Esperion Announces Pricing of $85.1 Million Public Offering of Common Stock

Rhea-AI Summary

Esperion Therapeutics, Inc. announced the pricing of its underwritten public offering of 56,700,000 shares of its common stock at a public offering price of $1.50 per share, with expected gross proceeds of approximately $85.1 million. The offering is expected to close on January 23, 2024, and the net proceeds will fund ongoing commercialization efforts, research and clinical development, working capital, capital expenditures, and general corporate purposes.

Insights

Financial Analyst

The public offering of 56.7 million shares by Esperion Therapeutics at $1.50 per share is a significant capital-raising event that merits attention from investors and analysts. The expected gross proceeds of approximately $85.1 million, before fees and expenses, signal a strategic move to strengthen the company's balance sheet. This influx of capital is earmarked for the commercialization of NEXLETOL and NEXLIZET, as well as the development of pipeline candidates, which could potentially enhance the company's revenue streams if these products succeed in the market.

However, the pricing of the offering at $1.50 per share suggests a potential dilution of existing shareholders' equity, which could negatively impact the stock's price in the short term. Investors should closely monitor the post-offering performance of the stock and the company's subsequent utilization of the raised funds. The decision to grant underwriters a 30-day option to purchase additional shares could further dilute equity but also provides a buffer for additional capital if the demand for shares is higher than anticipated.

Market Research Analyst

Esperion's focus on cardiovascular and cardiometabolic diseases addresses a substantial market, given the prevalence of high cholesterol and related health issues globally. The commercialization efforts for NEXLETOL and NEXLIZET are crucial, as they represent Esperion's response to the healthcare industry's shift towards aggressive LDL-cholesterol reduction. The success of these commercialization efforts will largely depend on the company's ability to penetrate a market that is currently dominated by statins and newer treatments like PCSK9 inhibitors.

Understanding the competitive landscape and the differentiation of Esperion's products from existing therapies will be key. Their value proposition, in terms of efficacy, safety and cost, will determine their market uptake. The allocation of funds from this offering towards research and clinical development may also suggest that Esperion is investing in the future of its pipeline, which could be promising for long-term growth, but it comes with the inherent risks of clinical trials and regulatory approvals.

Medical Research Analyst

The therapeutic area that Esperion operates in, specifically the treatment of high cholesterol, is highly competitive and subject to rigorous regulatory standards. The company's mention of ongoing commercialization efforts for NEXLETOL and NEXLIZET indicates that they are past certain regulatory hurdles and are in the phase of market entry and adoption. For stakeholders, the effectiveness of these drugs in reducing LDL-cholesterol levels and their reception by healthcare providers will be critical factors in determining the return on investment.

Furthermore, the allocation of proceeds towards the clinical development of current or additional pipeline candidates is an indication of Esperion's commitment to innovation. However, the risks associated with drug development should not be underestimated, as the path from clinical trials to market success is fraught with both scientific and regulatory challenges. The ability of Esperion to navigate these challenges will be a determining factor in the company's future prospects.

ANN ARBOR, Mich., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Esperion Therapeutics, Inc. (“Esperion”, “we”, “us” or “our”) (Nasdaq: ESPR) announced today the pricing of its previously announced underwritten public offering of 56,700,000 shares of its common stock at a public offering price of $1.50 per share, before underwriting discounts and commissions. All of the shares of common stock are being offered by Esperion. In addition, Esperion granted the underwriters a 30-day option to purchase up to an additional 8,505,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Esperion, are expected to be approximately $85.1 million, excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on January 23, 2024, subject to customary closing conditions.

Jefferies LLC is acting 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. The offering of common stock is being made only by means of a prospectus supplement and accompanying prospectus. Copies of the prospectus supplement and the accompanying prospectus may be obtained, when available, 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.

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. The status quo is not meeting the health needs of millions of people with high cholesterol – that is why our team of passionate industry leaders is breaking through the barriers that prevent patients from reaching their goals. Providers are moving toward reducing LDL-cholesterol levels as low as possible, as soon as possible; we provide the next steps to help get patients there. Because when it comes to high cholesterol, getting to goal is not optional. It is our life’s work. For more information, visit esperion.com and esperionscience.com and follow us on Twitter at twitter.com/EsperionInc.

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 terms, timing and completion of the proposed public offering, the satisfaction of customary closing conditions related to the proposed public offering and the intended use of proceeds from the proposed 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, among others: fluctuations in Esperion’s stock price, changes in market conditions, the completion of the public offering on the anticipated terms or at all, and 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.

Esperion Contact Information:
Investors:
Alexis Callahan
investorrelations@esperion.com
(406) 539-1762

Media:
Tiffany Aldrich
corporateteam@esperion.com
(616) 443-8438

FAQ

What is the pricing of Esperion Therapeutics' underwritten public offering?

Esperion Therapeutics' underwritten public offering is priced at $1.50 per share for 56,700,000 shares of its common stock.

How many shares are being offered by Esperion Therapeutics?

Esperion Therapeutics is offering all of the 56,700,000 shares of common stock.

What is the expected gross proceeds from the offering?

The expected gross proceeds from the offering are approximately $85.1 million.

When is the expected closing date of the offering?

The offering is expected to close on January 23, 2024.

What will the net proceeds from the offering be used for?

The net proceeds from the offering will be used for ongoing commercialization efforts, research and clinical development, working capital, capital expenditures, and general corporate purposes.