Esperion Shares Climb on Patent Win for Cholesterol Drugs
Settlement with Dr. Reddy's Laboratories shields key drugs NEXLETOL and NEXLIZET from generic competition until 2040, boosting investor confidence.
Shares of Esperion Therapeutics (NASDAQ: ESPR) rose over 3% in pre-market trading after the company announced a significant legal victory, securing extended patent protection for its flagship cholesterol-lowering medications.
Esperion with Dr. Reddy's Laboratories, a major generic drug manufacturer. The deal prevents Dr. Reddy's from marketing generic versions of Esperion's NEXLETOL and NEXLIZET in the U.S. until at least April 19, 2040, protecting a critical revenue stream for the company for the next 15 years.
This agreement resolves patent litigation that Esperion initiated in response to Dr. Reddy's application to market generic versions of the drugs before the original patents expired. This is the latest in a series of similar legal victories for Esperion, which has secured agreements with other generic drug makers, including Micro Labs, Hetero USA, and Accord Healthcare, to delay generic competition.
The settlements are crucial for Esperion's financial outlook. The company's key U.S. patent for bempedoic acid, the active ingredient in both drugs, was set to expire in 2030. These agreements effectively extend its market exclusivity, providing a long runway for revenue growth without generic price pressure. , a significant turnaround supported by these legal wins.
The positive market reaction reflects growing investor confidence in Esperion's strategy. The company's stock has surged more than 124% over the past six months as it has systematically resolved these patent challenges. on the stock in recent months, signaling Wall Street's approval of the company's direction.
While the settlement with Dr. Reddy's marks a major milestone, Esperion still faces ongoing litigation with several other pharmaceutical firms over its patents. The outcomes of these remaining cases will be closely watched, as they could still influence the timeline for generic entry. However, with the most significant challenges now resolved, Esperion is in a much stronger position to capitalize on its innovative cholesterol treatments for the foreseeable future.