Esperion (ESPR) Q2 Earnings Top, Stock Up on Strong Revenues
Esperion Therapeutics ESPR incurred a loss of 46 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 63 cents per share. The company incurred a loss of $1.05 per share in the year-ago period.
Esperion generated revenues of $25.8 million, up 37.2% year over year. The reported figure beat the Zacks Consensus Estimate of $25 million.
Shares of the company rallied 7.64% on Tuesday in response to the strong revenue performance. The same lost 72.8% year to date against the industry’s 0.7% growth.
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Quarter in Detail
Esperion has two FDA-approved drugs — Nexletol and Nexlizet — in its commercial portfolio that are approved for treating elevated LDL-C (bad cholesterol). These two oral drugs are marketed as Nilemdo and Nustendi in Europe and several other ex-U.S. markets in partnership with Daiichi Sankyo. The company records royalties on sales of its drugs in Europe and other ex-U.S. markets.
In Japan, Esperion has an agreement for the development and commercialization of Nexletol and Nexlizet tablets with Otsuka Pharmaceuticals.
Product revenues, solely from the United States, totaled $20.3 million in the second quarter, up approximately 49% year over year driven by continued prescription growth. Product revenues were up 19.4% sequentially. The top line beat the Zacks Consensus Estimate and our model estimate of $18.2 million and $18.5 million, respectively.
The drugs’ retail prescriptions grew 26% in the country. Additionally, new-to-brand subscriptions grew 60% from the previous quarter’s level.
Esperion recorded collaboration revenues, which include combined royalty and partner revenues, of $5.5 million during the reported quarter, up 3.8% year over year. The increase was driven by higher royalty revenues, which were partially offset by the unfavorable timing of tablet shipments to some international partners.
Additionally, collaboration revenues missed both the Zacks Consensus Estimate and our model estimate of $6.64 million and $6.4 million, respectively.
Research and development (R&D) expenses declined 31.8% from the year-ago period’s level to $22.1 million due to lower costs related to the announcement and presentation of Esperion’s CLEAR Outcomes study results, earlier this March.
Selling, general and administrative (SG&A) expenses were up 14.9% year over year to $34 million, reflecting the upfront training expenses for the contract sales force as well as higher legal costs.
As of Jun 30, 2023, Esperion had cash, cash equivalents, restricted cash and investment securities of $138.5 million compared with $162.3 million as of Mar 31, 2023.
2023 Guidance
Esperion reiterated its financial outlook for 2023. The company still expects operating expenses in the range of $225-$245 million, including $25 million in non-cash expenses related to stock compensation. Guidance for total operating expenses includes $100-$110 million in R&D expenses and $125-$135 million in SG&A expenses.
Pipeline Updates
In June, Esperion submitted supplemental new drug applications to the FDA for the label expansion of Nexletol ((bempedoic acid) and Nexlizet ((bempedoic acid and ezetimibe). The company also submitted a type II(a) variation application for expanded use of Nilemdo and Nustendi to the European Medicines Agency.
These applications aim to seek approval for expanded use of bempedoic acid for reducing cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. Management expects to get approval for the expanded use in the first half of 2024.
Esperion Therapeutics, Inc. Price and Consensus
Esperion Therapeutics, Inc. price-consensus-chart | Esperion Therapeutics, Inc. Quote
Zacks Rank and Stocks to Consider
Esperion currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are ADC Therapeutics ADCT, ImmunoGen IMGN and Akoya Biosciences AKYA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has widened from a loss of $2.60 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.75 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 60.7% year to date.
ADCT’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.70%.
In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 61 cents per share to a loss of 51 cents for 2023. The consensus estimate has narrowed from a loss of 33 cents per share to a loss of 22 cents for 2024 during the same time frame. Shares of the company have rallied 267.9% year to date.
IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.
In the past 90 days, the Zacks Consensus Estimate for Akoya Biosciences has narrowed from a loss of $1.80 per share to a loss of $1.71 for 2023. The consensus estimate has narrowed from a loss of $1.57 per share to a loss of $1.33 for 2024 during the same time frame. Shares of the company have lost 30.1% year to date.
AKYA’s earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 21.05%.
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