Another sad and very frustrating day for all of us.
Now it's time for Amarin to strategically decide what is the best route to maximize as much revenue in the US. They know they have the Rest of the World in their hip pocket with no possibility of generic threat or litigation.
This to anyone that has years of Pharma like me or just has an opinion.
Amarin does the following:
1. Begins negotiations with the generics for a strategic agreement to become the sole manufacture of the drug for the generics companies Authorized generic. Remember the manufacturing process to make Vascepa is very challenging an expensive. We also have the supply chain in our favor and the pricing is very competitive with our brand.
2. This will allow Hikma and Ready to capitalize on the current and future research of the drug including potential new indications.
3. It will allow the generics to maximize the revenue from all indications without a lot of competition. Amarin's sales force would be out their promoting and building the market place
4. Amarin could still make several hundred million in this type of agreement in the US which is better than what they would make fighting all of the generics.
5.This model has become popular in the pharma industry over the past few years with very similar situations that Amarin is currently in.
Go back review the drug Adderall ER which was a billion dollar brand until it lost its Appeals Case but then negotiated a manufacturing agreement with the generic company because of how difficult and costly it was to manufacture Adderall ER
6. Amarin's situation is errily similar to the situation a few years back with Adderall SR. Shire still generated annually over 6 hundred million a year manufacturing the authorized generic for the generic company for several years after losing the appeals case.
7. Finally, why did the appeals court come back with their decision less than 24 hours after the Oral arguments?
We've been told their decision would be announced late this year or early next year. This is unheard of by most accounts.
Could it be that both sides asked the court to rule quickly so both sides could begin to quickly negotiate in earnest?
It's seriously not out of the realm of possibility based on what we all know about manufacturing Vascepa, the amount of supply available, low profit margins for the generic companies currently, market not ripe or developed at all (generics do not have sales forces)and allowing both sides to win and maximize value of the drug. They need each other.
I would relish to hear some thoughts on the above strategy.
