Discontinuation of Evacetrapib Study Could Provide Modest Boost to Esperion's (ESPR) ETC-1002

Chardan Capital affirms Esperion Therapeutics (Nasdaq: ESPR) at Neutral with a price target of $18 after Eli Lilly & Co. announced that it and the ACCELERATE study's academic leadership have accepted the recommendation of the independent data monitoring committee to terminate the Phase 3 trial of the investigational medicine evacetrapib, due to insufficient efficacy. Lilly will discontinue development of evacetrapib for the treatment of high-risk atherosclerotic cardiovascular disease and will now conclude other studies in the program.

Analyst Gbola Amusa said the news could provide a modest boost to the commercial potential of Esperion's ETC-1002, if the drug ever gets to market, but by increasing the likelihood of regulatory scrutiny on ETC-1002, the evacetrapib failure reduces the chance ETC-1002 gets there due a likely higher required regulatory burden of proof required ahead.

Amusa also noted the following:

• On this news, the bull case for Esperion's ETC-1002 may be that yet another oral CETP inhibitor has failed (after torcetrapib, dalcetrapib), meaning increased potential for ETC-1002, due to less competitive pressure, if it ever gets to market.
• The bear case however to us is more important, namely that yet another product with LDL-lowering capabilities (evacetrapib lowered LDL cholesterol up to roughly 40%, on a placebo-subtracted basis) has failed, showing the regulator was right to require cardiovascular outcomes trials prior to evacetrapib approval.

For an analyst ratings summary and ratings history on Esperion Therapeutics click here. For more ratings news on Esperion Therapeutics click here.

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