Esperion Therapeutics rises as BofA raises PT

Daiichi

11/01/2024 13:53

** Shares of drugmaker Esperion Therapeutics  ESPR.O  rise
4.7% to $2.8 premarket 
    ** Brokerage BofA raises price objective to $2.8 from $2.5,
citing that ESPR can now focus on relaunching its heart disease
drug Nexletol after settling a litigation with partner Daiichi
Sankyo  4568.T  
    ** Co plans to file for expanded approval for the drug in H1
2024 based on results from its late-stage trial in which the
drug significantly reduced the risk of stroke and heart attack
        ** Nexletol is approved in the U.S. as a supplementary
treatment for a genetic disorder that causes dangerously high
cholesterol levels 
    ** Brokerage says the $125 mln settlement, even though lower
than the original milestone payment amount, removes "a potential
distraction" and makes sense given ESPR's near-term capital
needs 
    ** ESPR and Daiichi were involved in a legal dispute over a
$300 mln milestone payment related to Nexletol
    ** Brokerage also flags concerns around the commercial
opportunity for ESPR's heart disease drug due to high
competition in the space and challenges associated with getting
patients on treatments that work similarly
    ** Stock fell 52% in 2023 

 (Reporting by Sneha  S K)
 ((Sneha.SK@thomsonreuters.com;))