Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-35986

Esperion Therapeutics, Inc.

(Exact name of registrant as specified in its charter)


Delaware						26-1870780
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3891 Ranchero Drive, Suite 150

Ann Arbor, MI 48108

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code:

(734) 887-3903

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

ESPR

NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of May 1, 2024, there were 189,460,293 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.

Table of Contents

Esperion Therapeutics, Inc.

INDEX


			Page

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Balance Sheets at March 3 1 , 202 4 and December 31, 202 3			3
Condensed Statements of Operations and Comprehensive Income (Loss ) for the three month periods ended March 3 1 , 202 4 and 202 3			4
Condensed Statements of Stockholders’ Deficit for the three month periods ended March 3 1 , 202 4 and 202 3			5
Condensed Statements of Cash Flows for the three month periods ended March 3 1 , 202 4 and 202 3			6
Notes to Condensed Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			27

Item 3. Quantitative and Qualitative Disclosures About Market Risk			37

Item 4. Controls and Procedures			37

PART II — OTHER INFORMATION

Item 1. Legal Proceedings			38

Item 1A. Risk Factors			38

Item 6. Exhibits			43

Signatures			46

From time to time, we may use our website, our X (formerly Twitter) account (@EsperionInc) or our LinkedIn profile at www.linkedin.com/company/esperion-therapeutics to distribute material information. Our financial and other material information is routinely posted to and accessible on the Investors & Media section of our website, available at www.esperion.com. Investors are encouraged to review the Investors & Media section of our website because we may post material information on that site that is not otherwise disseminated by us. Information that is contained in and can be accessed through our website or our LinkedIn page is not incorporated into, and does not form a part of, this Quarterly Report on Form 10-Q.

We use various trademarks and trade names in our business, including without limitation our corporate name and logo. This Quarterly Report on Form 10-Q may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names or products in this Quarterly Report on Form 10-Q is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks and trade names in this Quarterly Report on Form 10-Q may be referred to without the ® and ™ symbols, but the omission of such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto.

Table of Contents

Esperion Therapeutics, Inc.

Condensed Balance Sheets

(in thousands, except share data)


	March 31, 2024		December 31, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	226,609	$	82,248

Accounts receivable	54,612		48,494
Prepaid clinical development costs	—		193
Inventories, net	73,095		65,623
Other prepaid and current assets	11,290		4,507
Total current assets	365,606		201,065


Property and equipment, net	268		—
Right of use operating lease assets	7,130		4,675
Intangible assets	56		56
Total assets	$	373,060	$	205,796

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	28,433	$	31,718
Accrued clinical development costs	3,046		3,441
Accrued variable consideration	34,518		34,284
Other accrued liabilities	23,140		24,998
Revenue interest liability	43,486		34,828
Deferred revenue from collaborations	29,350		25,402
Operating lease liabilities	2,539		1,553
Total current liabilities	164,512		156,224

Convertible notes, net of issuance costs	262,033		261,596
Revenue interest liability	236,397		239,950
Operating lease liabilities	4,416		3,020


Total liabilities	667,358		660,790
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding as of March 31, 2024 and December 31, 2023	—		—
Common stock, $0.001 par value; 480,000,000 shares authorized as of March 31, 2024 and 480,000,000 shares authorized as of December 31, 2023; 189,849,296 shares issued at March 31, 2024 and 120,204,513 shares issued at December 31, 2023	188		118
Additional paid-in capital	1,248,774		1,149,170
Treasury stock, at cost; 1,994,198 shares at March 31, 2024 and December 31, 2023	(54,998)		(54,998)
Accumulated other comprehensive income (loss)	—		—
Accumulated deficit	(1,488,262)		(1,549,284)
Total stockholders’ deficit	(294,298)		(454,994)
Total liabilities and stockholders’ deficit	$	373,060	$	205,796

See accompanying notes to the condensed financial statements.

Table of Contents

Esperion Therapeutics, Inc.

