Esperion (ESPR) Q4 Earnings Top, Stock Up on Strong Revenues
Esperion Therapeutics, Inc. ESPR incurred a loss per share of 50 cents in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 53 cents. The company incurred a loss of 76 cents per share in the year-ago quarter.
Esperion generated revenues of $32.3 million, up 72% year over year. The reported figure beat the Zacks Consensus Estimate of $26.8 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). 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 developing and commercializing Nexletol and Nexlizet tablets with Otsuka Pharmaceuticals.
Product revenues, solely from the United States, totaled $20.8 million in the fourth quarter, up 39% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription increased 44% year over year and 8% quarter over quarter.
The reported product revenues missed the Zacks Consensus Estimate of $21.0 million but beat our model estimate of $20.4 million.
Esperion recorded collaboration revenues, which include combined royalty and partner revenues, of $11.5 million during the reported quarter, up 195% year over year. The upside can be attributed to increased royalty revenues and tablet shipments to international partners.
Collaboration revenues significantly beat the Zacks Consensus Estimate and our model estimate of $4.9 million and $5.3 million, respectively.
Shares of the company rallied 10.3% on Tuesday in response to the better-than-expected collaboration revenue performance. Yet, the stock has lost 3.0% year to date against the industry’s 3.7% fall.
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Research and development (R&D) expenses declined 46% from the year-ago period’s levels to $17.7 million, primarily related to the close-out of the company’s CLEAR Outcomes study.
Selling, general and administrative (SG&A) expenses were up 88% year over year to $45.4 million, thanks to higher legal and promotional costs.
As of Dec 31, 2023, Esperion had cash, cash equivalents, restricted cash and investment securities of $82.2 million compared with $114.8 million as of Sep 30, 2023.
Full-Year Results
Esperion reported $116.3 million in revenues for full-year 2023, up 54% year over year. U.S. net product revenues rallied nearly 40% year over year to $78.3 million.
The company incurred a loss of $2.03 per share in 2023 compared with a loss of $3.52 in 2022.
2024 Guidance
Esperion issued a fresh financial outlook for 2024. The company expects operating expenses in the range of $225-$245 million, including $20 million in non-cash expenses related to stock compensation. Guidance for total operating expenses includes $45-$55 million in R&D expenses and $180-$190 million in SG&A expenses.
Recent Updates
Last month, Esperion signed an amendment to its existing collaboration with Daiichi Sankyo Europe (DSE), which is valued at $125 million. One of the terms of this agreement also involves an ‘amicable resolution’ to a commercial dispute between the companies last year over a milestone payment.
Per the terms of settlement between the two companies, Daiichi will pay $100 million to Esperion in the coming weeks prior to the label expansion for their bempedoic acid products Nilemdo and Nustendi in reducing cardiovascular (CV) risk among patients with or at high risk for atherosclerotic cardiovascular disease (ASCVD). On receipt of the EMA’s approval, Esperion is entitled to receive a further payment of $25 million from DSE. A final decision is expected by first-half 2024.
As part of the resolution, Esperion will shift manufacturing and supply responsibilities to Daiichi in Europe and other territories. This is expected to yield significant cost savings and efficiencies for both companies. DSE will also lead all regulatory activities with the EMA regarding the pending applications.
In December, the FDA updated the labels on Nexletol and Nexlizet. The updated labeling in both of Esperion’s drugs adds the treatment of primary hyperlipidemia (high cholesterol) as a qualifier for existing approved populations while removing the statin limitation. These updates are effective immediately.
Last year, ESPR also submitted supplemental new drug applications to the FDA for the label expansion of Nexletol and Nexlizet in CV risk reduction indication. A final decision is expected before the end of the next month.
Esperion Therapeutics, Inc. Price
Esperion Therapeutics, Inc. price | Esperion Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Esperion currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Adicet Bio (ACET), ADMA Biologics (ADMA) and Puma Biotechnology PBYI. While Puma Biotechnology sports a Zacks Rank #1 (Strong Buy) at present, Adicet and ADMA carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have risen from 69 cents to 71 cents. Year to date, shares of PBYI have rallied 49.2%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on one occasion. Puma delivered a four-quarter average earnings surprise of 76.55%.
In the past 60 days, estimates for Adicet Bio’s 2024 loss per share have improved from $2.11 to $1.81. Year to date, shares of ACET have rallied 26.5%.
Earnings of Adicet Bio beat estimates in two of the trailing four quarters while missing the mark on the other two occasions. On average, Adicet came up with a four-quarter negative earnings surprise of 8.36%.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per sharehave risen from 18 cents to 22 cents. Year to date, shares of ADMA have risen 22.1%.
Earnings of ADMA Biologicsbeat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 63.57%.
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