Why some investors shy away from biotech, in one chart

Two years ago, Amarin was a middling biotech company with a little-used heart drug whose shares went for about $3 each. Over the ensuing 24 months, it would shock the cardiology world, make its investors look prescient, and then crash right back to where it began, providing a stark illustration of what makes biotech often so maddening.

The latest twist came yesterday, when an appeals court issued a ruling that will expose Amarin's drug Vascepa to generic competition as soon as possible, undercutting its blockbuster potential before it had a chance to begin.

Amarin’s share price has fallen more than 75% since Vascepa’s major clinical victory, now trading just above its value back in fall 2018.

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