Here’s Why Valuation Around Esperion Therapeutics Inc (ESPR) May Remain Depressed: Chardan
In a research report issued today, Chardan analyst Gbola Amusa maintained a Sell rating on shares of Esperion Therapeutics Inc (NASDAQ:ESPR), with a $36 price target, after competitors Alnylam Pharmaceuticals and Medicines Co announced potentially disruptive data for the cholesterol market.
Amusa noted, “We believe MDCO/ALNY data and clinical plans are interesting and highlight unrated MDCO as a preferred investment over ESPR in the cholesterol market, while the market awaits further disclosure in the second half of September on ESPR’s phase III program. Indeed, MDCO’s market cap of $2.3bn (vs ESPR of $1.2bn) to us makes MDCO a more compelling investment than ESPR, as we believe the value in MDCO’s ALN-PCSsc is likely >2x the value of ESPR’s ETC-1002, with MDCO having over 10 other clinical products in its portfolio to further contribute to valuation, versus 0 for ESPR.”
The analyst continued, “MDCO and partner ALNY announced 83% maximal and 64% mean LDL-cholesterol (LDL-C) lowering for ALN-PCSsc, when tested in patients on or off statins, in a phase I trial presented at the ESC Congress. The results were notably durable, lasting 140 days, which supports once-quarterly and possibly bi-annual subcutaneous dosing, compared to the twice-monthly dosing for PCSK9 inhibitors (Praluent and Repatha). There were no clinically significant drug-related adverse events reported. The companies expect to start a phase 2 study at end-2015, with a phase III study due to start by end-2017.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gbola Amusa has a total average return of 11.7% and a 61.8% success rate. Amusa has a 28.3% average return when recommending ESPR, and is ranked #477 out of 3743 analysts.
Out of the 8 analysts polled by TipRanks, 7 rate Esperion Therapeutics stock a Buy, while 1 rates the stock a Sell. With a return potential of 124.2%, the stock’s consensus target price stands at $117.75.