Esperion Is An Acquisition Target. Very Favorable New Debt Terms For Investors Offers Excellent Buying Opportunity 10x Upside Potential. Profitable in 2025.
$Esperion Therapeutics (ESPR.US) is the only pharmaceutical company with statin alternative medications Nexletol & Nexlizet for primary prevention with compounding monthly script growth in a massive market space, 21M Americans need statin alternative medications, either due to statin intolerance or need additional LDLC lowering. ESPR now has $188M cash on its books, up from $145M. The new $250M debt is very favorable for shareholders and makes it easy for an acquisition. The old $265M debt, which $210M paid off, remains $55M at 4% interest ($2.2M) and will be paid in full 11/2025 maturity, going forward ESPR will pay $9.7M more in interest payments, total new debt interest yearly payments are $20,375,000 starting 2025 ($100M at 5.75%) ($150M at 9.75%).
The very good news is that $140M will have been paid by OTSUKA for 2025 along with new royalties that will flow in. The great news is cost of goods expenses are removed by ESPR partner DSE taking over product manufacturing, savings will equal a minimum of $5.96 per script cost savings X current DSE's 475,000 scripts X 12 months. DSE should have over 600k scripts by the end of 2025. So, the cost of good savings is estimated at a minimum of $33.9M for a full year, but expected mid year change over to DSE manufacturing, estimating a minimum of $17M in savings for 2025. Esperion will have a strong profitable 2025. The year-end stock price range is estimated from $7 to $9. New markets, CANADA, ISRAEL & AUSTRALIA, should generate revenues in 2025.
Esperion has now increased as an excellent merger & acquisition candidate based on the new debt structure deal. It is very favorable for investors, along with making it easier for an acquisition. The $150M loan was deliberately arranged as non dilutive with Athyrium Capital Management who funded the entire $150M, while the $100M loan is dilutive at $3.06 equal to 32,679,740 shares, and only dilutive after 12/20/2027 as long as the stock price has closed 130% above $3.06 which is $7.04 a share for 41 trading days. Potential offers could arise in early 2025, and both Needham & Jefferies analysts anticipate offers for Esperion. ESPR has enormous growth potential, having the only primary prevention labels. Omers royalty deal with DSE will 100% divert back to Esperion after $516M has been paid from DSE to Omers, expected in 2028. esperion.com/ne...
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