Esperion Announces Closing of Public Offering of Common Stock and Exercise in Full of Underwriters’ Option to Purchase Additional Shares
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Insights
Esperion's recent closure of its underwritten public offering, resulting in approximately $97.8 million in gross proceeds, is a significant liquidity event for the company. The decision by the underwriters to exercise their option to purchase additional shares at $1.50 each suggests a vote of confidence in Esperion's financial prospects and its products, NEXLETOL and NEXLIZET. The capital raised is earmarked for commercialization efforts, which are critical for generating revenue and achieving profitability. The funding will also support research and development, which is vital for pipeline sustainability. Investors should note that the dilutive effect of this offering could potentially lower earnings per share in the short term, but the investment in commercialization and R&D could yield positive long-term outcomes.
The pharmaceutical market is highly competitive and the success of new drugs like NEXLETOL and NEXLIZET hinges on effective commercialization strategies. Esperion's allocation of funds from the public offering towards these efforts indicates a strategic focus on market penetration. The company's ability to effectively utilize the capital to differentiate its products in the crowded cholesterol management market is crucial. Additionally, the investment in the clinical development of pipeline candidates shows a commitment to future growth. Market trends favor innovative treatments with improved efficacy and safety profiles and Esperion's progress in these areas will be closely monitored by investors and competitors alike.
NEXLETOL and NEXLIZET are part of a newer class of cholesterol-lowering treatments and their continued development and successful commercialization could provide valuable alternatives to patients who are statin-intolerant or require additional lipid-lowering effects. The funding from the public offering is expected to support ongoing clinical trials, which are essential for demonstrating safety and efficacy. The outcomes of these trials will be critical in determining the drugs' market potential and regulatory success. As such, the allocation of proceeds towards these ends is a strategic move to solidify Esperion's position in the cardiovascular treatment landscape.
ANN ARBOR, Mich., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Esperion Therapeutics, Inc. (“Esperion”, “we”, “us” or “our”) (Nasdaq: ESPR) announced today the closing of its previously announced underwritten public offering of 65,205,000 shares of its common stock, including 8,505,000 shares of its common stock pursuant to the underwriters’ exercise in full of their option to purchase additional shares of common stock, at the public offering price of
Jefferies LLC acted as sole book-running manager for the offering.
Esperion intends to use the net proceeds from the offering of common stock, together with its existing cash and cash equivalents, to fund the ongoing commercialization efforts for NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid and ezetimibe), research and clinical development of current or additional pipeline candidates, working capital, capital expenditures, and general corporate purposes.
A registration statement relating to the offering of common stock has been filed with the Securities and Exchange Commission (“SEC”) and was declared effective on April 26, 2022. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on January 22, 2024. Copies of the final prospectus supplement and the accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at 877-821-7388, or by email at prospectus_department@jefferies.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Esperion Therapeutics
At Esperion, we discover, develop, and commercialize innovative medicines to help improve outcomes for patients with or at risk for cardiovascular and cardiometabolic diseases. We are focused on developing and commercializing accessible, oral, once-daily, non-statin medicines for patients struggling with elevated low-density lipoprotein cholesterol, or LDL-C. Through commercial execution and completion of our global cardiovascular outcomes trial as well as advancing our pre-clinical pipeline, we continue to evolve into a differentiated, global cardiometabolic biotech.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws, including, without limitation, statements related to the intended use of proceeds from the public offering. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties, including the risks detailed in Esperion’s filings with the SEC, including in our most recent Annual Report on Form 10-K and in subsequent filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and Esperion disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, other than to the extent required by law.
Contact
Investors:
Alexis Callahan
Investorrelations@esperion.com
(406) 539-1762
Media:
Tiffany Aldrich
corporateteam@esperion.com
(616) 443-8438
FAQ
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