Shares of Amarin dropped 70.2% as of 11:40 A.M. Eastern. The drastic decline came after the U.S. District Court for the District of Nevada ruled in favor of generic-drug companies and invalidated Amarin’s patent is for Vascepa, which was approved by the FDA to treat triglyceride levels and reduce the risk of cardiovascular problems.
Amarin’s only approved drug is Vascepa, and the introduction of generic medicines is a significant blow to the company, which just started promoting Vascepa as a drug treatment for reducing triglyceride levels. That said, the ruling does not apply internationally, but generic drugs would hurt the company’s future growth in America.
This news comes after the coronavirus pandemic is putting a lot of strain on the healthcare industry. On March 15, following in the footsteps of other drugmakers, Amazon announced they were suspending sales visits to physicians. But, it fails in comparison to the court ruling allowing for more competition in the market.
In a statement, the company said they “strongly disagree with the ruling and will vigorously pursue all available remedies.” Amarin plans on appealing the decision and expects Amarin to file a preliminary injunction if the FDA approves abbreviated new drug applications for generics. Overall, it illustrates the difficulties for drugmakers face for building a business around one approved drug.
In relevant news, other businesses are feeling the pinch during the Coronavirus. A new study has found music streams have decreased. According to analytics provider Alpha Data, NME says streams in the United States dropped 7.6 percent during the week of March 13 to March 19, which is around the time self-isolation became a national battle cry to combat the Coronavirus. Meanwhile, digital song sales dropped 10.7 percent, digital album sales fell by 12.4 percent, and physical album sales dropped to 27.6 percent. The physical album sales drop is not too surprising as many record stores shut down, and Amazon has put selling CDs and vinyl records on hiatus.