Esperion Price Target Cut At Citi On U.S. Approval Likelihood

Esperion Therapeutics Inc ESPR announced that the FDA had not agreed to LDL as an approvable surrogate endpoint for the company’s cholesterol agent bempedoic acid. Citi’s Joel Beatty maintained a Buy rating on the company, while reducing the price target from $36 to $22. The analyst said that US approval was unlikely until 2023.

Despite the FDA-related disappointment, the decline of about 30 percent in shares after market close appears to be an overreaction, analyst Joel Beatty mentioned.

Upcoming Catalysts: Unlikely To Impact Stock Significantly

Topline results for bempedoic acid in combination with a high dose statin, expected in September, and outcomes results for PCSK9 and CETP inhibitors, likely in 1H17, are the most notable catalysts over the next 12 months. “We don’t expect these catalysts to have more than a moderate impact on ESPR stock,” Beatty stated.

“We believe the worst result for ESPR would be success of the remaining CETP inhibitor anacetrapib, as this would be a significant competitor, could set the bar higher for outcomes results, and make the FDA even more likely to require outcomes data for bempedoic acid in our view, because there would be lower unmet need,” the analyst wrote.