Yahoo Finance Esperion (ESPR) Q4 Loss Narrows, Revenues Miss, Stock Down
Esperion Therapeutics ESPR incurred a loss per share of 76 cents per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate as well as our estimate of a loss of 87 cents per share and 81 cents, respectively. The company incurred a loss of $1.77 per share in the year-ago period.
Esperion generated revenues of $18.8 million, up 22% year over year. However, the reported figure missed the Zacks Consensus Estimate of $20.0 million as well as our estimate of $19.0 million.
Esperion’s shares were down 5.5% on Tuesday in response to the rather soft revenue performance. Shares of Esperion have surged 38% in the past year against the industry’s 8.3% decline.
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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. Esperion records royalties on sales of its drugs in Europe.
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, were $15.0 million in the fourth quarter, up approximately 23% year over year. Product revenues were up 7.1% sequentially.
Esperion recorded royalty revenues of $2.3 million during the reported quarter, up 188% year over year. Combined royalty and partner revenues were $3.9 million, up approximately 22% year over year.
Research and development expenses increased 20% from the year-ago period’s levels to $33.0 million due to accelerated costs for the CLEAR cardiovascular outcomes (CVOT) study.
Selling, general and administrative expenses were down 37% year over year to $24.1 million, reflecting the positive impact of its cost-savings programs as part of its transformational plan announced in 2021.
As of Dec 31, 2022, Esperion had cash, cash equivalents, restricted cash and investment securities of $166.9 million compared with $239.3 million as of Sep 30, 2022.
Full-Year Results
Esperion reported $75.5 million in revenues for full-year 2022, down 4.5% year over year. Revenues missed the Zacks Consensus Estimate of $76.6 million. U.S. net product revenues grew approximately 40% year over year to $55.9 million in 2022.
The company incurred a loss of $3.52 per share in 2022 compared with a loss of $9.31 in 2021. The loss was narrower than the Zacks Consensus Estimate of a loss of $3.64 per share.
Pipeline Update
Esperion’s CVOT study was evaluating the effects of bempedoic acid, a key ingredient of its drugs, on the occurrence of major adverse cardiovascular events (MACE) in patients with or at high risk for cardiovascular disease who are ineligible for the lowest approved statin dose.
In December 2022, the CLEAR study achieved its primary endpoint and additional key secondary endpoints. Data from the study showed a statistically significant reduction in the risk of major adverse cardiovascular events (MACE-4) in patients treated with 180 mg/day of Nexletol compared to placebo. Esperion has thus successfully completed the CVOT study. Management plans to submit this data to global regulatory authorities in first-half 2023 and expects to get approval for the expanded use of its drugs in the first half of 2024.
Detailed results from the CVOT study are expected to be presented at an upcoming medical conference in March.
Zacks Rank & Stocks to Consider
Esperion currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the drug sector include Catalyst Pharmaceuticals CPRX, Collegium Pharmaceutical COLL and Alaunos Therapeutics TCRT, While Catalyst Pharmaceuticals and Collegium Pharmaceutical sport a Zacks Rank of 1 (Strong Buy), Alaunos Therapeutics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Catalyst’s 2023 earnings per share have improved from $1.10 per share to $1.13 in the past 60 days.
Earnings of Catalyst missed estimates in two of the trailing four quarters and beat the same twice. The average negative earnings surprise for CPRX is 4.10%. CPRX stock has risen 105.3% in the past year. Catalyst is expected to report its fourth-quarter results next month.
Estimates for Collegium Pharmaceutical’s 2023 earnings have risen from $5.84 to $6.20 per share in the past 60 days.
Collegium Pharmaceutical missed earnings estimates in each of the last four quarters, the average negative surprise being 77.06%. COLL’s stock has risen 15.3% in the past year.
Estimates for Alaunos Therapeutics’ 2023 loss have narrowed from 21 cents to 20 cents per share in the past 60 days.
Alaunos Therapeutics beat earnings estimates in each of the last four quarters, the average surprise being 52.53%. TCRT’s stock has declined 27.1% in the past year.
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