On December 02, Esperion Therapeutics Inc. (ESPR) plunged 23.08% in the aftermarket when the company announced the pricing of $225 million public offerings. In regular trading, the stock went up by 11.58% at 2.11 million shares exchanging. Intraday trading, the stock saw a high of $9.13 and a low of $7.87, to close at $8.97. While the gain in the stock did have margin for profit booking, it fell in the after-hours to $6.90, after the public offering announcement.
The pharmaceutical company Esperion Therapeutics Inc. (ESPR) has 29.08 million shares outstanding. Currently, ESPR trades at market capital of $233.78 million.
ESPR’s Public Offering
As per Thursday’s announcement, the company entered an underwritten public offering of 32,142,858 shares of its common stock with short-term warrants. The combined public offering price of a share of common stock with a warrant would be $7.00, less discounts and commissions. Further, the exercise price of the short-term warrants is $9.00 per share, which are exercisable immediately. Moreover, the short-term warrants are deemed to expire in two years after the date of issuance.
An additional 4,821,428 shares purchase option (30-day) has also been granted by the company. The closing date of the offering is expected to be on or about December 7, 2021.
According to ESPR, the expected gross proceeds are $225.0 million from the offering. ESPR intends to use the net proceeds of the offering for various purposes. Which include ongoing commercialization of its products, R&D, and general corporate purpose.
Financial Highlights
The company reported its third-quarter financial results of 2021, on November 02. For the quarter ended September 30, 2021, the company generated total revenue of $14.4 million. In comparison, the total revenue in the year-ago period, or Q3 2020, was $3.8 million.
Moreover, ESPR’s net loss for the third quarter of 2021, was $69.4 million. This compares to a net loss of $85.4 million in the third quarter of 2020. Consequently, the net loss per basic and diluted share was $2.62 in Q3 of 2021. This compares to the consensus estimate of $2.86 per share for the quarter. The net loss per basic and diluted share for the year-ago period was $3.07.
ESPR’s Future Guidance
The company revised its previously announced guidance for full-year 2021. According to ESPR, the expected R&D expenses for 2021 are in the range of $110-$115 million. Previously, the guidance expectations placed R&D expenses between $120-$130 million.
Furthermore, the expected SG&A expenses are revised to $195-$200 million, from $200-$210 million for 2021.
