Esperion Therapeutics, Inc. (NASDAQ: ESPR) has posted upbeat results for the first quarter of 2022. Following the results, shares of the company rose 14%. The stock, however, slipped 2% in the extended trading session.
The company engages in the development and commercialization of oral therapies for the treatment of patients with elevated low-density lipoprotein cholesterol.
Results in Detail
Esperion reported a net loss of $0.93 per share against a net loss of $3.50 in the same quarter last year. Revenues rose 135% year-over-year to $18.8 million and surpassed the Street’s estimate of $15.4 million.
U.S. product revenue more than doubled to $13.4 million. Royalty revenue for the first quarter came in at $1.1 million, up 83% year-over-year. Further, with support from launches in Belgium, Switzerland, and the Netherlands and continued growth in previously launched territories, royalty and partner revenue grew 244%.
The company incurred R&D expenses of $24.3 million in the quarter, down 13% year-over-year. Also, SG&A expenses decreased 50% to $30.4 million on the back of savings from the transformative plan implemented in the fourth quarter of 2021 as well as a $13.3 million one-time charge associated with a legal settlement in the first quarter of 2021.
The President and CEO of Esperion, Sheldon Koenig, said, “Looking ahead to what will be a significant year for Esperion, we continue to anticipate achieving 100% MACE accumulation during the second half of this year, with a topline readout in the first quarter of 2023.”
Outlook
For full-year 2022, the company expects R&D expenses between $100 million and $110 million. SG&A expenses are anticipated to be in the range of $120 million to $130 million.
Further, the company anticipates operating expenses in the range of $220 million to $240 million, including $25 million of non-cash, stock-based compensation expenses.
Stock Rating
Following the release of the first-quarter results, Needham analyst Serge Belanger maintained a Buy rating on Esperion with a price target of $12, implying 83.8% upside potential from current levels.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on five Buys, one Hold and one Sell. Esperion’s average price target of $12.92 implies 97.9% upside potential to current levels.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence of hedge funds in Esperion is currently Very Positive, as the cumulative change in holdings across all five hedge funds that were active in the last quarter was an increase of 6.3 million shares.
Conclusion
Esperion has performed decently in the recently reported quarter. Further, the positive sentiments of hedge funds, investors who hold portfolios on TipRanks’ Smart Portfolio and bloggers keep us optimistic.
Also, the company currently has a beta of 0.42. Beta helps in understanding how volatile a stock is in comparison to the market. A Beta closer to 0 is more desirable. Therefore, interested investors may want to take a closer look at the stock.
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