ESPR

Esperion Therapeutics Inc

Healthcare


Presented:06/16/2020
Price:$44.66
Cap:$1.23B
Current Price:$2.13
Cap:$0.42B

Presented

Date06/16/2020
Price$44.66
Market Cap$1.23B
Ent Value$0.88B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S27.62M
Ave Daily Vol714,613
Short Int34.26%

Current

Price$2.13
Market Cap$0.42B
Esperion Therapeutics, Inc. engages in the development and commercialization of oral therapies for the treatment of patients with elevated low-density lipoprotein cholesterol. It offers NEXLETOL (bempedoic acid) tablets, and NEXLIZET (bempedoic acid and ezetimibe) tablets. The company was founded by Roger S. Newton, Hans Ageland, Jan O. Johansson, Anders Paul Wiklund, Michael E. Pape, David I. Scheer and Charles L. Bisgaier in May 1998 and is headquartered in Ann Arbor, MI.

Publicly traded companies mentioned herein: Esperion Therapeutics (ESPR) 

Highlights

The presenter is short shares of Esperion Therapeutics (ESPR), as he believes the setup checks all the boxes for a “classic pharma/biotech short,” including a mismanaged product launch (Nexletol - bempedoic acid), partnering-off and selling ex-US rights to its lead drug, and lack of a robust product pipeline. In his opinion, ESPR fails to appreciate the nuances of the primary care provider (PCP) market and may be underestimating the level of investment needed to cover the market. For example, management used to suggest that 20-30% gross to net (GTN) was the target, but they have not provided any guidance on GTN recently (and don’t comment on it), so Street analysts may be overestimating sales (the presenter thinks the GTN is closer to 60-70% initially). Also, ESPR’s ability to cover the primary care market is limited given its current salesforce. Given all the risks and potential negative catalysts around COVID-19 that could influence script volume, he believes the path of least resistance is lower for ESPR and targets a $10 fair value.

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Idea Discussion

Commentor 1 - 2 weeks ago

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