Esperion Therapeutics, Inc. Q3 FY2024 earnings call

• U.S. Commercialization: NEXLIZET and NEXLETOL had 10% sequential and 53% year-over-year net product revenue growth in Q3 2024. Expanded labels have 3 key differences: include CV risk reduction benefits, expand patient population to include primary prevention and statin-intolerant patients. Payers: Over 165 million patient lives across all payers have updated utilization management criteria, and commercial and Medicare formulary coverage for NEXLETOL and NEXLIZET has expanded. Sales and marketing campaigns aim to educate healthcare providers and empower patients. - International Progress: In Europe, partner DSE had approximately 19% sequential increase in royalty revenue to $8.9 million in Q3 2024. Daiichi Sankyo gained approval for NILEMDO in Taiwan. Japanese partner Otsuka is on track to file a new drug application in Japan by year-end 2024. Esperion expects to file a new drug application in Canada this month and potential submissions in Australia and Israel in the first half of 2025. - Scientific and Clinical: Set to present key data at the American Heart Association Scientific Sessions, including oral and poster presentations on the clinical benefits of NEXLETOL and NEXLIZET.

Total revenue for the third quarter of 2024 was $51.6 million, compared to $34 million in the comparable period of 2023. U.S. net product revenue was $31.1 million in Q3 2024, up approximately 53% year-over-year and 10% sequentially. Collaboration revenue was $20.5 million in Q3 2024, up approximately 50% year-over-year. Research and development expenses were $10.4 million in Q3 2024, a decrease of 30% compared to the comparable period in 2023. Selling, general and administrative expenses were $40 million in Q3 2024, an increase of 20% compared to the comparable period in 2023. Total net loss for the quarter was $29.5 million, compared to a net loss of $41.3 million in the comparable period of 2023. As of September 30, 2024, cash and cash equivalents were $144.7 million. The full year 2024 operating expense guidance is approximately $225 million to $245 million, including $20 million in non-cash expenses related to stock compensation.

• Full year 2024 operating expense guidance is approximately $225 million to $245 million, including $20 million in non-cash expenses related to stock compensation. - Confident that Q4 revenue will be higher than Q3, as evidenced by October 2024 results with total retail prescription equivalents up 17% and new-to-brand prescriptions rising 20% compared to the first 4 weeks of the third quarter.

Q: Question on bempedoic acid prescriptions picking up in Q4, driving factors and Q4 revenue confidence.

A: Eric Warren said the pull-through of improved access, physicians' excitement and easier prescribing, and is confident Q4 will be better than Q3.

Q: How different is product use now, and Medicare coverage.

A: Eric Warren said there's a shift to broader patients including primary prevention and statin-intolerant patients. Betty Jean Swartz said Medicare coverage is over 65% now and expects additional Medicare contracts.

Q: Ongoing payer dynamics, concessions and lives not requiring step through generic.

A: Sheldon Koenig said the step edit through ezetimibe has been removed, no concessions were given, and 68% of the adjunct share is ezetimibe.

Q: Net price outlook and inventory changes.

A: Ben Halladay said inventory is stable, Q4 has cyclicality but next year will smooth out net price.

Q: Japan market dynamics.

A: Sheldon Koenig said Japan is a large lipid market, Otsuka is on track to file an NDA, and it's a significant royalty contributor.

Q: Medicare co-pay.

A: Betty Jean Swartz said Medicare co-pay is approximately $45, and commercial co-pay is approximately $25, with Medicare decisions implemented quickly showing the applicability of the clinical profile.