2023-06-15 09:12:00 ET
Esperion Therapeutics ( NASDAQ: ESPR ) added ~15% pre-market Thursday after Bank of America upgraded the stock to Buy from Underperform, citing a near-term upside from a potential settlement with its development partner Daiichi Sankyo ( OTCPK:DSKYF ) ( OTCPK:DSNKY ).
In March, BofA downgraded the stock to Underperform after Esperion ( ESPR ) announced a dispute between the companies over an agreement related to cholesterol-lowering agent bempedoic acid (BA).
The dispute led to a court case after Daiichi Sankyo Europe (DSE) argued that Esperion ( ESPR ) is not entitled to a $300M milestone payment as its CLEAR Outcomes trial for BA did not reach the main goal.
However, BofA analyst Jason Zemansky expects a potential settlement between the partners. Citing views from experts, Zemansky notes that “a settlement could make strategic/financial sense,” given the need for capital and intention to shift attention to the BA, which is Esperion’s ( ESPR ) lead asset.
Despite concerns about BA’s commercial opportunity and the company’s financial position, “we think the potential upside to shares at current levels represents a good near-term opportunity,” the analyst wrote, raising his price target to $4.00 from $1.50 per share.
More on Esperion
- Esperion, Currax team up to co-promote cholesterol lowering drug Nexletol
- Esperion Therapeutics: A Speculative Buy Amidst Extreme Pessimism
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Esperion jumps 15% as BofA double-upgrades citing near-term upside