ANN ARBOR, Mich. - Esperion (NASDAQ:ESPR) Therapeutics (NASDAQ:ESPR), a pharmaceutical company with impressive revenue growth of 187% over the last twelve months according to InvestingPro data, announced on Thursday a licensing agreement with Neopharm Israel, granting exclusive rights to commercialize its cardiovascular drugs NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid and ezetimibe) in Israel, Gaza, and the West Bank. The deal includes an upfront payment, near-term milestones, and tiered royalties on product sales.
Esperion, currently valued at $530 million in market capitalization, will receive a one-time upfront cash payment within thirty days of the agreement's signing, and another payment following the Marketing Approval and inclusion in the National Healthcare Reimbursement Basket in Israel. Additionally, Esperion will earn royalties on net sales in the territory. With a strong gross profit margin of 63.6%, the company demonstrates solid operational efficiency. InvestingPro subscribers have access to 8 more key insights about Esperion's financial performance and outlook.
Neopharm Israel, with over 80 years of experience in the pharmaceutical industry, will be responsible for the commercialization of the drugs. The company is known for its successful track record in introducing new therapies to the Israeli market.
NEXLETOL and NEXLIZET are prescribed to reduce LDL-cholesterol (LDL-C) levels and the risk of cardiovascular events in adults who cannot take statins. They are also used as an adjunct to diet for patients with primary hyperlipidemia, including heterozygous familial hypercholesterolemia (HeFH).
Sheldon Koenig, President and CEO of Esperion, expressed satisfaction with the partnership, emphasizing Neopharm's established history in successfully marketing innovative medicines in Israel. Efi Shnaidman, CEO at Neopharm, echoed the sentiment, noting the potential impact of the drugs on Israeli patients at risk of heart attacks and cardiovascular disease.
The licensing agreement expands Esperion's global reach and supports its mission to address cardiovascular and cardiometabolic diseases. According to InvestingPro's comprehensive analysis, the company maintains a GOOD overall financial health score, suggesting solid fundamentals despite current market challenges. The announcement is based on a press release statement from Esperion Therapeutics.
In other recent news, Esperion Therapeutics continues to make significant strides in the pharmaceutical industry. The firm's recent earnings results reveal a 53% year-over-year increase in U.S. net product revenue, totaling $31.1 million in the third quarter of 2024, and a total revenue rise to $51.6 million, up from $34 million in the previous year. This growth was driven by the expansion of their product labels, strategic partnerships, and an expansion of payer coverage to over 165 million patient lives.
Moreover, Esperion has submitted New Drug Submissions to Health Canada for two cholesterol-lowering medications, NEXLETOL and NEXLIZET. These recent developments have been noted by H.C. Wainwright, which reaffirmed its positive stance on Esperion, maintaining a Buy rating and a $16.00 price target for the company's stock.
Furthermore, Esperion's partner, Otsuka Pharmaceutical (TADAWUL:2070) Co., Ltd., has submitted a New Drug Application (NDA) to the Japanese Ministry of Health, Labour and Welfare for bempedoic acid, intended for patients with hypercholesterolemia and familial hypercholesterolemia. The company also anticipates potential regulatory filings or partnerships in Australia and Israel in the first half of 2025.
These strategic moves are part of Esperion's broader international growth strategy, which also emphasizes its commitment to commercial development. Investors should keep a close eye on the company's performance in the coming months.
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