Esperion settles patent litigation with Dr. Reddy’s Laboratories

Published 03/10/2025, 13:06
Esperion settles patent litigation with Dr. Reddy’s Laboratories

ANN ARBOR - Esperion Therapeutics Inc. (NASDAQ:ESPR), whose stock has surged over 124% in the past six months, announced Friday it has reached a settlement agreement with Dr. Reddy’s Laboratories in patent litigation related to generic versions of its cholesterol-lowering drugs NEXLETOL and NEXLIZET. According to InvestingPro data, the company, currently valued at $586 million, is showing signs of potential turnaround despite operating with significant debt.

Under the settlement terms, Dr. Reddy’s has agreed not to market generic versions of either medication in the United States before April 19, 2040, except under certain limited circumstances typically included in such agreements. This development comes as InvestingPro analysis shows Esperion maintaining a current ratio of 1.15, with analysts projecting profitability this year.

This resolution follows similar settlements Esperion reached earlier this year with Micro Labs USA, Hetero USA, and Accord Healthcare regarding generic versions of NEXLETOL.

The company’s bempedoic acid, the active ingredient in its medications, is protected by U.S. Patent No. 7,335,799, scheduled to expire in December 2030. With the Dr. Reddy’s settlement, Esperion noted there are no remaining challenges to the validity or infringement of this patent in pending litigation.

Additional Esperion patents involved in ongoing litigation are set to expire in March 2036 and June 2040. The company continues to pursue patent litigation against several other pharmaceutical firms, including Alkem Laboratories, Aurobindo Pharma, MSN Pharmaceuticals, Renata Limited, and Sandoz.

Esperion’s NEXLETOL and NEXLIZET are FDA-approved oral, once-daily, non-statin medicines for patients with elevated LDL cholesterol who are at risk for cardiovascular disease.

The announcement was made in a company press release statement. With revenue of $268 million in the last twelve months and analysts forecasting 18% revenue growth, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including Esperion’s complete financial health assessment and growth prospects.

In other recent news, Esperion Therapeutics reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) were recorded at -$0.02, significantly surpassing the anticipated -$0.14, marking an 85.71% positive surprise. Revenue for the quarter was $82.4 million, exceeding the forecasted $63.54 million by 29.67%. These results reflect strong performance and have garnered positive reactions from investors. Additionally, Esperion’s cholesterol-lowering drug NEXLETOL received regulatory approval in Japan. The approval was granted by the Japanese Ministry of Health, Labour and Welfare, and it allows Esperion’s partner, Otsuka Pharmaceuticals, to market the drug for treating hypercholesterolemia and familial hypercholesterolemia. H.C. Wainwright has reiterated its Buy rating on Esperion, maintaining a $16.00 price target following this development. Similarly, JMP Securities has kept its Market Outperform rating with a $4.00 price target on the company’s stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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