Why Is Esperion Therapeutics (ESPR) Stock Down 24% Today?


  • Esperion Therapeutics (ESPR) stock is falling on Friday with a public share offering.
  • The company is selling 56.7 million shares for $1.50 each.
  • It expects gross proceeds of $85.1 million from the sale.
ESPR Stock - Why Is Esperion Therapeutics (ESPR) Stock Down 24% Today?

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Esperion Therapeutics (NASDAQ:ESPR) stock is falling on Friday after the pharmaceutical company announced details for a public offering of its shares.

This public offering has Esperion Therapeutics selling 56.7 million shares of ESPR stock for $1.50 each. Underwriters of the offering also have a 30-day option to acquire those shares for the same price. Jefferies LLC is the sole book-running manager for the share offering.

Esperion Therapeutics is expecting the gross proceeds of the offering to come in at $85.1 million. The company says it will use funds from the offering to finance its ongoing commercialization efforts for NEXLETOL and NEXLIZET. The money will also be used to develop other pipeline candidates and for other purposes.

Why This Matters for ESPR Stock

A public offering increases the total number of outstanding shares of ESPR stock on the market. Doing so also dilutes the stakes of current shareholders in the company. That helps explain why Esperion Therapeutics stock is falling on Friday.

Adding to that is the $1.50 per share price for ESPR stock in the offering. That’s a major discount over the stock’s closing price of $2.15 per share on Thursday. It makes sense that the low offering price would drag down ESPR’s price as well.

ESPR stock is down 24.2% as of Friday morning.

There are plenty more stock market stories worth reading about below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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