Esperion Chops 40% Workforce As Launch Of Cholesterol Medication Falters

Esperion Therapeutics Inc's 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 AMGN Repatha and Regeneron Pharmaceuticals Inc 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. 

In April, Esperion turned to Daiichi Sankyo DSNKY to market the drug in other regions in exchange for $30 million cash, tiered royalties, and $175 million in milestones. Daiichi was already commercializing Nexletol in Europe and Japan.

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