The stock fell sharply in early trade after the cholesterol drugmaker priced its latest stock sale at a discount to Tuesday’s close.
Shares of Esperion Therapeutics tumbled almost 20% in premarket trading on Wednesday after the cholesterol drugmaker moved to raise fresh capital through a steeply discounted stock sale.
The company priced its new offering at $2.50 per share, about 19% below Tuesday’s closing price of $3.09. Esperion expects to raise roughly $75 million from the sale of 30 million shares, with an option for underwriters to buy an additional 4.5 million shares over the next month. The deal is expected to close around Oct. 9.
Meanwhile, Morgan Stanley, Piper Sandler, and Cantor Fitzgerald are leading the offering, joined by Citizens JMP Securities, H.C. Wainwright, and Needham & Company as co-managers. Esperion said the proceeds will go toward expanding commercialization of its non-statin cholesterol treatments and strengthening its financial position.
The fundraising effort comes after the Michigan-based biotech firm notched a legal win protecting its core cholesterol-lowering drugs. Last week, Esperion reached a settlement with Dr. Reddy’s Laboratories, ensuring the Indian pharma company cannot market generic versions of Nexletol and Nexlizet in the U.S. before April 19, 2040.
That settlement followed similar agreements with Micro Labs USA, Hetero USA, and Accord Healthcare, effectively shoring up Esperion’s patent on bempedoic acid, the key ingredient in both drugs, through December 2030.
On Stocktwits, retail sentiment for Esperion was ‘bullish’ amid ‘high’ message volume.
One retail trader said the real question now is whether Esperion will use the new funds wisely, whether to repay debt and support its late-stage trials, rather than chase new acquisitions or side projects, which could signal poor capital discipline.
Another user speculated that the timing of the offering hinted at deeper management motives, suggesting the cash crunch might be over and predicting a quick rebound above $3.
Esperion’s stock has risen 40.5% so far in 2025.
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