Did Amarin Executives Trade Millions On Privileged Information?
Before shares of Amarin Corporation Plc. (NASDAQ:AMRN) dropped sharply on Friday, July 27, company officials filed millions of dollars' worth of insider trades with the SEC, begging the question: Were those trades made on information withheld from the public?
According to Bloomberg, the pharmaceutical company's shares fell after approval of the company's first product, a treatment for high levels of blood fat, included limits on its use, which likely turned investors off to the drug.
On July 26, the U.S. Food and Drug Administration approved Vascepa for treatment of high triglycerides, but Jon Lecroy, an MKM Partners analyst, stated that the share plunge after the approval is part of a wider trend in which pharmaceuticals are being approved with several limitations.
"They didn’t get any of the Anchor trial data in the label, for patients with high triglycerides, which is a bigger patient population than the Marine population they were approved for," Lecroy told the media outlet.
Considering that company insiders sold $20.66 million in shares ranging from $11.97 to $15.01 each, it appears they may have been privy to the limitations on the drug.
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