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Esperion's (ESPR) Q2 Loss Narrows, Revenues Soar Year Over Year
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Esperion Therapeutics, Inc. (ESPR - Free Report) incurred a loss of 5 cents per share for the second quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 15 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Esperion generated revenues of $73.8 million, up nearly 186% year over year, driven by higher collaboration revenues and product revenues in the United States. The reported figure beat the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Esperion has two FDA-approved drugs in its commercial portfolio — Nexletol and Nexlizet — that are approved for treating elevated LDL-C (bad cholesterol) and cardiovascular risk reduction. These two oral drugs are marketed as Nilemdo and Nustendi in ex-U.S. markets (excluding Japan, where the company has a collaboration with Otsuka Pharmaceuticals) in partnership with Daiichi Sankyo. The company records royalties on sales of its drugs in ex-U.S. markets.
Product revenues, solely from the United States, totaled $28.3 million in the second quarter, up 39% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription increased 41% year over year and 14% quarter over quarter.
Product revenues missed the Zacks Consensus Estimate of $29.7 million.
Esperion recorded collaboration revenues, including combined royalty and partner revenues, of $45.5 million during the second quarter, up 727% year over year. The huge surge was mainly due to revenues recognized from the litigation-related settlement received from Daiichi Sankyo Europe (DSE),
Collaboration revenues significantly beat the Zacks Consensus Estimate and our model estimate of $20.7 million and $22.2 million, respectively.
Shares of Esperion were down in pre-market trading on Monday owing to weaker-than-expected product sales. The stock has lost 32.5% year to date compared with the industry’s 3.4% fall.
Image Source: Zacks Investment Research
Research and development expenses declined 48% from the year-ago period’s levels to $11.5 million, primarily related to the close-out of the company’s CLEAR Outcomes study.
Selling, general and administrative expenses were up 30% year over year to $44.2 million. The upside was due to an increase in the company’s sales force, in addition to bonus payments and promotional costs.
As of Jun 30, 2024, Esperion had cash, cash equivalents, restricted cash and investment securities of $189.3 million compared with $226.6 million as of Mar 31, 2024.
2024 Guidance
Esperion reiterated its financial outlook for 2024. The company continues to expect operating expenses in the range of $225-$245 million, including $20 million in non-cash expenses related to stock compensation.
Recent Updates
In May 2024, the European Commission (EC) approved a label update for Nilemdo (bempedoic acid) and Nustendi for the treatment of hypercholesterolemia and to reduce the risk of adverse cardiovascular (CV) events. Nustendi is a fixed-dose combination of bempedoic acid and ezetimibe.
Hypercholesterolemia indicates elevated levels of cholesterol in the blood.
Following the label expansion in Europe, Nilemdo and Nustendi became the first and only treatments for lowering LDL-C, approved for primary and secondary prevention of CV events.
Additionally, the updated labels support the use of Nilemdo and Nustendi either alone or in combination with statins.
During the second quarter of 2024, received a five-year patent extension for bempedoic acid, which is valid through Dec 3, 2030.
Also, in the second quarter, Esperion entered into a Royalty Purchase agreement with OMERS Life Sciences, under which the company received around $304.7 million in cash from OMERS in exchange for 100% interest of ESPR’s expected royalty entitlement on net sales of Nilemdo and Nustendi by Daiichi Sankyo Europe in the European market.
Esperion Therapeutics, Inc. Price, Consensus and EPS Surprise
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have narrowed from $1.24 to 48 cents. Loss per share estimates for 2025 have narrowed from $1.71 to $1.51. Year to date, shares of FULC have increased 31.2%.
FULC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 393.18%.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have narrowed from 14 cents to 13 cents. Loss per share estimates for 2025 have narrowed from $3.44 to $3.21. Year to date, shares of TRDA have lost 7.1%.
TRDA’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 42.18%.
