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Esperion (ESPR)
NASDAQ:ESPR
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Esperion
(NASDAQ:ESPR)
40Underperform
Positive Factors
Financial Performance
Esperion's financials show a significant U.S. net product revenue growth of 52% year-over-year in 4Q24.
Market Expansion
Esperion continues to expand the company's global reach across key regions through strategic partnerships.
Pipeline Development
Management announced ongoing pipeline expansion opportunities, including development of two triple-combination products with anticipated LDL-C lowering of more than 60%.
Negative Factors
Growth Challenges
US growth has showed signs of slowing, with 4Q’s script growth a meaningful decline this early on.
Revenue Trends
Revenue per scripts continued its downward trend, impacted by the initiation of new Medicare contracts.
Sales Performance
US sales of bempedoic acid (BA) missed by -$3M (-8%), marking the 3rd consecutive quarter the franchise has come in below.
Esperion (ESPR) vs. S&P 500 (SPY)
Market Cap
$296.77M
Dividend YieldN/A
Average Volume (3M)3.83M
Price to Earnings (P/E)―
Beta (1Y)3.16
Revenue Growth185.66%
EPS Growth89.22%
CountryUS
Employees304
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.27
Shares Outstanding197,848,890
10 Day Avg. Volume3,736,215
30 Day Avg. Volume3,831,967
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.01
Price to Cash Flow (P/CF)-2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.20Price Target Upside400.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Esperion Business Overview & Revenue Model
Company DescriptionEsperion Therapeutics, Inc., a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol. Its lead product candidates are NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid and ezetimibe) tablets for the treatment of patients with atherosclerotic cardiovascular disease or heterozygous familial hypercholesterolemia. The company has a license and collaboration agreement with Daiichi Sankyo Europe GmbH; and Serometrix to in-license its oral, small molecule PCSK9 inhibitor program. Esperion Therapeutics, Inc. was incorporated in 2008 and is headquartered in Ann Arbor, Michigan.
How the Company Makes MoneyEsperion makes money primarily through the sales of its FDA-approved oral therapies, including bempedoic acid and the bempedoic acid/ezetimibe combination tablet, marketed under the brand names NEXLETOL and NEXLIZET. The company's revenue model is centered around the commercial distribution of these cholesterol-lowering medications to healthcare providers, pharmacies, and directly to patients. Esperion's earnings are also bolstered by strategic partnerships and licensing agreements that expand the reach and distribution of its products in international markets. Additionally, the company may earn milestone and royalty payments through collaborations with other pharmaceutical companies.
Esperion Financial Statement Overview
Summary
Esperion demonstrates strong revenue growth but faces challenges with profitability and financial stability. The company has negative net income and high debt levels, with a reliance on debt financing. Cash flows are improving but remain negative, indicating ongoing financial risks.Income Statement
Esperion's revenue increased significantly from 2023 to 2024, demonstrating a strong growth trajectory in the income statement. However, the company continues to face challenges with profitability, as evidenced by negative net income, resulting in a negative net profit margin. The gross profit margin remains high, indicating efficient cost management relative to revenue, but negative EBIT and EBITDA margins highlight operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows significant financial leverage with a negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, which is a red flag. Total debt is substantial, and the equity ratio is negative, suggesting the company is heavily reliant on debt financing. The negative return on equity further highlights profitability challenges.30
Negative
Cash Flow
Esperion's cash flow statement reveals improving free cash flow, although it remains negative. Operating cash flow is also negative, which raises concerns about the sustainability of operations without external financing. The free cash flow to net income ratio is not favorable due to persistent losses, though the operating cash flow to net income ratio suggests some efficiency in cash management relative to net losses.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 332.31M | 116.33M | 75.47M | 78.45M | 227.55M | Gross Profit |
| 332.31M | 73.07M | 48.51M | 64.23M | 225.16M | EBIT |
| 54.40M | -155.56M | -179.50M | -226.73M | -121.40M | EBITDA |
| 7.57M | -150.11M | -176.35M | -222.14M | -120.33M | Net Income Common Stockholders |
| -51.74M | -209.25M | -287.82M | -318.82M | -166.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 144.76M | 82.25M | 124.78M | 208.89M | 304.96M | Total Assets |
| 343.82M | 205.80M | 247.94M | 381.59M | 353.26M | Total Debt |
| 297.60M | 540.95M | 260.95M | 260.20M | 185.41M | Net Debt |
| 152.84M | 458.70M | 136.17M | 51.30M | -119.55M | Total Liabilities |
| 732.54M | 660.79M | 571.72M | 578.53M | 449.39M | Stockholders Equity |
| -388.72M | -454.99M | -1.34B | -1.11B | -838.82M |
| Cash Flow | Free Cash Flow | |||
| -23.97M | -135.49M | -174.83M | -263.81M | -98.55M | Operating Cash Flow |
| -23.65M | -135.49M | -174.83M | -263.81M | -85.18M | Investing Cash Flow |
| -317.00K | 42.50M | 8.10M | -50.48M | 21.36M | Financing Cash Flow |
| 86.48M | 50.46M | 32.61M | 268.22M | 201.72M |
Esperion Technical Analysis
Negative
1.44
Price Trends
1.77
Negative
2.11
Negative
2.09
Negative
Market Momentum
-0.06
Negative
35.82
Neutral
22.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESPR, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.77, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESPR.
