Esperion Seen As Target After FDA Removes Hold On Cholesterol Drug Trial

NEW YORK (TheStreet) -- Shares of drug maker Esperion Therapeutics are climbing after the FDA removed a partial clinical hold on the company's drug, ETC-1002. In a note to investors today, Credit Suisse wrote that the company could be acquired in the wake of the FDA's decision. WHAT'S NEW: Esperion announced after the closing bell last night that the FDA had removed its partial clinical hold on the company's ETC-1002 drug, which is used to lower cholesterol. As a result of the agency's decision, Esperion will be able to conduct clinical trials of the drug that last longer than six months, the company explained. "We are pleased to receive a positive and rapid response from the FDA following our submission in early January of a complete response to the...partial clinical hold,” said Esperion CEO Tim Mayleben “The removal of the...partial clinical hold is an important milestone on the path toward initiation of our Phase 3 clinical program for ETC-1002 later this year,” the CEO added. ANALYST REACTION: In a note to investors today, Credit Suisse analyst Jason Kantor wrote that the earlier than expected move by the FDA removes the biggest overhang on the stock and significantly reduces the risk facing the company. The most likely outcome for Esperion is that the company will be acquired late this year or early next year, according to the analyst, who raised his price target on the name to $100 from $41 and kept an Outperform rating on the shares. Similarly, JMP Securities believes that the FDA's earlier than expected removal of its partial clinical hold on Esperion's ETC-1002 supports the firm's upbeat view of the drug's safety profile. The firm thinks the news significantly increases the chances of the company reaching a partnership or acquisition deal for the drug. JMP raised its price target on the stock to $93 from $75. PRICE ACTION: In early afternoon trading, Esperion climbed 9% to $48.91. Reporting by Larry Ramer.

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