2023-03-15 17:31:04 ET
Esperion Therpeutics ( NASDAQ: ESPR ) has plummeted 55% in after-hours trading after disclosing that Daiichi Sankyo Europe ( OTCPK:DSNKY ) disagrees it owes the company milestone payments for its two cholesterol-lowering drugs containing bempedoic acid.
Espierion ( ESPR ) claims that despite data released earlier in March that Nextelol/Nilemdo (in Europe) (bempedoic acid) reduced the risk of major adverse cardiovascular events, as well as risk of heart attack and coronary revascularization.
Nextelol/Nilemdo and Nexlizet (bempedoic acid and ezetimibe) are intended for individuals who cannot tolerate a statin medication.
Esperion ( ESPR ) says it is eligible for up to $300M in milestone payments from Daiichi Sankyo if the data is included in the EU labeling and meets a certain reduction percentage. Esperion ( ESPR ) is eligible for up to another $140M if the data meets a certain percentage for the US labeling.
However, the company said Daiichi Sankyo ( OTCPK:DSKYF ) believes it does not owe any the milestone payments because it says one of the measures in the CLEAR Outcomes trial failed to meet its primary endpoint.
Esperion ( ESPR ) countered that the agreement with the Japanese pharma stipulates the milestones are payable based on the extended cardiovascular risk reduction and not any primary endpoint. As such, it is eligible for the payments.
Read why Seeking Alpha contributor Zach Bristow rates Esperion ( ESPR ) a hold.
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Esperion Therapeutics falls 55% in dustup with Daiichi Sankyo over milestone payments