Condensed Statements of Operations and Comprehensive Income (Loss)

(in thousands, except share and per share data)

(unaudited)


	Three Months Ended March 31,
		2024		2023
Revenues:
Product sales, net		$	24,756	$	17,031
Collaboration revenue		112,979		7,298
Total Revenues		137,735		24,329

Operating expenses:
Cost of goods sold		10,075		11,652
Research and development		13,403		31,381
Selling, general and administrative		41,988		29,901
Total operating expenses		65,466		72,934

Income (loss) from operations		72,269		(48,605)

Interest expense		(14,024)		(14,387)
Other income, net		2,777		1,273
Net income (loss)		$	61,022	$	(61,719)

Net income (loss) per common share - basic		$	0.36	$	(0.79)
Net income (loss) per common share - diluted		$	0.34	$	(0.79)

Weighted-average shares outstanding - basic		169,258,564		78,440,266
Weighted-average shares outstanding - diluted		189,641,251		78,440,266

Other comprehensive income (loss):
Unrealized gain on investments		$	—	$	1
Comprehensive income (loss)		$	61,022	$	(61,718)

See accompanying notes to the condensed financial statements.

Table of Contents

Esperion Therapeutics, Inc.

Condensed Statements of Stockholders’ Deficit

(in thousands, except share data)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Deficit
	Shares	Amount
Balance at December 31, 2022	74,570,198	$	75	$	1,071,183	$	(1,340,036)	$	(2)	$	(54,998)	$	(323,778)
Vesting of restricted stock units and performance-based restricted stock units	372,117	—		—		—		—		—		—
Vesting of ESPP shares	95,654	—		502		—		—		—		502
Stock-based compensation	—	—		2,903		—		—		—		2,903
Issuance of common stock, warrants, and pre-funded warrants, net of issuance costs	12,205,000	12		52,416		—		—		—		52,428
Other comprehensive gain	—	—		—		—		1		—		1
Net loss	—	—		—		(61,719)		—		—		(61,719)
Balance at March 31, 2023	87,242,969	$	87	$	1,127,004	$	(1,401,755)	$	(1)	$	(54,998)	$	(329,663)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Deficit
	Shares	Amount
Balance at December 31, 2023	118,210,315	$	118	$	1,149,170	$	(1,549,284)	$	—	$	(54,998)	$	(454,994)
Vesting of restricted stock units and performance-based restricted stock units	439,783	1		—		—		—		—		1
Stock-based compensation	—	—		3,235		—		—		—		3,235
Issuance of common stock from offering, net of issuance costs	65,205,000	65		90,607		—		—		—		90,672
Exercise of warrants	4,000,000	4		5,762		—		—		—		5,766
Other comprehensive gain	—	—		—		—		—		—		—
Net income	—	—		—		61,022		—		—		61,022
Balance at March 31, 2024	187,855,098	$	188	$	1,248,774	$	(1,488,262)	$	—	$	(54,998)	$	(294,298)

See accompanying notes to the condensed financial statements.

Table of Contents

Esperion Therapeutics, Inc.

Condensed Statements of Cash Flows

(in thousands)

(unaudited)


	Three Months Ended March 31,
		2024		2023
Operating activities
Net income (loss)		$	61,022	$	(61,719)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		—		81
Amortization of premiums and discounts on investments		—		(339)
Amortization of debt issuance costs		437		417

Non-cash interest expense related to the revenue interest liability		10,937		11,320

Stock-based compensation expense		3,235		2,903
Changes in assets and liabilities:
Accounts receivable		(6,118)		(2,686)
Prepaids and other assets		(6,590)		(1,608)
Deferred revenue		3,948		8,650
Inventories		(7,472)		(4,151)

Accounts payable		(3,450)		(5,975)
Other accrued liabilities		(2,121)		(1,249)
Net cash provided by (used in) operating activities		53,828		(54,356)

Investing activities

Proceeds from sales/maturities of investments		—		25,000
Purchase of property and equipment		(73)		—
Net cash (used in) provided by investing activities		(73)		25,000

Financing activities
Payments on revenue interest liability		(5,832)		(3,106)
Proceeds from issuance of common stock, warrants, and pre-funded warrants, net of issuance costs		—		52,598
Proceeds from issuance of common stock, net of issuance costs		90,672		—
Proceeds from exercise of warrants, net of issuance costs		5,766		—

Net cash provided by financing activities		90,606		49,492

Net increase in cash and cash equivalents		144,361		20,136
Cash and cash equivalents at beginning of period		82,248		124,775
Cash and cash equivalents at end of period		$	226,609	$	144,911
Supplemental disclosure of cash flow information:
Common stock issuance costs not yet paid		$	—	$	170

Purchase of property and equipment not yet paid		195		—
Non cash right of use asset		72		1

See accompanying notes to the condensed financial statements.

