Esperion swings to profit as acquisition expands cardiovascular franchise
Drugmaker posts $61.8M Q4 profit, seals $75M Corstasis deal for Enbumyst nasal diuretic
Esperion Therapeutics swung to a quarterly profit as the Michigan-based drugmaker reported a 144 percent surge in revenue and unveiled a strategic acquisition to expand its cardiovascular franchise, sending shares up nearly 12 percent in Tuesday trading.
The company reported fourth-quarter net income of $61.8 million, or $0.22 per diluted share, reversing a loss of $21.3 million, or $0.11 per share, in the same period last year. Total revenue jumped to $168.4 million from $69.1 million a year earlier, driven primarily by a $90 million payment from partner Otsuka tied to regulatory approvals and favorable pricing in Japan.
The earnings turnaround represents a dramatic shift for Esperion, which has spent years building its cholesterol-lowering franchise around Nexletol and Nexlizet. U.S. product revenue grew 38 percent year-over-year to $43.7 million in the quarter, with prescription volumes rising 34 percent compared to the fourth quarter of 2024.
"We delivered strong fourth-quarter and full-year 2025 financial results, exceeding our guidance and significantly narrowing our net loss for the year," said Sheldon Koenig, Esperion's president and chief executive. "Our U.S. commercial execution remains robust, and we're executing on our Vision 2040 strategy to build a leading cardiovascular and cardiometabolic company."
The company's announcement that it would acquire Corstasis Therapeutics for $75 million upfront, with up to $180 million in potential milestone payments, underscored its expansion ambitions. The deal adds Enbumyst, the first and only FDA-approved nasal spray diuretic for adults with edema associated with congestive heart failure, hepatic disease, and renal disease.
Enbumyst, which received regulatory approval in September 2025, targets a U.S. market estimated to exceed $4 billion, addressing approximately 6.7 million American adults with congestive heart failure and edema. The transaction, expected to close in the second quarter of 2026, leverages Esperion's existing cardiovascular commercial infrastructure to accelerate Enbumyst's commercial rollout.
Separately, Esperion revealed it had settled patent litigation with five abbreviated new drug application (ANDA) filers, including major generic manufacturers Alkem Laboratories and Dr. Reddy's Laboratories. The agreements prohibit generic versions of Nexletol and Nexlizet from entering the U.S. market before April 19, 2040, effectively securing another 15 years of market exclusivity for its flagship products.
The patent settlements eliminate remaining challenges to a key patent (U.S. Patent No. 7,335,799), while other related patents are set to expire in March 2036 and June 2040. The legal victories provide Esperion with a clearer path to capture value from its cholesterol-lowering franchise without generic erosion through the next decade.
For the full year 2025, Esperion reported total revenue of $403.1 million, up 21 percent from $332.3 million in 2024. U.S. net product revenue increased 38 percent to $159.6 million, while the company's net loss narrowed to $22.7 million from $51.7 million in the prior year.
Looking ahead, Esperion guided for 2026 operating expenses of $225 million to $255 million, including approximately $15 million in non-cash stock-based compensation. The company plans to finance the Corstasis acquisition through existing credit facilities and royalty monetization of its Japanese royalties.
Analysts have maintained a generally bullish outlook on the stock despite recent volatility. The average analyst price target stands at $8.25, representing more than 170 percent upside from current levels around $3.04, according to MarketBeat data. Needham & Company raised its price target to $5.00 on March 3, maintaining a buy rating, while Piper Sandler initiated coverage with an overweight rating and $9.00 target in November.
The company's shares, which have traded in a 52-week range of $0.69 to $4.18, reflect investor uncertainty about Esperion's path to sustained profitability. However, Tuesday's surge suggests investors are gaining confidence in the company's dual strategy of defending its existing cholesterol franchise while expanding into adjacent cardiovascular markets through targeted acquisitions.