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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks E / Esperion Therapeutics (ESPR)
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Author: LucidDreamer   😊 😞
Number: of 19 
Subject: Re: Q3-24 ER results & thoughts
Date: 11/11/24 10:21 AM
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No. of Recommendations: 5
While their $31m US Sales was "only" 10% Q/Q, their Y/Y growth upticked to 53%.

Using legacy Saul-like criteria, Esperion is officially a high-growth stock, imo.
This Q4 should be a layup to finish slightly higher and closer or above 60% Y/Y.

Then they need growth to kick up a bit to keep the Y/Y trend going into 2025 as their compares start to lap the flat 2023 Q's and in more stair-step growth of 2024 Q's.

script growth is the true measure of the business of drugs, me thinks.
sales is tied to the 3 large PBMs that buy the pills for all the distribution.

I think scripts tell a better growth story since Q1 than sales. it also doesn’t have such a lumpy y/y compare.

I can't post graphics here, I don't think, but the previous 3 Q's had consistent y/y SCRIPT growth of 42-43%.
For Q3, this jumped to 46% Y/Y script growth. This is a key sign, as revenue will follow script growth over time.

Would like to see scripts hit closer to 50% Y/Y for Q4, and supposedly, per their press release comments, Q4 is off to a strong start. Remains to be seen if/how holidays impact scripts, so they need to build up a nice early lead.

The market at first reacted poorly to ER and then it seemed the news about an imminent partnership for Canada has led to the stock price finally breaching $2.20 again. This may just be a technical move...I am not a TA trader, so no idea, but up to $2.40 at moment of writing this. The low recently was $1.60-ish, so obviously a good move since then, but this stock is still way undervalued, imo, due to the acquisition liklihood.

Rumors abound online about a new patent application that happens to be tied to a liver drug that existing partner Otsuka owns...where there is smoke there is fire? Also, their CMO was allowed to leave and went to J&J and apparently they are a top Canada pharma. Again - smoke/fire? Will see.

Couple presentations this month on the calendar of events, too.

Good investing all!
Dreamer
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This community has written 19 posts about Esperion Therapeutics. The article-length ones it recommended most:
Anatomy of a Moon Shot... · 11 recs · 2024
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