Esperion(US:ESPR)2025-05-08 13:01Financial Performance - The net loss for the three months ended March 31, 2025, was $40.5 million, compared to a net income of $61.0 million for the same period in 2024, primarily due to collaboration revenue from a settlement agreement[160]. - Product sales, net for Q1 2025 were $34.9 million, an increase of approximately $10.1 million from $24.8 million in Q1 2024, driven by prescription growth of NEXLETOL and NEXLIZET[181]. - Collaboration revenue for Q1 2025 was $30.1 million, a decrease of $82.9 million from $113.0 million in Q1 2024, primarily due to a Settlement Agreement with DSE in Q1 2024[182]. - Cost of goods sold for Q1 2025 increased to $31.5 million from $10.1 million in Q1 2024, an increase of approximately $21.4 million, attributed to increased product sales and production-related write-offs[183]. - Net cash used in operating activities for Q1 2025 was $22.6 million, compared to $53.8 million provided in Q1 2024, reflecting increased commercialization costs[196]. Research and Development - Research and development expenses for the three months ended March 31, 2025, were $4.0 million, up from $1.5 million for the same period in 2024[166][167]. - The company plans to begin a Phase III pediatric trial and continue progressing its preclinical pipeline, anticipating increased research and development expenses in 2025[173]. - Research and development expenses for Q1 2025 were $12.6 million, a decrease of $0.8 million from $13.4 million in Q1 2024, mainly due to reduced compensation costs[184]. Regulatory and Market Developments - The FDA approved expanded indications for NEXLETOL and NEXLIZET in March 2024, enhancing their market potential[157]. - Otsuka filed a New Drug Application in Japan for bempedoic acid in November 2024, with expected approval in the second half of 2025[158]. Expenses and Financing - Selling, general and administrative expenses for Q1 2025 were $43.0 million, an increase of $1.0 million from $42.0 million in Q1 2024, primarily due to higher consulting and marketing costs[185]. - Interest expense for Q1 2025 was $19.4 million, up $5.4 million from $14.0 million in Q1 2024, mainly due to interest on the term loan[186]. - Future payments under the $150.0 million term loan include annual interest of approximately $14.6 million and principal repayments starting in 2028[201]. - The company expects to incur ongoing expenses and operating losses in the near term, necessitating additional financing to support operations and product development[160]. - The company expects to incur operating losses in the near term while commercializing NEXLETOL and NEXLIZET, relying on collaborations and potential milestone payments for funding[207]. - Future funding requirements will depend on various factors, including the ability to generate product revenues and establish favorable collaboration agreements[208]. Cash and Investments - As of March 31, 2025, cash and cash equivalents totaled $114.6 million, with investments in highly liquid, interest-bearing securities[193]. - The company repurchased Revenue Interests under the RIPA for $343.8 million, eliminating future payment obligations under this agreement[203]. - In January 2024, the company completed an offering of 56.7 million shares at $1.50 per share, raising approximately $90.7 million after expenses[204]. - The company has a Controlled Equity Offering Sales Agreement allowing for the issuance of up to $70.0 million in shares, although no shares were issued in the three months ended March 31, 2025[205]. - A Registered Direct Offering in March 2023 raised approximately $51.3 million after expenses, with additional proceeds of $5.8 million from warrant exercises in the three months ended March 31, 2024[206]. Risks and Market Conditions - Key risks include the successful development of products, debt maturity payments, and the establishment of favorable collaboration arrangements[211]. - There have been no material changes in market risk disclosures since the last annual report[210]. - The company currently has no off-balance sheet arrangements as defined by SEC rules[209].