Esperion confident in pending suit against Daiichi, says Morgan Stanley

Morgan Stanley analyst Jeffrey Hung keeps an Equal Weight rating on Esperion Therapeutics after the company disclosed that its partner Daiichi Sankyo does not believe Esperion is eligible to receive any milestone payments following the recent CLEAR Outcomes data. Esperion is eligible for up to $300M from Daiichi based on magnitude of risk reduction included in an updated European Union label, expected in early 2024, the analyst tells investors in a research note. Esperion plans to file a lawsuit in the next few days, the analyst notes after speaking to management. The company’s outside counsel is highly confident that this is "an open and shut case" that can be resolved in the next 3-4 months, as the contract does not reference "MACE-4" or "primary endpoint" but rather cardiovascular risk reduction, the firm adds. It expects Esperion shares to remain volatile and under pressure ahead of visibility towards a resolution.