Analyst Serge Belanger from Needham maintained a Buy rating on Esperion and keeping the price target at $4.00.
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Serge Belanger has given his Buy rating due to a combination of factors including the recent approval of Nexletol in Japan, which marks a significant milestone for Esperion. This approval not only opens up a major market but also triggers a potential $120 million milestone payment from their collaboration with Otsuka Pharmaceutical Co., Ltd. The financial benefits from this agreement, such as sales-based milestones and tiered royalties, are expected to significantly enhance Esperion’s revenue streams.
Additionally, Esperion’s current cash reserves and the anticipated milestone payment provide a strong foundation to meet their profitability goals by the first quarter of 2026. The company plans to utilize these funds to manage debt obligations and invest in research and development, which includes projects like the triple combo Nexletol product and the ACLY-inhibitor program. The positive trajectory in prescription growth for Nexletol and Nexlizet further supports the optimistic outlook for the company’s financial performance.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $16.00 price target.