Damn this sucks at the moment for Amarin. This is why it's so tricky to trade the news instead of "buy the rumor sell the news" because people who got in up to about $21 had the option to take profits off the table while people who bought at $23 and above is now forced to either average down or hold the bag in hopes of it rising again. Now that it's approved, the question now becomes how will the market price it.
A lot of investors look at the stock price to tell if its expensive or not, but its really the market cap that they should be paying attention to. If we use 2020 projections of let's say $700,000,000 that means we are currently trading at around 12× earnings because the current market cap is $8.21 billion. If we use the street low of $8 a share that means it'll be trading at 4× earnings. They usually say 10× earnings is a good price to pay for a good business.
But an important question to ask is what makes it too expensive fundamentally and how much is big pharma willing to pay if a buyout occurs. But one very overlooked but maybe not too farfetched is Amarin buying Acasti, Amarin did a offering some time ago and they said it would be for Research and development and also strategic acquisitions. Amarin is already the biggest player in the Omega 3 space which helps treat the number 1 killer of Americans . If they bought Acasti they would be hands down the only player in the O3 space, nobody would be able to compete.
So in summary there is long term value in Amarin despite the sell off whether they get bought out, go it alone and keep all the profit or merge with Acasti and be the Thanos of the O3 space.