Table of Contents

Esperion Therapeutics, Inc.

Notes to Condensed Financial Statements

(unaudited)

1. The Company and Basis of Presentation

Esperion Therapeutics, Inc. ("the Company” or "Esperion") is a pharmaceutical company currently focused on developing and commercializing accessible, oral, once-daily, non-statin medicines for patients struggling with elevated low density lipoprotein cholesterol ("LDL-C"). Through commercial execution and advancing the Company's pre-clinical pipeline, the Company continues to evolve into a differentiated, global biotech. The Esperion team of experts are dedicated to lowering LDL-cholesterol and cardiovascular risk through the discovery, development and commercialization of innovative medicines and their combinations with established medicines. The Company's first two products were approved by the U.S. Food and Drug Administration ("FDA"), European Medicines Agency ("EMA") and Swiss Agency for Therapeutic Products ("Swissmedic") in 2020. The FDA approved expanded indications for NEXLETOL® (bempedoic acid) and NEXLIZET® (bempedoic acid and ezetimibe) tablets in March 2024. NEXLETOL and NEXLIZET are oral, once-daily, non-statin medicines indicated to reduce the risk of myocardial infarction and coronary revascularization in adults who are unable to take recommended statin therapy (including those not taking a statin) with established cardiovascular disease ("CVD"), or at high risk for a CVD event but without established CVD, and to reduce LDL-C in adults with primary hyperlipidemia.

The Company completed a global cardiovascular outcomes trial ("CVOT"), —known as Cholesterol Lowering via BEmpedoic Acid, an ACL-inhibiting Regimen ("CLEAR") Outcomes. The trial was designed to evaluate whether treatment with bempedoic acid reduced the risk of cardiovascular events in patients who are statin averse and who have CVD or are at high risk for CVD. The Company initiated the CLEAR Outcomes CVOT in December 2016 and fully enrolled the study with nearly 14,000 patients in August 2019. The primary endpoint of the study was the effect of bempedoic acid on four types of major adverse cardiovascular events ("MACE") (cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, or coronary revascularization; also referred to as "four-component MACE"). CLEAR Outcomes was an event-driven trial and concluded once the predetermined number of MACE endpoints occurred. The study showed that bempedoic acid demonstrated significant cardiovascular risk reductions and significantly reduced the risk of heart attack and coronary revascularization as compared to placebo. These results were seen in a broad population of primary and secondary prevention patients who are unable to maximize or tolerate a statin. The proportions of patients experiencing adverse events and serious adverse events were similar between the active and placebo treatment groups. Bempedoic acid, contained in NEXLETOL (bempedoic acid) tablets and NEXLIZET (bempedoic acid and ezetimibe) tablets, became the first LDL-C lowering therapy since statins proven to lower hard ischemic events, not only in those with atherosclerotic cardiovascular disease ("ASCVD") but also in the large number of primary prevention patients for whom limited therapies exist.

On January 2, 2024, the Company entered into a settlement agreement with Daiichi Sankyo Europe GmbH ("DSE") to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York ("Settlement Agreement"). Under the Settlement Agreement, DSE agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company's oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed. Refer to Note 3 "Collaborations with Third Parties" and Note 5 "Commitments and Contingencies" for further information.

On January 18, 2024, the Company entered into an Underwriting Agreement (the "Underwriting Agreement") with Jefferies LLC ("Jefferies"), as representative of several underwriters (the "Underwriters"), related to an underwritten public offering (the "January 2024 Offering") of 56,700,000 shares of Common Stock of the Company, par value $0.001 per share, at a purchase price to the public of $1.50 per share. The Underwriters were also granted a 30-day option to purchase up to an additional 8,505,000 shares of Common Stock, at the public offering price. On January 19, 2024, Jefferies gave notice to the Company of its election to exercise the option to purchase additional shares, in full. Giving effect to the exercise of Underwriters' option, the January Offering closed on January 23, 2024, with proceeds to the Company of approximately $90.7 million, after deducting the underwriting discount and estimated offering expenses of $7.1 million.

