Esperion Therapeutics On The Verge Of Being Acquired, Upside Could Be Over 500% In The Near Future

Esperion Therapeutics (ESPR), currently trading under $2 per share, has been attracting considerable attention from analysts. Recently, three analysts reaffirmed strong "Buy" ratings, with price targets ranging from $5 to $16 per share. Among the nine analysts covering Esperion, seven have set targets above $4, signaling substantial upside potential for investors. December 17th 2024 5 star analyst Kristen Kluska starts ESPR at Strong Buy $8 PT.

Esperion’s flagship cholesterol-lowering medications, NEXLIZET and NEXLETOL, are emerging as leading alternatives to statins, particularly in the primary prevention space. NEXLIZET, an oral pill, is positioned to replace invasive PCSK9 inhibitors, with support from leading cardiologists, including Texas-based Heart Place. The European Medicines Agency (EMA) has also recommended NEXLIZET over PCSK9 injections, reinforcing its potential.

With millions of Americans prescribed statins annually, the demand for NEXLIZET is rising, particularly after expanded insurance coverage in September 2024. Analysts project Esperion could reach profitability by 2025.

Esperion has forged key partnerships with pharmaceutical giants Daiichi Sankyo and Otsuka. Daiichi Sankyo has already introduced NEXLIZET to over 500,000 patients in Europe, while Otsuka is preparing for a 2025 launch in Japan. These collaborations are expected to generate substantial revenue through milestone payments and royalties, projected to reach $250 million annually by 2028.  ( Bempedoic Acid + Ezetimibe is dominating the U.K statin alternative space with over 100% growth shown last year, see Graph )

Recent rumors circulating on social media, supported by credible leaks from individuals connected to both DSE and Esperion, strongly indicate that Daiichi Sankyo Europe (DSE), a division of Daiichi Sankyo, is preparing to acquire Esperion Therapeutics. The driving force behind this move appears to be DSE’s strategic expansion into the cholesterol-lowering market, leveraging Esperion’s assets, partnerships, and financial advantages.

DSE is currently developing a triple-combination oral pill designed to lower LDL cholesterol by approximately 65%. Studies suggest it achieves this with minimal side effects compared to high-intensity statins. This novel treatment covers multiple pathways to accelerate LDL reduction, providing a rapid and effective option for patients.

Owning Esperion would grant DSE full control over not just bempedoic acid (Nilemdo and Nustendi in Europe) but also the financial and strategic benefits Esperion has secured through its partnerships and growing U.S. market presence. Most critically, it would allow DSE to eliminate substantial financial obligations tied to its current agreements with Esperion.

Esperion and DSE have had a turbulent relationship, shifting from collaboration to disputes and back to a structured settlement. In early 2024, a key agreement was reached in which DSE committed to taking over the cost of goods and manufacturing for bempedoic acid starting in the second half of 2025. This transition is projected to save Esperion between $70 million and $90 million annually—equating to a per-pill cost reduction of approximately $0.30. Additionally, DSE has agreed to pay Esperion a 25% royalty on all sales of the upcoming triple-combination pill.

Acquiring Esperion outright would allow DSE to eliminate this ongoing royalty obligation, making the acquisition financially compelling.

In July 2024, Esperion entered into a Royalty Purchase Agreement with OMERS Life Sciences, selling 100% of its royalty interest (subject to a cap) in DSE’s European bempedoic acid sales for an upfront payment of $304.7 million. Under the agreement, OMERS will collect tiered royalties (15–25%) until it receives a return of 1.7 times its investment, after which all future royalties revert back to Esperion.

Multiple sources have leaked that DSE has reached out to OMERS to negotiate a buyback of this $516 million royalty agreement before acquiring Esperion. If successful, DSE would save an estimated 60%—approximately $180 million—on OMERS’ expected 70% total return. Reports indicate that DSE has engaged both OMERS’ New York office (Eric Haley) and its London office to push forward negotiations.

Esperion’s strategic partnership with Otsuka Japan is another major factor making the company an attractive acquisition target. Otsuka is set to launch Nexletol and Nexlizet in the second half of 2025, with Esperion expected to receive $130 million in milestone payments that year. Additionally, royalties will start at 15% and could rise to 30%, with Otsuka still owing over $300 million in future milestone payments.

Otsuka has dedicated a sales force of 600 to 800 representatives specifically to support the success of these drugs, further boosting their commercial potential. By acquiring Esperion, DSE would secure these milestone and royalty streams, ensuring that the financial benefits remain in-house rather than being paid out to Esperion as a separate entity.

Additional leaks have surfaced suggesting that those within both DSE and Esperion are aware of acquisition discussions.

– Esperion’s CFO, Ben Halladay, Hinted at an Impending AcquisitionIn July 2024, while on an anniversary trip abroad with his wife, Natalie, CFO Ben Halladay reportedly mentioned that he “might be out of a job this time next year,” strongly implying that he expects Esperion to be acquired by mid-2025.

– Chief Medical Officer’s Departure Raises Red Flags Just one month later, in August 2024, Esperion’s Chief Medical Officer, Dr. Joanne Foody, was abruptly let go. She received a full year’s severance package extending through September 2025, a move that further fuels speculation about a pending acquisition. Such pre-acquisition leadership transitions are a common sign of upcoming corporate restructuring.

Given the mounting evidence—from financial incentives to leaked insider information—it is increasingly clear that DSE is positioning itself for a full acquisition of Esperion. The strategic, financial, and operational benefits are overwhelming, making this move a logical next step for DSE’s expansion in the cholesterol-lowering market.

With Esperion’s leadership quietly acknowledging the likelihood of a buyout, and with key players such as OMERS already being approached for negotiations, the question is no longer if Esperion will be acquired—but when.

Use Fintel for accurate ownership of institutions and hedge funds: