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Esperion Therapeutics, Inc. (ESPR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $82.4M, up 12% Y/Y; U.S. net product revenue grew 42% Y/Y to $40.3M, and total retail prescription equivalents rose 10% Q/Q, reflecting accelerating adoption and stronger access dynamics .
  • EPS was -$0.02 vs Wall Street consensus of -$0.16, a significant beat driven by both higher U.S. net sales and collaboration revenue; operating income from ongoing business was ~$15.0M (first in company history) (*Values retrieved from S&P Global).
  • Europe performance remained strong: royalty revenue rose 30% sequentially to $13.6M; Daiichi Sankyo surpassed 500,000 patients treated in Europe, with multiple tech transfer processes advancing .
  • Guidance: FY25 OpEx reiterated at $215–$235M; management now expects sustainable profitability beginning Q1 2026. Additional catalysts include expected Otsuka milestone payments up to $120M in H2 2025 and three ANDA settlements restricting generics until 2040 .

What Went Well and What Went Wrong

What Went Well

  • Commercial execution strengthened: scripts up 10% Q/Q, prescribers >28,000; digital-only prescribers accounted for 23% of prescriptions, evidencing omni-channel effectiveness (“Can’t take a statin? Make NEXLIZET happen!”) .
  • First quarter of operating income (~$15.0M) from ongoing operations, validating leverage from revenue growth and expense discipline .
  • International momentum: Europe royalty revenue +30% Q/Q to $13.6M; partner patient count surpassed 500,000, supporting durable royalty/milestone trajectory .

What Went Wrong

  • GAAP net loss persisted (-$4.8M) despite operating income; interest expense elevated ($20.5M), reflecting capital structure costs .
  • Collaboration revenue down ~7% Y/Y due to lapping prior-year DSE settlement milestones; headline Y/Y comparisons masked underlying >100% growth ex-milestones .
  • Cash declined to $86.1M from $144.8M at year-end, while balance sheet remains encumbered by royalty sale liability ($295.9M) and long-term/convertible debt balances .

Financial Results

Income Statement Overview (GAAP)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$69.113 $64.995 $82.385
Net Income ($USD Millions)$(21.318) $(40.455) $(4.791)
EPS ($USD)$(0.11) $(0.21) $(0.02)
Income from Operations ($USD Millions)$(4.420) $(22.096) $15.029
Operating Margin (%)-6.4% (calc from )-34.0% (calc from )18.2% (calc from )

Notes: Operating margin computed as income from operations divided by total revenue using cited figures .

Revenue Breakdown

Revenue ComponentQ4 2024Q1 2025Q2 2025
Product sales, net ($USD Millions)$31.561 $34.913 $40.274
Collaboration revenue ($USD Millions)$37.552 $30.082 $42.111
U.S. net product revenue ($USD Millions)$31.6 $34.9 $40.3

KPIs

KPIQ4 2024Q1 2025Q2 2025
Retail Rx equivalents growth (Q/Q)+12% +2% scripts Q/Q (flat market) +10%
Prescribers (#)>25,000 —>28,000
Digital-only share of prescriptions——23%
Prior auth approval rates (targeted prescribers)——>80% overall; CVS 93%, Aetna 94%
Europe royalty revenue ($USD Millions)$9.7 $10.5 $13.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating Expenses (OpEx)FY 2025$215–$235M $215–$235M Maintained
Sustainable ProfitabilityCompanyNot explicitly statedBeginning Q1 2026 Introduced/Clarified
Otsuka Milestone PaymentsH2 2025Not previously quantifiedUp to $120M expected in H2 2025 Introduced
Japan Approval & Pricing2H 2025On track 2H 2025 On track 2H 2025 Maintained
Canada NDS ApprovalQ4 2025Q4 2025 expected Q4 2025 expected Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Digital omni-channel + consumer marketingBuilding prescriber base; payer access expanded; DOD formulary addition 23% prescriptions via digital-only touchpoints; statin intolerance campaign and upcoming connected TV ads Strengthening
Payer coverage / prior auth>173M lives updated criteria by Q4; Q1 added >30 plans improvements Approval rates >80%; CVS 93%, Aetna 94%; field reimbursement team expanded Improving
International royalties & tech transferDSE royalty $9.7M (Q4); $10.5M (Q1); Otsuka JNDA submission milestone noted in Q4 DSE royalty $13.6M (+30% Q/Q); tech transfer to DSE advancing; Otsuka approval/pricing on track H2’25 Accelerating
Gross-to-net and IRA effectsNoted structural shifts beginning 2025 “Steady state” gross-to-net post-IRA; favorable tailwind in 2025 Stabilizing/Favorable
R&D execution (PSC program)Announced PSC program; minimal R&D spend; expansion plans PSC IND-enabling continuing; low cost; IND targeted for 2026 On track
IP/legalLitigations/structure reshaped in 2024 Three ANDA settlements delay generics to 2040; additional cases ongoing Risk reduced (partial)

