The last resort for the company would be to build out the sales forces in Europe and the U.S. Instead, it would just collect royalties, similar to Innoviva, where Sarissa has a 13D filing and board seats. This way, Amarin does not have to spend money on a sales team and infrastructure. The second-best option for Amarin would be to partner with another company that could distribute the drug. ![]() Amarin has a star drug and would be a prime takeover target for Big Pharma. The Medicines Company was acquired by Novartis for $9.7 billion despite having no revenue (versus $600 million for Amarin) and no FDA approval at the time (Amarin has FDA and EU approval). This is what The Medicines Company, also with a cholesterol-lowering drug, did just seven months after Sarissa filed a 13D there. The easiest thing for the company to do would be to sell itself to a strategic investor that already has a full sales infrastructure and team around the world. There are clearly more efficient ways to monetize this asset. However, the company's present plan would require spending hundreds of millions of dollars on a European sales team in addition to the U.S. ![]() Moreover, the company does have patent protection from generics in the EU, so they can launch there with no generic competition and should be able to generate significant revenue outside of the United States. As an example, even though Lipitor's patent expired in 2011, it still generates approximately $2 billion in U.S. Further, Vascepa is still a good brand, so the company should be able to compete in the United States and grow that revenue back with a fuller sales team. This revenue should decrease over the next few years as generic competition increases, but the drug is not easy to manufacture due to its specialized formula and supply constraint. Despite this and even with generic competition, it has still been able to achieve $600 million of revenue in the U.S. What's Happening?Īs a result of the court ruling, the company scaled back the launch of Vascepa in the United States and reduced the size of its sales force. There is also Ariad Pharmaceuticals Inc., which was acquired by Takeda Pharmaceutical, giving Sarissa a 529.39% 13D return versus 32.47% for the S&P 500 over the same period. Most notably, there is The Medicines Company, which was acquired by Novartis International AG, giving Sarissa a 138.43% 13D return versus 16.40% for the S&P 500 over the same period. Sarissa has been involved with multiple health-care companies that have been acquired. He also has a rare combination of analytical skills in this sector, activist skills, and experience. Denner was the lead in Icahn's investments in companies like Biogen, Amylin, Genzyme, MedImmune and ImClone and has sat on the boards of ImClone, Amylin, Biogen, Enzon and Adventrx Pharmaceuticals. ![]() It was founded in May 2013 by Alex Denner, former senior managing director of Icahn Capital. Personal Loans for 670 Credit Score or LowerĪctivist Commentary: Sarissa Capital Management is an activist investor focused on the health-care sector. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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