Amarin Announces $400,000,000 Public Offering of American Depositary Shares
@KING WILL people are saying this means they are going it alone and a buyout is not gonna happen plus more dilution of the stock. This is crashing hard
Is a buyout really off the table?
A buyout is definitely not off the table. If anything, this capital raise removed any leverage potential buyers had in negotiations -- in effect, that Amarin didn't have the financial resources to realize Vascepa's full commercial potential. Amarin, in kind, can now demand top dollar for its hand or simply brush off these overtures from potential suitors. In the breath, a buyout probably isn't even in the best interests of long-term shareholders at this stage.
Amarin's shareholders would arguably be better served by a
co-promotional deal in the same vein as Pfizer's agreement with cancer diagnostic specialist
Exact Sciences . Such a deal would greatly bolster Vascepa's commercial reach through Pfizer's vast network, and perhaps entail an in-licensing deal of one or more of the pharma giant's early stage candidates. In that way, Amarin would be able to both capitalize on Vascepa's monstrous commercial potential and create deep value for its shareholders at the same time.
The key takeaway here is that investors shouldn't sweat this capital raise. Amarin has proven to be a winning play for biopharma investors and this capital raise only creates more avenues for value creation in the years to come. Lastly, there's no reason to believe that a capital raise has any bearing on possible buyout talks -- other than the fact that Amarin would now be negotiating from a position of strength.
Amarin: Is a Buyout Really Off the Table?