Ebb & Flow

Armed with two Special Protocol Agreements from FDA, Amarin Corp.(NASDAQ:AMRN) has been able to resurrect its fortunes by convincing investors that a compound that disappointed in its original indication of Huntington's disease deserves a second chance.

Last week, Amarin raised $70 million in an oversubscribed VIPE. The money will allow it to run two Phase III trials of AMR101 ethyl-eicosapentaenoic acid (ethyl-EPA) in patients with very high triglyceride levels and mixed dyslipidemia through to an NDA filing.

The Irish company raised $30 million last year in the first tranche of a $60 million financing. In July, it decided to increase the second tranche to $55 million, but then expanded the deal to include new investors.

"We looked at what we thought we would need to put into the clinical programs to maximize the label and so increase the company's trade sale potential," Fountain Healthcare Partners' Manus Rogan told Ebb & Flow.

The Dublin firm led the financing, which included other existing shareholders Sofinnova Ventures; OrbiMed Advisors; and Longitude Capital. New investors include Abingworth Management; APG Asset Management; Great Point; Tavistock Life Sciences; and RA Capital Management.

Abingworth is using money from its venture and growth equity funds. Fund manager Joe Anderson is backing the VIPE for a number of reasons.

"It is targeting the fast growing triglyceride market with a compound that has the potential to be best in class, it has a highly experienced clinical team, has two SPAs and the public markets have created a good entry point at an attractive valuation of less than $40 million pre-money," he told Ebb & Flow. "What the company was lacking was the financial resources to execute the development plan. It now has that."

Trade exit

Part of the excitement around AMR101

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