ANN ARBOR, Mich. - Esperion (NASDAQ:ESPR) Therapeutics Inc. (NASDAQ:ESPR), a pharmaceutical company focused on developing treatments for cardiovascular and cardiometabolic diseases, has sold its European royalty interest in bempedoic acid products to OMERS Life Sciences for approximately $304.7 million.
The transaction grants OMERS a capped royalty on net sales of the products in Europe, where Daiichi Sankyo Europe (DSE) holds exclusive licensing rights.
Under the agreement, OMERS, the investment arm of the Ontario Municipal Employees Retirement System, will receive a tiered royalty ranging from 15-25% until it has accrued 1.7 times its initial investment. Post that, the royalty stream will revert to Esperion. Moreover, Esperion retains the potential to earn up to $300 million in milestone payments based on DSE's sales performance.
The deal, announced today, provides Esperion with increased financial flexibility, enabling the early payoff of its obligations to Oberland Capital and freeing its balance sheet from senior secured liens. The company aims to optimize its commercialization efforts in the U.S. and leverage the value of its assets, which they believe have been undervalued in the market.
Esperion's President and CEO, Sheldon Koenig, emphasized the transaction's strategic benefits, including the continued partnership with DSE and the potential of the triple combination product in development. Ben Halladay, Esperion's Chief Financial Officer, remarked on the strengthened balance sheet and the focus it brings to the company's U.S. commercial efforts.
Rob Missere, Managing Director & Head of Life Sciences at OMERS, expressed confidence in the future European sales of bempedoic acid and the expected benefits for patients across Europe. The investment aligns with OMERS's mandate to deliver long-term returns for its members.
J. Wood Capital Advisors acted as financial advisor to Esperion for the royalty sale.
Esperion continues to focus on providing innovative medicines for patients with high cholesterol, addressing a significant unmet medical need. The company's portfolio includes treatments aimed at reducing LDL-cholesterol levels to improve patient outcomes.
This news is based on a press release statement from Esperion Therapeutics.
In other recent news, Esperion Therapeutics has seen significant developments in its operations. The company reported a robust growth in its first-quarter revenue for 2024, reaching a total of $137.7 million, including a substantial $100 million from a litigation-related settlement. Additionally, Esperion's U.S. net revenue saw a 46% increase compared to the previous year, reaching $24.8 million.
Analysts from BofA Securities revised their stance on Esperion, shifting from a Neutral to an Underperform rating due to concerns about escalating competition from pharmaceutical giant Merck. Meanwhile, H.C. Wainwright has reiterated a Buy rating for Esperion following successful results from a Phase 3 trial of bempedoic acid in Japan, aimed at patients with hypercholesterolemia.
Esperion has also received FDA approval for expanded labels for its drugs, NEXLETOL and NEXLIZET, positioning them as the only non-statins approved for cardiovascular risk reduction in patients.
The European Commission approved expanded indications for Esperion's drugs, NILEMDO and NUSTENDI, for cardiovascular risk reduction and LDL-C lowering in patients, with or without statin use. These recent developments highlight Esperion's continued progress in expanding its product offerings and strengthening its market position.
InvestingPro Insights
Esperion Therapeutics Inc. (NASDAQ:ESPR) has demonstrated a remarkable revenue growth in the last twelve months as of Q1 2024, with a surge of 183.74%. This performance is further highlighted by a quarterly revenue growth of 466.14% in Q1 2024.
Such figures may be indicative of the company's potential in capitalizing on the growing demand for innovative cholesterol treatments and could explain the strategic royalty transaction with OMERS Life Sciences. With a market capitalization of 437.65 million USD, Esperion's financial dynamics are a point of interest for investors evaluating the company's market position and growth trajectory.
Despite not being profitable over the last twelve months, with an adjusted P/E ratio of -5.06, the company has secured a vote of confidence from analysts, as reflected by three analysts revising their earnings upwards for the upcoming period. This optimism from analysts, as detailed in InvestingPro Tips, may align with the company's recent strategic moves to enhance financial flexibility and focus on U.S. commercial efforts.
Investors should note that Esperion has achieved a high return over the last year, with a 1 Year Price Total Return of 67.39%. This impressive return rate could be a sign of investor confidence in the company's long-term strategy and the value of its assets.
Moreover, Esperion's liquid assets exceed its short-term obligations, which suggests a solid financial footing for near-term operations. Still, it is important to consider that the company does not pay dividends, which might influence investment decisions for those seeking regular income.
For more detailed analysis and additional InvestingPro Tips, including whether analysts anticipate Esperion will be profitable this year, investors can visit https://www.investing.com/pro/ESPR. Plus, by using the coupon code PRONEWS24, new subscribers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights and metrics that can guide investment decisions.
With a total of seven additional tips listed in InvestingPro, investors have access to a comprehensive view of Esperion Therapeutics' financial health and market potential, offering a deeper understanding of the company's prospects amid its recent strategic initiatives.
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