Esperion stock target cut to $4 by JMP Securities

On Tuesday, JMP Securities adjusted its price target for Esperion Therapeutics (NASDAQ:ESPR) shares, lowering it to $4.00 from the previous $7.00. Currently trading at $1.86, the stock sits well below analyst targets ranging from $2.05 to $16.00. The firm maintains a Market Outperform rating for the biopharmaceutical company. According to InvestingPro data, two analysts have recently revised their earnings expectations downward for the upcoming period. The reassessment follows the observation of a consistent increase in prescriptions for Esperion’s products, NEXLETOL and NEXLIZET, which have been experiencing double-digit percentage demand growth each quarter.

The positive trend in prescription volume is attributed to the FDA’s approval last year of expanded product labels for both drugs, which now include cardiovascular outcomes benefits. This regulatory enhancement has been a catalyst for growth, as it led to broader reimbursement coverage, subsequently fueling the uptick in prescription rates. This growth is reflected in the company’s impressive revenue growth of 187% over the last twelve months, with analysts forecasting continued sales growth this year.

JMP Securities’ analysis suggests that the demand for NEXLETOL and NEXLIZET will continue to rise at a similar pace in the coming years. The products have shown a growth of at least 12% per quarter since the label expansion and improved insurance coverage.

The firm’s outlook on Esperion remains optimistic despite the reduction in the price target. The adjustment reflects a recalibration of expectations rather than a negative outlook on the company’s performance or potential.

Esperion Therapeutics specializes in developing and commercializing therapies to treat patients with elevated low-density lipoprotein cholesterol (LDL-C). With the continued growth in demand for its products, the company aims to meet the needs of patients requiring lipid-lowering treatments that demonstrate cardiovascular benefits. Despite strong revenue growth, InvestingPro analysis shows the company remains unprofitable, with upcoming earnings scheduled for February 27. Discover more insights and 5 additional ProTips about ESPR with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report available for this stock.

In other recent news, Esperion Therapeutics has been a focus of several significant developments. JMP Securities maintained a Market Outperform rating and a price target of $7.00 for Esperion, based on the efficacy and safety profile of its drug NEXLETOL/NEXLIZET, which has been reinforced by clinical trial data and expert insights. However, Goldman Sachs resumed its coverage of the company with a Neutral rating and a $4.00 price target, highlighting concerns about the company’s pipeline and the need for increased adoption of bempedoic acid.

Esperion also revealed an increase in its expected operating expenses for the fiscal year ending December 31, 2025. The company projected research & development costs to be between $55 million to $65 million and selling, general, and administrative expenses to range from $160 million to $170 million.

In a strategic financial move, Esperion issued $100 million in 5.75% Convertible Senior Subordinated Notes due 2030 and secured a $150 million senior secured term loan. These actions aim to extend the maturity of its debt and provide additional working capital. The company also exchanged approximately $57.5 million in new notes and $153.4 million in cash for about $210.1 million of its 4.00% Convertible Senior Subordinated Notes due 2025.

These are the latest developments surrounding Esperion Therapeutics, as the company continues to navigate its financial and operational landscape.

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