Esperion Therapeutics, Inc. has delivered an impressive performance in the first quarter of 2024, showcasing the strength and potential of its non-statin cholesterol-lowering medications. The company reported total revenue of $137.7 million, a significant increase of 467% year-over-year. This impressive growth was driven by a combination of strong product sales and substantial collaboration revenue.

Financials

The company's net product sales in the U.S. reached $24.8 million, representing a 46% increase compared to the same period in the prior year. This growth was primarily attributed to a 43% increase in retail prescription equivalents. Esperion's collaboration revenue, which includes royalties and partner revenue, surged to $113.0 million, a remarkable 1,148% year-over-year increase. This substantial growth was largely due to a $100 million litigation-related settlement received from Daiichi Sankyo Europe GmbH (DSE) in January 2024.

Esperion's financial performance in the first quarter of 2024 was further bolstered by its cost management efforts. The company's cost of goods sold decreased by 14% year-over-year, driven by lower unit tablet costs for sales in the U.S. and supply to its international partners. Research and development expenses also declined by 57% year-over-year, reflecting the substantial reduction in costs following the completion of the CLEAR Outcomes trial. However, selling, general, and administrative expenses increased by 40% year-over-year, as the company ramped up its in-house sales force, provided bonuses, and increased promotional costs in anticipation of the launch of the expanded labels for NEXLETOL and NEXLIZET.

The company's strong financial performance has resulted in a robust balance sheet, with cash and cash equivalents totaling $226.6 million as of March 31, 2024. This solid financial position provides Esperion with the necessary resources to support its commercial operations and drive continued long-term growth.

Recent Developments

One of the key highlights of the quarter was the FDA's approval of broad new labels for NEXLETOL and NEXLIZET in March 2024. These expanded indications include cardiovascular risk reduction and enhanced LDL-cholesterol lowering in both primary and secondary prevention patients. This is a significant milestone for Esperion, as NEXLETOL and NEXLIZET are now the only LDL-lowering non-statin drugs approved for cardiovascular risk reduction in both primary and secondary prevention patients. Additionally, the new labels allow for the use of these medications with or without a statin.

The expanded labels are expected to significantly broaden Esperion's addressable patient population, which the company estimates to be more than 70 million in the U.S. alone. This represents a substantial opportunity for the company to reach a larger number of patients who are unable or unwilling to take recommended statin therapy, a group known as the "statin gap."

International Expansion

Esperion's international expansion efforts also continued to progress during the quarter. The company's partner, DSE, delivered strong sales growth in its territories, highlighting the global potential of Esperion's franchise. As of the end of February 2024, approximately 255,000 patients have been treated with Esperion's therapies in Europe, representing a sequential 3-month growth of 26% since November 2023.

Furthermore, Esperion's Asia region partner, Daiichi Sankyo Company Limited, gained approvals for NEXLETOL and NEXLIZET in Myanmar and Thailand during the first quarter of 2024, further expanding the company's international footprint.

Outlook

Looking ahead, Esperion remains confident in its ability to continue driving patient and shareholder impact. The company has reiterated its 2024 expense guidance, expecting research and development expenses to be between $45 million and $55 million, selling, general, and administrative expenses to be between $180 million and $190 million, and total operating expenses to be between $225 million and $245 million.

Conclusion

Esperion's strong financial performance, expanded indications, and global growth potential position the company for long-term success. The company's commitment to lowering LDL-cholesterol and cardiovascular risk through innovative medicines and their combinations with established therapies continues to drive its progress. Investors can look forward to Esperion's continued execution and value creation in the quarters and years ahead.