JWCA acted as financial advisor to Esperion on the $305 million monetization of its EU royalty on bempedoic acid and repurchase of existing revenue interests

June 2024 | read press release

Transaction Overview

Esperion Therapeutics, Inc. (“the Company”) hired J. Wood Capital Advisors (“JWCA”) to improve its capital structure and increase financial and operating flexibility severely limited by its existing Revenue Interest Purchase Agreement (“RIPA”). After assessing various alternatives, the Company raised capital based on its right to receive royalties from Daiichi Sankyo Europe tied to net sales of bempedoic acid products in Europe.

Esperion’s objectives:

• Pull forward value and proceeds from a passive, undervalued royalty stream

• Maximize upfront cash proceeds in order to facilitate an early repurchase of existing revenue interests under its RIPA

• Unencumber the balance sheet from liens, security interests, and covenants to increase operational and financial flexibility

• Retain upside value in the European market given potential for positive future developments including sales-based milestones

• Achieve competitive cost of capital

JWCA negotiated with investors to help Esperion achieve its objectives. Upon obtaining terms from investors, JWCA:

• Analyzed and negotiated offers to improve valuation and transaction structure and achieve a transaction that best met the Company’s objectives

• Negotiated on the Company’s behalf to repurchase existing revenue interests under the RIPA

• Assisted the company with investor messaging and documentation review

Results

Esperion raised significant capital from a passive, undervalued asset without adding debt or dilution

Allows the Company to restructure its balance sheet and increases financial flexibility, while retaining upside in the royalty stream above the hard cap as well as future milestones