Esperion Therapeutics, Inc. Q3 FY2025 earnings call

• Total revenue showed strong growth with a 69% year-over-year increase. • Finalized agreements with 4 generic manufacturers to prevent generic marketing of NEXLETOL and NEXLIZET prior to April 2040. • Bempedoic acid products were included in the ESC/EAS guidelines, with expected inclusion in U.S. guidelines in early 2026. • John Harlow joined as Chief Commercial Officer. • Launched marketing campaigns such as "Can’t take a statin? Make NEXLIZET happen!" and connected TV ads. • Achieved favorable Medicare and commercial coverage approval rates. • International partnerships advanced, with Otsuka obtaining marketing approval in Japan. • Pipeline progress with ESP-2001 nominated for primary sclerosing cholangitis treatment.

Total revenue for the third quarter of 2025 grew 69% year-over-year to $87.3 million. U.S. net product revenue increased 31% year-over-year to $40.7 million. Collaboration revenue was $46.7 million, a significant increase of approximately 128% compared to the comparable period in 2024. Research and development expenses for the third quarter of 2025 were $14.1 million, an increase of 36% from the same period in 2024. Selling, general and administrative expenses were $41.8 million, a 5% increase compared to the comparable period in 2024.

• Reiterated the 2025 operating expense guidance of $215 million to $235 million, including $15 million in noncash stock compensation. • Closed a $75 million follow-on equity offering in October.

• Actual results may differ from forward-looking statements due to business risks and uncertainties. • Market competition, regulatory changes, and other uncertainties could impact the company's performance.

Q: What were the drivers behind the gross margins for this quarter? And how can we expect this to progress moving forward?

A: Benjamin Halladay stated that gross margin drivers were low-margin tablet sales to partners, and tech transfer to reduce costs, with expectations of better margins in 2026.

Q: Can you comment a bit more on achieving sustainable profitability in Q1 of 2026? And should this include any incoming milestones?

A: Benjamin Halladay mentioned that milestones are not included in profitability tracking, tracking is in line with forecasts, and onetime expenses in Q3 won't repeat, with confidence in achieving profitability.

Q: On the progress. Just a question in terms of reimbursement per script. It looks like you said scripts were up 9% quarter-over-quarter, but U.S. revenues were fairly flat. Was there a onetime hit here? And I guess, what does it mean moving forward in terms of reimbursement there?

A: Sheldon Koenig explained that there were onetime hits from investments in Medicare access and a new e-voucher for 90 count prescriptions, but gross sales were increasing in Q4 like-for-like.

Q: On the progress of Otsuka and the opportunity in Japan, now that there's preliminary pricing, what's really the next step for them with the authorities there? And then what is your expectation on the timing of when this could occur?

A: Benjamin Halladay said with Otsuka, after preliminary pricing, the next step is final pricing, with launch shortly after, expected in the next 2-3 weeks.

Q: I want to maybe just ask on what you're seeing with regard to 340B utilization of NEXLETOL and NEXLIZET and how you're thinking about that dynamic potentially evolving in 2026? And my second question is just with regard to the pipeline and PSC. I know you guys are still working on IND filing, but just how do you think about the number of centers? And just if you had to sort of put some bookends around what enrollment timing might look like? Any clarity there would be helpful.

A: Benjamin Halladay stated 340B utilization is minuscule with no impact on outlook. Sheldon Koenig said ESP-2001 is in the planning phase, meeting with the FDA, and moving quickly due to unmet need.

Q: First question regarding the prescriber base. I think you continue to expand it. It was up 7% this quarter. What's the split between specialists and primary care physicians? And as you keep adding, is that -- are those proportions changing towards one side or another? And then a couple of quick ones for Ben. Any updates on the DSE manufacturing process? And should we expect guidance for 2026?

A: Sheldon Koenig said the prescriber base split is 60% primary care, 40% cardiologists, steady. Benjamin Halladay mentioned DSE manufacturing process is progressing, expecting better margins in 2026, and no formal 2026 guidance yet.