Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$2.12Last close (May 6, 2024)
Post-Earnings Price$2.38Open (May 7, 2024)
Price Change
$0.26(+12.26%)
- The recent FDA approval of broad new labels for NEXLETOL and NEXLIZET expands the addressable patient population to approximately 70 million in the U.S., with the company focusing on 30 million patients who are actively engaged in therapy, representing a significant market opportunity for growth.
- Positive initial momentum following the label update, including strong enthusiasm from both primary care physicians and cardiologists, early week-over-week prescription growth, and increased consumer awareness through targeted campaigns (e.g., the "Lipid Lurkers" campaign with over 1.6 million exposures), suggests a significant acceleration in product growth in upcoming quarters.
- Favorable payer interactions, with utilization management criteria being updated to include primary prevention patients and ease statin requirements, as well as improving Medicare coverage (coverage now close to 50%), expanding access to the drug without significant additional concessions, which could lead to increased sales and maintain margins.
- Flat prescription growth since label update: Scripts have remained generally flat over the last month, with only modest week-over-week growth of 1% to 5%, indicating a delayed re-acceleration of prescription growth despite the new label. The company expects progressive increases over the next 1-2 quarters as payer utilization management criteria are updated, suggesting significant growth may take time. ,
- Medicare coverage has lagged behind commercial coverage: While the company has made some progress, with one large Medicare payer updating its utilization management criteria, broader Medicare coverage is expected to be achieved over the next 2 quarters. This lag may limit access for Medicare patients and impact near-term sales growth.
- Limited immediate market for patients completely unable to take statins: The actual population of patients who are completely unable or unwilling to take statins is around 10%, smaller than the total potential patient population. While the company aims to address patients who cannot escalate their statin dose, the immediate market for patients who cannot take statins at all may be limited, potentially impacting the uptake of the drug.
Research analysts covering Esperion Therapeutics.