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Esperion's (ESPR) Q2 Loss Narrows, Revenues Soar Year Over Year
Esperion Therapeutics, Inc. (ESPR - Free Report) incurred a loss of 5 cents per share for the second quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 15 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Esperion generated revenues of $73.8 million, up nearly 186% year over year, driven by higher collaboration revenues and product revenues in the United States. The reported figure beat the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Esperion has two FDA-approved drugs in its commercial portfolio — Nexletol and Nexlizet — that are approved for treating elevated LDL-C (bad cholesterol) and cardiovascular risk reduction. These two oral drugs are marketed as Nilemdo and Nustendi in ex-U.S. markets (excluding Japan, where the company has a collaboration with Otsuka Pharmaceuticals) in partnership with Daiichi Sankyo. The company records royalties on sales of its drugs in ex-U.S. markets.
Product revenues, solely from the United States, totaled $28.3 million in the second quarter, up 39% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription increased 41% year over year and 14% quarter over quarter.
Product revenues missed the Zacks Consensus Estimate of $29.7 million.
Esperion recorded collaboration revenues, including combined royalty and partner revenues, of $45.5 million during the second quarter, up 727% year over year. The huge surge was mainly due to revenues recognized from the litigation-related settlement received from Daiichi Sankyo Europe (DSE),
Collaboration revenues significantly beat the Zacks Consensus Estimate and our model estimate of $20.7 million and $22.2 million, respectively.
Shares of Esperion were down in pre-market trading on Monday owing to weaker-than-expected product sales. The stock has lost 32.5% year to date compared with the industry’s 3.4% fall.
Image Source: Zacks Investment Research
Research and development expenses declined 48% from the year-ago period’s levels to $11.5 million, primarily related to the close-out of the company’s CLEAR Outcomes study.
Selling, general and administrative expenses were up 30% year over year to $44.2 million. The upside was due to an increase in the company’s sales force, in addition to bonus payments and promotional costs.
As of Jun 30, 2024, Esperion had cash, cash equivalents, restricted cash and investment securities of $189.3 million compared with $226.6 million as of Mar 31, 2024.
2024 Guidance
Esperion reiterated its financial outlook for 2024. The company continues to expect operating expenses in the range of $225-$245 million, including $20 million in non-cash expenses related to stock compensation.
Recent Updates
In May 2024, the European Commission (EC) approved a label update for Nilemdo (bempedoic acid) and Nustendi for the treatment of hypercholesterolemia and to reduce the risk of adverse cardiovascular (CV) events. Nustendi is a fixed-dose combination of bempedoic acid and ezetimibe.
Hypercholesterolemia indicates elevated levels of cholesterol in the blood.
Following the label expansion in Europe, Nilemdo and Nustendi became the first and only treatments for lowering LDL-C, approved for primary and secondary prevention of CV events.
Additionally, the updated labels support the use of Nilemdo and Nustendi either alone or in combination with statins.
During the second quarter of 2024, received a five-year patent extension for bempedoic acid, which is valid through Dec 3, 2030.
Also, in the second quarter, Esperion entered into a Royalty Purchase agreement with OMERS Life Sciences, under which the company received around $304.7 million in cash from OMERS in exchange for 100% interest of ESPR’s expected royalty entitlement on net sales of Nilemdo and Nustendi by Daiichi Sankyo Europe in the European market.
Esperion Therapeutics, Inc. Price, Consensus and EPS Surprise
Esperion Therapeutics, Inc. price-consensus-eps-surprise-chart | Esperion Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Esperion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Fulcrum Therapeutics, Inc. (FULC - Free Report) and Entrada Therapeutics, Inc. (TRDA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have narrowed from $1.24 to 48 cents. Loss per share estimates for 2025 have narrowed from $1.71 to $1.51. Year to date, shares of FULC have increased 31.2%.
FULC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 393.18%.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have narrowed from 14 cents to 13 cents. Loss per share estimates for 2025 have narrowed from $3.44 to $3.21. Year to date, shares of TRDA have lost 7.1%.
TRDA’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 42.18%.