Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Esperion Therapeutics Inc (ESPR, Financial) reported a 14% sequential and 39% year-over-year growth in US product revenue for Q2 2024.
- The company successfully monetized its European royalties, significantly enhancing its balance sheet.
- Expanded labels for NEXLETOL and NEXLIZET now include cardiovascular risk reduction benefits, primary prevention, and use in patients unable to tolerate statin therapy.
- Esperion Therapeutics Inc (ESPR) achieved over 90% preferred commercial coverage and increased Medicare preferred coverage to greater than 50%.
- The company has a strong international presence with approvals and launches in multiple regions, including Europe, Thailand, and Japan.
Negative Points
- Esperion Therapeutics Inc (ESPR) reported a net loss of $61.9 million for Q2 2024, compared to a net loss of $49.9 million for the same period in 2023.
- Selling, general, and administrative expenses increased by 30% year-over-year, primarily due to increased commercial headcount and promotional costs.
- The company incurred a one-time loss of $53.2 million due to the termination of the overland ramp-up.
- Despite significant progress, the company still faces challenges in gaining physician confidence and increasing prescription rates.
- The market dynamics in Japan and other regions remain uncertain, particularly concerning statin intolerance and the uptake of new therapies.
Q & A Highlights
Q: Can you share feedback from doctors on the ground regarding the new label approval and any recent improvements? Also, what more work is needed for script pickup?
A: (Eric Warren, Chief Commercial Officer) Over the past four years, it wasn't always easy to get our products, especially for statin-intolerant or primary prevention patients. However, since the label change and improvements in prior authorization, there has been significant progress. Clinicians are progressively gaining confidence, and we expect continued growth in prescriptions and product sales.
Q: What is the breakdown between commercial and Medicare segments for this market opportunity, and how much focus is there on expanding Medicare coverage?
A: (Sheldon Koenig, President, CEO) We have over 90% commercial coverage and over 50% Medicare coverage. We are working on maximizing our Medicare coverage and expect further improvements. (Betty Jean, Chief Business Officer) Medicare is a key focus, and we are negotiating to increase coverage further.
Q: What do you expect the dynamic to look like for uptake in the cardiovascular space, and are there factors that could support a near-term inflection?
A: (Sheldon Koenig, President, CEO) We are seeing double-digit growth quarter over quarter and expect this momentum to continue. (Eric Warren, Chief Commercial Officer) Cardiovascular products take longer to reach peak compared to oncology, but we are confident in continuous growth. We are tracking ahead of competitive analogs and expect progressive improvements.
Q: Can you provide additional color on gross-to-net and any potential remaining headwinds?
A: (Sheldon Koenig, President, CEO) We don't disclose gross-to-net specifics, but we are at a steady state and comfortable with our current contracting and wholesaler management.
Q: What are the market dynamics in Japan, and what is the unmet need related to statin intolerance?
A: (Sheldon Koenig, President, CEO) Japan is one of the largest markets for lipid-lowering therapies. Statin intolerance affects 15-20% of the population needing statins. We have a great opportunity with our partner Otsuka and look forward to their next steps in filing.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