On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin, and are now the only LDL-C lowering non-statin drugs indicated for primary prevention patients. The Company’s pending label expansions in Europe remain on track, with a positive opinion

Table of Contents

received from the Committee for Medicinal Products for Human Use (“CHMP”) on March 21, 2024. The Company anticipates a final determination by the European Medicines Agency in the second quarter of 2024.

The Company's primary activities since incorporation have been conducting research and development activities, including nonclinical, preclinical and clinical testing, performing business and financial planning, recruiting personnel, raising capital, and commercializing its products. The Company received approval by the FDA in February 2020 to commercialize NEXLETOL and NEXLIZET in the U.S., and accordingly commenced principal operations on March 30, 2020 with the commercialization of NEXLETOL. The Company is subject to risks and uncertainties which include the need to successfully commercialize its products, research, develop, and clinically test therapeutic products; obtain regulatory approvals for its products; successfully manage relationships with its collaboration partners; expand its management, commercial and scientific staff; and finance its operations with an ultimate goal of achieving profitable operations.

The Company has sustained annual operating losses since inception and expects such losses to continue over the foreseeable future. While management believes current cash resources and future cash received from the Company's net product sales and collaboration agreements with DSE, Otsuka Pharmaceutical Co., Ltd ("Otsuka"), and Daiichi Sankyo Co. Ltd ("DS"), entered into on January 2, 2019, April 17, 2020 and April 26, 2021, respectively, will fund operations for the foreseeable future, management may continue to fund operations and advance the development of the Company's products and product candidates through a combination of collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings, and permitted private and public equity offerings or through other sources.

If adequate funds are not available, the Company may not be able to continue the development of its current products or future product candidates, or to commercialize its current or future product candidates, if approved.

Basis of Presentation

The accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2023, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company invests its excess cash in bank deposits, money market accounts, and short-term investments. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are reported at fair value.

Investments

Investments are considered to be available-for-sale and are carried at fair value. Unrealized gains and losses, if any, are reported in accumulated other comprehensive income (loss). The cost of investments classified as available-for-sale are adjusted for the amortization of premiums and accretion of discounts to maturity and recorded in other income, net. Realized gains and losses, if any, are determined using the specific identification method and recorded in other income, net. Investments with original maturities beyond 90 days at the date of purchase and which mature at, or less than twelve months from, the balance sheet date are classified as current. Investments with a maturity beyond twelve months from the balance sheet date are classified as long-term.

Table of Contents

Concentration of Risk

The Company enters into a limited number of distribution agreements with distributors and specialty pharmacies. The Company's net product sales are with these customers. As of March 31, 2024 and December 31, 2023, eleven customers accounted for all of the Company's net trade receivables. As of March 31, 2024 and December 31, 2023, three customers hold approximately 99% and 96% of the Company's trade receivables associated with net product sales, respectively. In the three months ended March 31, 2024 and 2023, three customers accounted for approximately 99% and 99% of gross sales of NEXLETOL and NEXLIZET, respectively.

Revenue Recognition

In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization, including royalties, of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET.

a.Collaboration Revenue

The Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied.

The collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is "distinct"), or whether such promises should be combined as a single performance obligation.

The terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones as consideration when it is probable that a future reversal is unlikely to occur. For sales-based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties.

At the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company, through its third party contract manufacturing partners, may manufacture and supply quantities of active pharmaceutical ingredient (“API”) or bulk tablets reasonably required by collaboration partners for the development or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive income (loss).

Under the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the

Table of Contents

commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborator.

b.Product Sales, Net

On February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin. Net product sales totaled $24.8 million for the three months ended March 31, 2024, and $17.0 million for the three months ended March 31, 2023.

The Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S. and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract.

Product sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known.

Liabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Accrued variable consideration” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to trade accounts receivable in the condensed balance sheets.

Forms of Variable Consideration

Rebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration ("VA") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed.

Co-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators.

Distribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales.

Table of Contents

Product Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel.

Discounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns.

Inventories

Inventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out ("FIFO") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized.

The Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of goods sold in the period in which they are incurred.

Recently Implemented Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are included within each reported measure of segment profit or loss and regularly reviewed by the chief operating decision maker ("CODM"), the title and position of the CODM, clarification regarding the CODM's use of multiple measures of a segment's profit or loss in assessing segment performance (this must include a measure that is consistent with the measurement principles under U.S. GAAP, but may also include additional measures of a segment's profit or loss), and a description of the composition of amounts within an "Other" segment line item. Further, ASU 2023-07 requires that all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be provided in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-07 will have on the Company’s financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures to further disaggregate the effective tax rate reconciliation and income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 should be adopted prospectively, but retrospective application is permitted. Further, early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-09 will have on the Company’s financial statement disclosures.

There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

3. Collaborations with Third Parties

DSE Agreement Terms

On January 2, 2019, the Company entered into a license and collaboration agreement with DSE, which was further amended on June 18, 2020, and January 2, 2024 (as amended, the “DSE Agreement”). Pursuant to the DSE Agreement, the Company granted DSE exclusive commercialization rights to bempedoic acid and the bempedoic acid / ezetimibe combination tablet in the European Economic Area, United Kingdom, Turkey, and Switzerland (collectively, the “DSE Territory”). DSE is responsible for commercialization in the DSE Territory. DSE's designated affiliate in Turkey will be solely responsible, at its sole cost and expense, for all regulatory matters relating to such products in Turkey, including obtaining regulatory approval for such products in Turkey. The Company remains responsible for clinical development, regulatory and manufacturing activities for the licensed products globally, including in the DSE Territory outside of Turkey.

Table of Contents

Pursuant to the DSE Agreement, the Company received upfront cash of $150.0 million in 2019 and a $150.0 million cash milestone payment in 2020 following the completion of the NUSTENDI Marketing Authorisation Applications ("MAA"). The Company is responsible for supplying DSE with certain manufacturing supply of the API or bulk tablets. In addition, the Company is eligible to receive additional sales milestone payments related to total net sales achievements for DSE in the DSE Territory. Finally, the Company is entitled to receive tiered fifteen percent (15%) to twenty-five percent (25%) royalties on net DSE Territory sales.

The DSE Agreement calls for both parties to participate in a Joint Collaboration Committee (the “DSE JCC”). The DSE JCC is comprised of executive management from each company and the Company will lead in all aspects related to development and DSE will lead in all aspects related to commercialization in the DSE Territory.

On January 2, 2024, the Company entered into the Settlement Agreement with DSE to amicably resolve and dismiss their commercial dispute in the Southern District of New York. Under the Settlement Agreement, DSE has agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company’s oral non-statin products marketed as NILEMDO (bempedoic acid) tablets and NUSTENDI (bempedoic acid and ezetimibe) tablets in Europe. Pursuant to the Settlement Agreement, also on January 2, 2024, the Company entered into a 3rd Amendment (the “DSE Amendment”) to the License and Collaboration Agreement dated January 2, 2019 with DSE. The DSE Amendment grants DSE the exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DSE Territory. Further, after a transition period, DSE will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DSE Territory. As of January 2, 2024, DSE has sole authority and control of regulatory communications with the EMA regarding the pending marketing authorization applications for NILEMDO and NUSTENDI.

Collaboration Revenue

The Company considered the guidance under ASC 606 and concluded that the Settlement Agreement was in the scope of ASC 606. The Company determined that significantly all the upfront payment of $100 million from the transaction price received under the Settlement Agreement qualified for revenue recognition as it related to settlement of performance obligations completed under the DSE Agreement, including: 1) the settlement of the disputed milestone, which relates to variable consideration for full satisfied performance obligations, and 2) the developmental rights for the triple combination pill. In the three months ended March 31, 2024, the Company recognized collaboration revenue of approximately $113.0 million made up of milestone from the Settlement Agreement, royalty revenue from DSE and sales of bulk tablets to DSE pursuant to the supply agreement that was executed with DSE. In the three months ended March 31, 2023, the Company recognized collaboration revenue of approximately $7.1 million related to royalty revenue from DSE from the sales of NILEMDO and NUSTENDI as well as the sales of bulk tablets to DSE pursuant to the supply agreement that was executed with DSE.

