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Esperion (ESPR) Q3 Earnings Beat Estimates, Revenues Miss
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Esperion Therapeutics, Inc. (ESPR - Free Report) incurred a loss per share of 81 cents per share for the third quarter of 2022, narrower than the Zacks Consensus Estimate and our model estimate of a loss of 93 cents per share and 88 cents, respectively. The company reported a loss of $2.62 per share in the year-ago period.
Esperion generated revenues of $19.0 million, up 31.7% year over year. However, the reported figures missed the Zacks Consensus Estimate and our model estimates of $19.8 million and $21.2 million, respectively.
Shares of Esperion have surged 65.6% so far this year against the industry’s 28.8% decline.
Image Source: Zacks Investment Research
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 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.
Product revenues, solely from the United States, were $14.0 million in the third quarter, up approximately 28.2% year over year. Product revenues were up 2.8% sequentially.
Esperion recorded royalty revenues of $1.6 million during the reported quarter, compared with $1.5 million in the year-ago quarter. Royalty revenues were driven by the commercial launch of Nilemdo and Nustendi in new countries and growth in previously-launched territories.
Research and development (R&D) expenses increased 15% from the year-ago period’s levels to $29.1 million. This was caused by an increase in costs for the CLEAR cardiovascular outcomes study (CVOT), which ESPR conducted.
Selling, general and administrative expenses (SG&A) were down 36% year over year to $25.0 million, reflecting the positive impact of its cost-savings programs as part of its transformational plan announced in the fourth quarter of 2021.
Overall, Esperion achieved year-over-year cost savings of 16.3% in operational expenses during the quarter.
As of Sep 30, 2022, Esperion had cash, cash equivalents, restricted cash and investment securities of $239.3 million compared with cash, cash equivalents and short-term investments of $235.8 million as of Jun 30, 2022.
Pipeline Update
Esperion is evaluating bempedoic acid, a key ingredient of its drugs, for its effects on the occurrence of major cardiovascular events in patients with or at high risk for cardiovascular disease who are ineligible for the lowest approved statin dose.
During the second quarter, Esperion achieved 100% of targeted major adverse cardiovascular events (MACE-4) accumulation in the CLEAR CVOT study. Achieving this target will likely help ESPR complete this study early. Top-line data from this study is expected in first-quarter 2023. Positive data from the CVOT study is likely to boost the potential of Esperion’s drugs as the targeted patient population represents a lucrative opportunity.
Since August, management has started activating sites for conducting the phase II CLEAR Path 1 study. The study will evaluate bempedoic acid in patients aged 6-17 years with heterozygous familial hypercholesterolemia (HeFH).
2022 Guidance
Esperion maintained its previous guidance for R&D and SG&A costs in 2022. The company expects R&D expense for 2022 to be in the range of $100-$110 million, while SG&A expense is expected to be between $120 million and $130 million.
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 66.4% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 9.3% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.61 to $6.94 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.75 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, ANGN delivered an earnings surprise of 31.94%.
Merck’s stock has risen 32.1% this year so far. While Merck’s earnings estimates for 2022 have risen from $7.36 to $7.38 per share in the past 60 days, estimates for 2023 have increased from $7.17 to $7.34 per share during the same period.
Merck beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 16.07%, on average. In the last reported quarter, Merck reported an earnings surprise of 10.78%.
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Esperion (ESPR) Q3 Earnings Beat Estimates, Revenues Miss
Esperion Therapeutics, Inc. (ESPR - Free Report) incurred a loss per share of 81 cents per share for the third quarter of 2022, narrower than the Zacks Consensus Estimate and our model estimate of a loss of 93 cents per share and 88 cents, respectively. The company reported a loss of $2.62 per share in the year-ago period.
Esperion generated revenues of $19.0 million, up 31.7% year over year. However, the reported figures missed the Zacks Consensus Estimate and our model estimates of $19.8 million and $21.2 million, respectively.
Shares of Esperion have surged 65.6% so far this year against the industry’s 28.8% decline.
Image Source: Zacks Investment Research
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 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.
Product revenues, solely from the United States, were $14.0 million in the third quarter, up approximately 28.2% year over year. Product revenues were up 2.8% sequentially.
Esperion recorded royalty revenues of $1.6 million during the reported quarter, compared with $1.5 million in the year-ago quarter. Royalty revenues were driven by the commercial launch of Nilemdo and Nustendi in new countries and growth in previously-launched territories.
Research and development (R&D) expenses increased 15% from the year-ago period’s levels to $29.1 million. This was caused by an increase in costs for the CLEAR cardiovascular outcomes study (CVOT), which ESPR conducted.
Selling, general and administrative expenses (SG&A) were down 36% year over year to $25.0 million, reflecting the positive impact of its cost-savings programs as part of its transformational plan announced in the fourth quarter of 2021.
Overall, Esperion achieved year-over-year cost savings of 16.3% in operational expenses during the quarter.
As of Sep 30, 2022, Esperion had cash, cash equivalents, restricted cash and investment securities of $239.3 million compared with cash, cash equivalents and short-term investments of $235.8 million as of Jun 30, 2022.
Pipeline Update
Esperion is evaluating bempedoic acid, a key ingredient of its drugs, for its effects on the occurrence of major cardiovascular events in patients with or at high risk for cardiovascular disease who are ineligible for the lowest approved statin dose.
During the second quarter, Esperion achieved 100% of targeted major adverse cardiovascular events (MACE-4) accumulation in the CLEAR CVOT study. Achieving this target will likely help ESPR complete this study early. Top-line data from this study is expected in first-quarter 2023. Positive data from the CVOT study is likely to boost the potential of Esperion’s drugs as the targeted patient population represents a lucrative opportunity.
Since August, management has started activating sites for conducting the phase II CLEAR Path 1 study. The study will evaluate bempedoic acid in patients aged 6-17 years with heterozygous familial hypercholesterolemia (HeFH).
2022 Guidance
Esperion maintained its previous guidance for R&D and SG&A costs in 2022. The company expects R&D expense for 2022 to be in the range of $100-$110 million, while SG&A expense is expected to be between $120 million and $130 million.
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 other top-ranked stocks in the overall healthcare sector include Angion Biomedica , Gilead Sciences (GILD - Free Report) and Merck (MRK - Free Report) , each of which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 66.4% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 9.3% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.61 to $6.94 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.75 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, ANGN delivered an earnings surprise of 31.94%.
Merck’s stock has risen 32.1% this year so far. While Merck’s earnings estimates for 2022 have risen from $7.36 to $7.38 per share in the past 60 days, estimates for 2023 have increased from $7.17 to $7.34 per share during the same period.
Merck beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 16.07%, on average. In the last reported quarter, Merck reported an earnings surprise of 10.78%.