BofA downgraded Esperion (ESPR) to Neutral from Buy with a price target of $2.50, down from $4, after the company and EU commercial partner Daiichi Sankyo Europe (DSNKY) announced they had reached a settlement in their ongoing milestone litigation. While DSE will pay Esperion $125M, the payment is well below the original $300M milestone and shares are trading down given Esperion’s capital needs along with management’s repeated optimism about the trial’s outcome, the analyst tells investors. Even as the revised payment may disappoint, BofA thinks the deal “overall makes sense,” the analyst added.
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