Replies to post #121804 on Amarin Corp Plc (AMRN)

[biowreck]

So basically they only "flashed" a signal that as investors we should all be wary of...and that is the risk of failure. That's pretty much the risk in biotech anyways....and then of course the wild card...FDA

[oneragman]

Tas,
I agree they are cautiously optimistic, but it really was necessary. They have less than $70M cash and are not cash flow positive. Not counting RI expenses and loan payments is not reality today...that's the future that they are trying to sell to investors. They have a lot of expenses coming up in completing RI, adding inventory and expanding the sales force. Fast forward to July...how low should the cash balance be allowed to go with a readout days away? $40M, maybe less. They have a fiduciary responsibility to the long term viability of the company and must plan for a failure as well as success, and in both scenarios, a raise was prudent. The only concern on part is why did BB not take on some shares. Maybe they will after the fact, but I would have loved to see them take a piece of the action.

[sts66]

What this offering says it that AMRN management, like AVII, are "cautiously optimistic". They believe it is possible -- not theoretically, but practically -- that R-IT will lay an egg.

Of course it's a possibility that R-IT will fail - it's also possible I'll get hit by a meteor when I go outside to get my newspaper in the morning. But you don't put out a PR saying what they did below if they believe R-IT is going to fail - especially the build-up of inventory, plus that they're going to raise awareness of V, and likely EPA's MOA in the medical profession in advance to increase sales at a faster rate when results are out - that's just smart planning IMO:

Amarin intends to use the net proceeds from the offering to expand medical education and market awareness initiatives, including, in advance of REDUCE-IT results being known, pilot testing of new promotional initiatives for potential broader application following REDUCE-IT results, to increase its inventory balances for incremental inventory build prior to REDUCE-IT results