Credit Suisse Downgrades Esperion Therapeutics (ESPR) to Underperform

Credit Suisse downgraded Esperion Therapeutics (NASDAQ: ESPR) from Neutral to Underperform with a price target of $10.00 (from $23.00) after the company's update on the development plans for bempedoic acid leave them increasingly concerned about the product's outlook in the US market.

Analyst Vamil Divan commented, "We are surprised that the FDA may not be willing to allow LDL-C as a surrogate endpoint for initial approval but believe there will be significant pressure (and limited upside) on ESPR shares until that certainty is obtained, and that process may take years to play out. We downgrade the stock to Underperform (from Neutral) on this added uncertainty and lower our target price to $10 (from $23). Our loss per share estimates for 2016 changes to - $3.05 from -$3.71; mainly due to fluctuations in how we model how the company will need to spend and fund the Phase 3 program. We do not expect ESPR to be profitable on a continuing basis until 2024."

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 $16.18 yesterday.

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