin Corp Plc (AMRN)

[Durk 47]

Here is my read on the offering

1 Amrn submits sNDA Q1/19 and most likely receives formal approval in Q3/19. Big Pharma's position is we do not want to make our best and final offer until FDA officially approves.
2.As of 9-30 Amarin had $30M of short term and $83M of long term debt-$113M total and $81M of cash.After this offering, total cash will be $281M. However, in a complicated deal a few years back,Amrn sold the Vascepa patents to Pharmakon for $100M=/- with the right to buy them back for $150M+/- and I believe some payments have been made. This offering will give them the cash to buy back the patents which Big Pharma would insist upon prior to paying $15B+/-.
3. Amrn may well use some of the money to buy or build a mfr plant which will improve the margins and enhance the value to Big Pharma.
4. Two underwriters should add stability and support to the stock price once the secondary is complete.
5. This transaction would not be done without the support and approval of Baker Brothers-their largest shareholder and a successful fund focused on biotechs.
6. Bottom line, the buyout may be delayed a year, but the price will be higher. Agreed,Thero is not a charismatic sales guy, but he is a talented biotech exec.

Stay tuned