All remaining future potential milestone amounts, including the $25 million payment based on the EMA decision on the application for NILEMDO and NUSTENDI, were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to sales-based milestones will be recognized when the subsequent sales occur.

Otsuka Agreement Terms

On April 17, 2020, the Company entered into a license and collaboration agreement (the "Otsuka Agreement") with Otsuka. Pursuant to the Otsuka Agreement, the Company granted Otsuka exclusive development and commercialization rights to NEXLETOL and NEXLIZET in Japan (the "Otsuka Territory"). Otsuka will be responsible for all development, regulatory, and commercialization activities in Japan. In addition, Otsuka will fund all clinical development costs associated with the program in Japan.

Pursuant to the Otsuka Agreement, the consideration consists of a $60.0 million upfront cash payment and the Company will be eligible to receive additional payments of up to $450.0 million if certain regulatory and commercial milestones are achieved by Otsuka. The potential future milestone payments include up to $20.0 million upon first JNDA submissions in the Otsuka Territory, up to $70.0 million upon the first NHI Price Listing (as defined in the Otsuka Agreement) for NEXLETOL in the Otsuka Territory, and following Regulatory Approval and NHI Price Listing, up to $50.0 million upon the achievement of the primary major adverse cardiovascular events (“MACE”) endpoint in the CLEAR Outcomes study and the CV risk reduction rate in the U.S. label, depending on the range of relative risk reduction in the CLEAR Outcomes study. In addition, the Company is eligible to receive additional sales milestone payments up to $310.0 million related to total net sales achievements for Otsuka in Japan. Finally, the Company is entitled to receive tiered fifteen percent (15%) to thirty percent (30%) royalties on net sales in Japan.

Table of Contents

Collaboration Revenue

The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. In the three months ended March 31, 2024 and March 31, 2023, the Company did not have any collaboration revenue related to the Otsuka Agreement.

All future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur.

The Company has not yet recognized any revenue for milestone payments as the related regulatory and commercial milestones have not yet been achieved.

DS Agreement Terms

In April 2021, the Company entered into a license and collaboration agreement with Daiichi Sankyo Co. Ltd (the "DS Agreement"). Pursuant to the DS Agreement, the Company granted DS exclusive rights to develop and commercialize bempedoic acid and the bempedoic acid / ezetimibe combination tablet in South Korea, Taiwan, Hong Kong, Thailand, Vietnam, Brazil, Macao, Cambodia and Myanmar (collectively, the "DS Territory"). The DS Agreement allows for potential expansion across geographies including Saudi Arabia, Kuwait, Oman, UAE, Qatar, Bahrain, Yemen, Colombia and other Latin American countries. Except for certain development activities in South Korea and Taiwan, DS will be responsible for development and commercialization in these territories. In addition, DS will fund all development costs associated with the program in the DS Territory. Pursuant to the DS Agreement, the consideration consists of a $30.0 million upfront cash payment that is non-refundable, non-reimbursable and non-creditable. The Company is also eligible to receive additional one-time payments of up to $175.0 million if certain commercial milestones are achieved by DS. Also, the Company is entitled to receive tiered royalties of five percent (5%) to twenty percent (20%) of net sales in the DS Territory.

Pursuant to the Settlement Agreement, on January 2, 2024, the Company entered into the 1st Amendment (the “DS Amendment”) to the License and Collaboration Agreement with DS. The DS Amendment grants DS exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DS Territory. Further, after a transition period, DS will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DS Territory.

Collaboration Revenue

The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. The Company concluded that the upfront payment of $30.0 million should be included in the transaction price and related to the following performance obligations under the agreement: 1) the license to the Company’s intellectual property and 2) the obligation to provide ongoing development activities. The Company used the adjusted market assessment approach in determining the standalone selling price of the Company’s intellectual property and the expected cost plus margin approach in determining the standalone selling price of the Company’s obligation to provide ongoing development activities. The Company did not have any collaboration revenue in three months ended March 31, 2024 aside from that discussed in the "DSE Agreement Terms" section above. The Company recognized $0.2 million of collaboration revenue related to the ongoing regulatory and development activities for the three months ended March 31, 2023.

