Amarin Corporation plc [NASDAQ: AMRN] is moving in pre-market trading today. The stock up by about 7% at the time of writing. The bullish sentiment around this stock is driven by the company’s revenue projections for 2019. It has announced a positive outlook for 2019, raising revenue projections to $420 million, up from earlier estimates of $350 million. The company is also looking to expand its sales staff to roughly 800 representatives. This expansion is driven by the company’s priority review for its designated new drug application for Vescepa. According to the company’s CEO, the company expects growth in revenues coming from Vescepa, as they promote its usage in the reduction of cardiovascular risks. If these marketing goals for this drug become a success, Vascepa Snda PDUFA could be a pioneer in the use of prescription drugs to reduce the risks of cardiovascular issues in people with high triglyceride levels.
If Amarin opens the day at its pre-market price level of $20.58, it will have completed a bullish reversal, by pushing above key short-term resistance at $19.86. This could see it trade in bullish territory in the day. Over and above its revenue outlook, there are a number of other factors that could help play a role in this stock’s price action in the day. The first one is the role of U.S markets. On Monday trading, markets closed in the red after factory numbers painted a picture of weakness in the global economy. If this bearish sentiment persists when U.S markets open, it could affect how individual stocks perform in the day. Conversely, if U.S markets open in the green, stocks such as AMRN could experience significant bullish price action in the day, due to their strong fundamentals and or technicals.
Another factor likely to play into its price action is the performance of biotech stocks. After a series of mergers and acquisitions, biotech stocks have performed quite well in the last few weeks. The increased bullish sentiment in these stocks could add to the momentum that AMRN has gained pre-market. It’s an interesting stock to keep an eye on in the day and I would like to see it break the $19.86 range and close above it.