ANN ARBOR, Mich. - Esperion (NASDAQ:ESPR) Therapeutics (NASDAQ: ESPR), a pharmaceutical company with a market capitalization of approximately $485 million and impressive revenue growth of 187% over the last twelve months, has secured a $150 million senior secured term loan and issued $100 million in new convertible notes, as part of a strategic financial restructuring aimed at repaying a significant portion of its existing $265 million convertible debt. The loan facility is led by Athyrium Capital Management and joined by HealthCare Royalty. According to InvestingPro data, the company maintains a healthy current ratio of 1.85, suggesting adequate liquidity for its operations.
The company announced on Wednesday that the proceeds from the loan and around $60 million from the new notes will be used to repay $210 million of the existing debt. The remaining funds are earmarked for operational cash. This move is expected to extend the maturity of the debt by at least five years, enhancing Esperion's financial flexibility and allowing the company to focus on growing its cholesterol-lowering drugs, NEXLETOL® and NEXLIZET®. With a strong gross profit margin of 63.64% and an overall financial health score rated as "GOOD" by InvestingPro, the company appears well-positioned to execute its growth strategy.
The loan carries an interest rate of 9.75% if paid in cash or 11.75% if paid in-kind. The new convertible notes will pay 5.75% interest per annum and mature on June 15, 2030, with conversion rights under certain conditions. The initial conversion rate is set at approximately $3.06 per share of common stock.
Laurent D. Hermouet, Partner at Athyrium, expressed confidence in Esperion's strategy and its potential to create long-term value. J. Wood Capital Advisors LLC and Gibson, Dunn & Crutcher LLP advised Esperion on the transaction.
Esperion's commitment to developing and commercializing medicines for cardiovascular and cardiometabolic diseases is underscored by this financial restructuring. The company aims to meet the health needs of millions of people with high cholesterol, providing alternatives for those who cannot take statin therapy. While analysts anticipate sales growth in the current year, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, which provide expert analysis on over 1,400 US stocks.
This financial maneuver is based on a press release statement from Esperion Therapeutics.
In other recent news, Esperion Therapeutics has seen a surge in revenue growth by 187% year-over-year to $295.45 million, driven by an increase in uptake of its cholesterol-lowering drugs Nexletol and Nexlizet. Goldman Sachs (NYSE:GS) has resumed its coverage of the biopharmaceutical company, assigning a Neutral rating and a price target of $4.00, reflecting recent developments. Cantor Fitzgerald also initiated coverage with an Overweight rating, pointing to the strong potential of Esperion's products.
On the international front, Esperion secured a licensing agreement with Neopharm Israel, gaining exclusive rights to commercialize Nexletol and Nexlizet in Israel, Gaza, and the West Bank. This move aligns with the company's broader international growth strategy.
Esperion has also submitted New Drug Submissions to Health Canada for Nexletol and Nexlizet, while its partner, Otsuka Pharmaceutical (TADAWUL:2070) Co., submitted a New Drug Application to the Japanese Ministry of Health, Labour and Welfare for bempedoic acid. These strategic moves have been positively received by H.C. Wainwright, which maintained a Buy rating for Esperion.
Lastly, financial performance for the third quarter of 2024 showed a 53% year-over-year increase in U.S. net product revenue, totaling $31.1 million, and a total revenue rise to $51.6 million, up from $34 million the previous year. These developments underscore Esperion's ongoing efforts to expand its global reach and enhance its product offerings.
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