Management Commentary

  • “We’re thrilled to report a standout second quarter… and our first quarter of operating income from ongoing business.” — Sheldon Koenig, President & CEO .
  • “Our tagline, ‘Can’t take a statin? Make NEXLIZET happen,’ was well received… 23% of prescriptions were written by physicians with only digital touch points.” — Sheldon Koenig .
  • “We expect to receive milestone payments of up to $120,000,000 [from Japan]… the royalties on Japanese product sales will be a major revenue contributor over time.” — Sheldon Koenig .
  • “True benefits from the tech transfer will kick in early next year… steady favorable gross-to-net [post-IRA] seen in Q1 and Q2.” — Ben Halliday, CFO .

Q&A Highlights

  • Access dynamics: Approval rates >80% nationwide; removal of prior auths at key payers (CVS 93%, Aetna 94%); 192M lives aligned to new label, supporting script growth .
  • Working capital: DSE manufacturing tech transfer reduces Esperion inventories in 2H 2025; DSE ramps in 2026 .
  • Consensus and milestones: Tracking ahead of consensus in Q2; confident in up to $120M Otsuka milestone payments H2 2025 (tiered thresholds) .
  • Margin trajectory: More visible benefits to gross margin expected in 2026 with tech transfer; gross-to-net tailwinds stable in 2025 .
  • Competitiveness vs future orals: Only product with statin-intolerance outcomes and primary prevention indication; patent settlements support longevity to 2040 .

Estimates Context

Results vs Wall Street consensus (S&P Global):

MetricQ4 2024Q1 2025Q2 2025
Revenue Estimate ($M)61.583*54.188*63.049*
Revenue Actual ($M)69.113 64.995 82.385
EPS Estimate ($)-0.1575*-0.15*-0.16*
EPS Actual ($)-0.1004 -0.21 -0.02
# of EPS Estimates4*1*5*
# of Revenue Estimates9*6*8*

Notes: Q2 was a significant beat on both revenue and EPS; Q1 missed on EPS but beat on revenue; Q4 beat on both. Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Q2 execution delivered operating income from ongoing business and a sizable revenue/EPS beat, aided by stronger U.S. net sales and rising collaboration royalties; the omni-channel strategy and improved payer dynamics are proving durable .
  • Expect near-term catalysts from Otsuka in H2 2025 (up to $120M milestones) and continued Europe royalty momentum; connected TV campaign may further accelerate consumer-driven demand .
  • Access tailwinds (prior auth removals, high approval rates) and post-IRA gross-to-net stability support margin trajectory heading into 2026; tech transfer should enhance gross margin beginning next year .
  • Balance sheet leverage (royalty sale liability and debt) and elevated interest expense remain watch points despite operating progress; cash decreased to $86.1M at quarter-end .
  • Competitive positioning anchored in unique labels (primary prevention, statin intolerance) and patent durability; management sees limited near-term outcome data from emerging orals .
  • Guidance discipline continues (OpEx reiterated), with a clear profitability timeline (Q1 2026) and incremental working capital benefits from tech transfer in 2H 2025 .
  • Near-term trading: stock likely sensitive to execution signals on scripts/prescriber growth, payer wins, and visibility on Japanese regulatory milestones; medium-term thesis hinges on sustained U.S. adoption, international launches, and margin uplift post tech transfer .

Why Q2 Beat vs Estimates

  • U.S. net product revenue growth (+42% Y/Y to $40.3M) from improved access and digital engagement; collaboration revenue helped by stronger royalties and supply agreements (ex-milestones) .
  • Access improvements and field reimbursement support lifted approval rates, reducing friction in prescription fulfillment and underpinning double-digit script growth .
  • Europe momentum (royalty +30% Q/Q to $13.6M) and broadening international pipeline of approvals contributed to collaboration revenue strength .

Disclosures

  • All company figures and management commentary sourced from the Q2 2025 8-K earnings press release and related press releases, and Q2 2025 earnings call transcript - - - -.
  • Consensus estimates marked with asterisks were retrieved from S&P Global.