On Wednesday, Goldman Sachs resumed its coverage of Esperion (NASDAQ:ESPR) Therapeutics (NASDAQ:ESPR), assigning a Neutral rating to the biopharmaceutical company's stock with a price target of $4.00. Trading at $2.46, InvestingPro data shows the stock has demonstrated strong momentum over the past three months, despite recent volatility. The new target reflects the firm's assessment of the company's prospects following recent developments.
Esperion's Nexletol and Nexlizet, drugs designed to lower cholesterol, have seen an increase in uptake after label expansion, with revenue growing an impressive 187% year-over-year to $295.45 million, though feedback from key opinion leaders (KOLs) is reportedly mixed. Goldman Sachs highlighted that the company's lack of a mid-to-late stage pipeline is a concern, especially as it approaches the end of the decade with patent expirations (LOE) on the horizon.
The analyst's statement indicated that investor attention has likely shifted back to Esperion's commercial performance and fundamental business aspects. These factors are seen as "balanced" in relation to the current stock price, which InvestingPro analysis suggests is slightly undervalued.
The company's future, according to Goldman Sachs, will be closely watched, particularly in relation to its efforts to boost the adoption of bempedoic acid, especially in the primary prevention market, and its ability to replenish its pipeline.
Goldman Sachs' reinstatement of coverage with a Neutral rating and a $4 price target is based on the firm's view that while Esperion has made progress, there are still significant challenges ahead that the company needs to address to enhance its commercial and developmental trajectory.
For a comprehensive analysis of Esperion's financial health, growth prospects, and detailed metrics, access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Esperion Therapeutics has been making significant strides. The biopharmaceutical company has been recognized by Cantor Fitzgerald, which initiated coverage with an Overweight rating, noting the strong potential of Esperion's products, NEXLETOL and NEXLIZET. Despite competitive pressures from other cholesterol-lowering drugs, Esperion's products have shown impressive revenue growth of 187% in the last twelve months.
On the international front, Esperion has secured a licensing agreement with Neopharm Israel, granting exclusive rights to commercialize its cardiovascular drugs NEXLETOL and NEXLIZET in Israel, Gaza, and the West Bank. This move is part of Esperion's broader international growth strategy and commitment to commercial development.
Esperion has also submitted New Drug Submissions to Health Canada for NEXLETOL and NEXLIZET, with the company's partner, Otsuka Pharmaceutical (TADAWUL:2070) Co., Ltd., submitting a New Drug Application to the Japanese Ministry of Health, Labour and Welfare for bempedoic acid. These developments have been positively received by H.C. Wainwright, which maintained a Buy rating for Esperion.
In terms of financial performance, Esperion reported a 53% year-over-year increase in U.S. net product revenue, totaling $31.1 million in the third quarter of 2024, and a total revenue rise to $51.6 million, up from $34 million the previous year. These recent developments highlight the company's ongoing efforts to expand its global reach and enhance its product offerings.
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