On Tuesday, Cantor Fitzgerald initiated coverage on Esperion (NASDAQ:ESPR) Therapeutics, a biopharmaceutical company, with an Overweight rating and a price target of $8.00. The firm pointed out the company's marketing of NEXLETOL and NEXLIZET, which are oral ATP-citrate lyase inhibitors used for lowering LDL cholesterol and reducing cardiovascular risk. Currently trading at $2.33, the stock has experienced a significant 23% decline over the past week, according to InvestingPro data.
Esperion Therapeutics shares have experienced a downturn due to competitive pressures from a CETP inhibitor known as obicetrapib, which is under development by another company and has shown positive Phase 3 results.
Despite this, Cantor Fitzgerald believes that the market is overlooking the proven pathway and established effects on lipid metabolism of Esperion's products, NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid + ezetimibe). The company has demonstrated strong commercial execution, with InvestingPro data showing impressive revenue growth of 187% in the last twelve months and a healthy gross margin of 64%.
The analyst from Cantor Fitzgerald emphasized that while there is uncertainty about how obicetrapib will perform in future outcomes trials, Esperion's drugs operate in a validated pathway with well-characterized effects on lipid metabolism. This distinction, according to the analyst, presents an attractive opportunity for investors, especially considering the current valuation of Esperion's shares, which are trading at less than 0.5% of their potential peak revenues.
The Overweight rating suggests that Cantor Fitzgerald sees the company's stock as a better value than the average stock in the analyst's coverage universe. The $8.00 price target indicates a significant potential upside from the current trading level of Esperion Therapeutics on the NASDAQ.
Esperion Therapeutics focuses on developing and commercializing oral therapies for the treatment of patients with elevated low-density lipoprotein cholesterol (LDL-C). With this new coverage and positive outlook from Cantor Fitzgerald, investors may take a renewed interest in the company's stock performance and future prospects.
According to InvestingPro, analyst price targets range from $2.05 to $16.00, with multiple additional insights and metrics available through the platform's comprehensive Pro Research Report, which provides deep-dive analysis of over 1,400 US stocks.
In other recent news, Esperion Therapeutics has experienced a series of significant developments. The pharmaceutical company announced a licensing agreement with Neopharm Israel, granting exclusive rights to commercialize its cardiovascular drugs NEXLETOL and NEXLIZET in Israel, Gaza, and the West Bank. Additionally, Esperion has seen a 53% year-over-year increase in U.S. net product revenue, totaling $31.1 million in the third quarter of 2024, and a total revenue rise to $51.6 million, up from $34 million the previous year.
Esperion has also submitted New Drug Submissions to Health Canada for NEXLETOL and NEXLIZET, and its partner, Otsuka Pharmaceutical (TADAWUL:2070) Co., Ltd., has submitted a New Drug Application to the Japanese Ministry of Health, Labour and Welfare for bempedoic acid. The company's performance and strategic moves have been positively received by H.C. Wainwright, which maintained a Buy rating for Esperion.
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