Esperion Therapeutics Inc's (NASDAQ:ESPR) cholesterol drug marketing strategy has soured badly, as it has been struggling to sell its heart disease pill for more than a year.

What Happened: The Company says it will cut about 40% of its staff over the next few weeks, or approximately 170 staffers are on the chopping block.

The reductions are expected to save up to $80 million going into 2022.

Esperion thought that with a cheaper pricing strategy, it could beat out the expensive PCSK9s Amgen Inc's (NASDAQ:AMGN) Repatha and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) Praluent.

Launching a heart drug amid the pandemic proved to be a challenge. Patients were seeing their doctors less often, sales forces couldn't travel, and physicians' offices weren't necessarily open to reps even if they could. 

The Company is currently working on a Phase 3 trial dubbed CLEAR Outcomes in cardiovascular patients with statin intolerance and elevated 'bad' cholesterol levels. 

Why It Matters: For FY21, Esperion estimates R&D expenses of $110 to $115 million ($120 - $130 million previously) and SG&A expenses of $195 - $200 million ($200 - $210 million previously).

For FY22, R&D and SG&A expenses are expected to be $100 - $110 million and $120 - $130 million, respectively.

As of September 30, 2021, total cash, cash equivalents, and restricted cash totaled approximately $153.7 million, with interim US sales for the quarter of $10.5 - $11.0 million.

Price Action: ESPR shares closed lower by 3.06% at $8.86 on Monday.

Photo by Gerd Altmann from Pixabay