Credit Suisse Downgrades Esperion Therapeutics (ESPR) to Neutral

Credit Suisse analyst Judah Frommer downgraded Esperion Therapeutics (NASDAQ: ESPR) from to Neutral with a price target of $11.00 (from $28.00).

The analyst comments "Following a challenged launch for bempedoic acid during the Covid-19 pandemic, along with administrative complications borne out of preauthorization requirements for many prescriptions, Esperion communicated a shift in strategy to align operational and expense structures and better position the company for future growth. We do see potential for Esperion to improve the efficiency of its operations and incrementally capture eligible (non-optimized/statin intolerant/diabetic) patients as the company pushes its reimbursement/pricing practices forward, particularly post-CVOT. That said, the company has vocalized the need to cut costs across the organization and, at the same time, Nexletol/Nexlizet script trends indicate continued lackluster growth. The key value driver for the company remains the CLEAR Outcomes study results (on track for Q1 2023, 75% of MACE-4 events completed to-date). Given management’s tepid expectations for a material near-term inflection in BA sales and the increased likelihood of a dilutive financing, we reduce our BA franchise sales projections (underscored by an interactive Rx model of Rx thru 2022 – discussed below) and look toward the CVOT readout (and/or Rx improvement). We take our rating to NEUTRAL and our 12-month TP to $11 (from $28)."

For an analyst ratings summary and ratings history on Esperion Therapeutics click here. For more ratings news on Esperion Therapeutics click here.

Shares of Esperion Therapeutics closed at $9.14 yesterday.

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