Esperion Therapeutics, Inc.
- Company Name
- Esperion Therapeutics, Inc.
- Stock Symbol
- Class Period
- February 22, 2017 to May 1, 2018
- Motion Deadline
- July 6, 2018
- Eastern District of Michigan
The complaint charges Esperion and certain of its officers with violations of the Securities Exchange Act of 1934. Esperion is a biopharmaceutical company primarily focused on the research and development of oral and small molecule therapies for the treatment of patients with elevated levels of low-density lipoprotein cholesterol (“LDL-C”) and other cardio metabolic risk factors.
Esperion has two LDL-C lowering therapies in development: the bempedoic acid/ezetimibe combination pill and bempedoic acid. Both have confirmed regulatory pathways to approval and defined global pivotal Phase 3 clinical development plans resulting in tandem New Drug Application and Marketing Authorization Application global regulatory approvals expected in the United States and Europe by the first quarter of 2020. Esperion owns the exclusive worldwide rights to the bempedoic acid-based franchise of products in development.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations, including that Esperion’s cholesterol-lowering medication, bempedoic acid, had serious undisclosed safety risks, including death. As a result of defendants’ false statements and/or omissions, Esperion securities traded at artificially inflated prices during the Class Period, with the price of its stock reaching a high of $80.75 per share.
Then on May 2, 2018, Esperion announced the results from its second pivotal Phase 3 study regarding the long-term safety and tolerability of bempedoic acid. While Esperion’s press release reported that bempedoic acid “was observed to be safe and well-tolerated” and that the trial had met its key efficacy endpoint, a chart of adverse events accompanying the release demonstrated that there were 13 “fatal adverse events” in the treatment group compared to only two in the control group. On this news, the price of Esperion shares fell $24.75 per share, or more than 35%, to close at $45.75 per share on May 2, 2018.