Esperion Risk Analysis
Esperion disclosed 60 risk factors in its most recent earnings report. Esperion reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Esperion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.68B | 16.63 | 15.95% | 0.14% | 8.27% | 10.35% | |
64 Neutral | $126.52B | ― | -3.15% | ― | 11.64% | -114.72% | |
54 Neutral | $7.24B | ― | -80.35% | ― | ― | -10.89% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
42 Neutral | $181.18M | ― | -15.79% | ― | -25.86% | -37.14% | |
40 Underperform | $296.77M | ― | 23.44% | ― | 185.66% | 89.22% | |
39 Underperform | $1.13B | ― | 30.06% | ― | -30.65% | 77.62% |
* Healthcare Sector Average
Performance Comparison
ESPR
Esperion
1.44
-1.35
-48.39%
AMRN
Amarin
0.45
-0.43
-48.86%
NVAX
Novavax
6.41
1.76
37.85%
REGN
Regeneron
634.23
-333.84
-34.49%
MDGL
Madrigal Pharmaceuticals
331.23
75.49
29.52%
VRTX
Vertex Pharmaceuticals
484.82
64.34
15.30%
Esperion Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -8.86% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including FDA label expansions, strong revenue growth, and successful global partnerships. However, challenges such as the impact of the Medicare coverage gap and a slow start to 2025 prescription trends were also noted.Highlights
U.S. FDA Approval for Expanded Labels
In March 2024, Esperion Therapeutics received U.S. FDA approval for the expanded labels of NEXLETOL and NEXLIZET, making them the only FDA-approved nonstatins to lower LDL-cholesterol and reduce the risk of myocardial infarction and coronary revascularization in both primary and secondary prevention patients.
Significant Revenue Growth
Fourth quarter 2024 total revenue was $69.1 million, an increase of 114% compared to $32.3 million in the fourth quarter of 2023. U.S. net product revenue increased by approximately 52%.
Global Expansion and Partnerships
Esperion entered into partnerships with CSL Seqirus and Neopharm Israel to commercialize NEXLETOL and NEXLIZET in Australia, New Zealand, and Israel. A new drug application was also submitted in Japan by partner Otsuka.
Strong International Performance
Royalty revenue from DSE increased 9% sequentially to $9.7 million in the fourth quarter of 2024, with full-year royalty revenue increasing 116% year-over-year to $32.6 million.
Robust Financial Strategy
Esperion executed financial transactions, including a $304.7 million royalty purchase agreement and a $150 million secured term loan facility, reshaping their capital structure and providing financial flexibility.
Lowlights
Impact of Medicare Coverage Gap
The fourth quarter of 2024 experienced an exceptional impact from the Medicare coverage gap due to a number of new Medicare contracts initiated in 2024.
Slow Start to 2025 Prescription Trends
Low single-digit growth in prescriptions midway through the first quarter of 2025 indicates a step down from the fourth quarter, attributed to typical first-quarter slowdowns.
Company Guidance
In the recent earnings call, Esperion Therapeutics provided guidance highlighting strong performance and strategic initiatives. The company reported a 12% sequential quarterly growth in total retail prescription equivalents (TRPEs) for its bempedoic acid products, NEXLETOL and NEXLIZET, during the fourth quarter of 2024. They have expanded payer access, covering over 173 million lives in the U.S., and increased their prescriber base by 10% to more than 25,000 healthcare providers. Esperion is also focusing on international expansion, with royalties from European partner DSE growing 9% sequentially to $9.7 million in Q4 2024 and full-year royalties up 116% to $32.6 million. The company anticipates approval and national health insurance pricing in Japan by the second half of 2025. Additionally, Esperion announced a new partnership with CSL Seqirus for commercialization in Australia and New Zealand and expects to file for marketing approval in Israel in the first half of 2025. Financially, Esperion ended 2024 with $144.8 million in cash and projects operating expenses for 2025 to be between $215 million and $235 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.