Table of Contents

4. Inventories, net

Inventories, net consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Raw materials	$	67,116	$	61,890
Work in process	3,563		1,728
Finished goods	2,416		2,005

	$	73,095	$	65,623

5. Commitments and Contingencies

DSE Litigation

On March 27, 2023, the Company filed a complaint in the United States District Court for the Southern District of New York seeking declaratory judgment against DSE regarding the Company’s right to receive a $300 million milestone payment upon inclusion of cardiovascular risk reduction in the EU label that correlates with a relative risk reduction rate of at least 20%, based on the results of the CLEAR Outcomes CVOT. On May 4, 2023, the Company filed an amended complaint against DSE in the Southern District of New York seeking a judicial declaration, on an expedited basis, that DSE is contractually required to make a $300 million milestone payment to the Company upon applicable regulatory approval. On June 20, 2023, DSE filed a response to the amended complaint.

On January 2, 2024, the Company entered into the Settlement Agreement with DSE to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York. Under the Settlement Agreement, DSE agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company's oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed. Refer to Note 3 “Collaborations with Third Parties” for further information.

ANDA Litigation

In March 2024, the Company received notices from nine pharmaceutical companies (each, a “NEXLETOL ANDA Filer”), that each company had filed an Abbreviated New Drug Application (“ANDA”) with the FDA seeking approval of a generic version of NEXLETOL. Subsequently, in April 2024, the Company received a notice from three pharmaceutical companies (each, a “NEXLIZET ANDA Filer” and together with the NEXLETOL ANDA Filers, each, an “ANDA Filer”) that each company had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET. The ANDAs each contained Paragraph IV certifications alleging that certain of the Company’s Orange Book listed patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted.

Under the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act to the Federal Food, Drug, and Cosmetic Act (the “FDCA”), the Company has 45 days from receipt of the notice letters to commence patent infringement lawsuits against these generic drug manufacturers in a federal district court to trigger a stay precluding the FDA’s approval of any ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLETOL or NEXLIZET, as applicable, new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. The Company is conducting its necessary due diligence and intends to file lawsuits within the 45-day period.

Table of Contents

6. Investments

The following table summarizes the Company’s cash equivalents and short-term investments (in thousands):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	195,088	$	—	$	—	$	195,088
Certificates of deposit	402		—		—		402


Total	$	195,490	$	—	$	—	$	195,490


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	68,445	$	—	$	—	$	68,445


Certificates of deposit	402		—		—		402




Total	$	68,847	$	—	$	—	$	68,847

During the three months ended March 31, 2024, other income, net in the statements of operations includes interest income on cash equivalents of $2.4 million. During the three months ended March 31, 2023, other income, net in the statements of operations includes interest income on cash equivalents and investments of $0.9 million. During the three months ended March 31, 2024, there was no accretion of premiums and discounts on investments. During the three months ended March 31, 2023, other income, net in the statements of operations includes amortization of premiums and discounts on investments of $0.3 million.

There were no unrealized gains or losses on investments reclassified from accumulated other comprehensive income (loss) to other income in the statements of operations during the three months ended March 31, 2024 and 2023.

In the three months ended March 31, 2024 and 2023, there were no allowances for credit losses and all unrealized gains (losses) for available-for-sale securities were recognized in accumulated other comprehensive income (loss). As of March 31, 2024, the Company had no accrued interest receivables.

7. Fair Value Measurements

The Company follows accounting guidance that emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value measurements are defined on a three level hierarchy:


Level 1 inputs:						Quoted prices for identical assets or liabilities in active markets;

Level 2 inputs:						Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data; and

Level 3 inputs:						Unobservable inputs that are supported by little or no market activity and require the reporting entity to develop assumptions that market participants would use when pricing the asset or liability.

Table of Contents

The following table presents the Company’s financial assets that have been measured at fair value on a recurring basis (in thousands):


Description	Total		Level 1		Level 2		Level 3

March 31, 2024
Assets:
Money market funds	$	195,088	$	195,088	$	—	$	—
Certificates of deposit	402		402		—		—

Total assets at fair value	$	195,490	$	195,490	$	—	$	—
December 31, 2023
Assets:
Money market funds	$	68,445	$	68,445	$	—	$	—
Certificates of deposit	402		402		—		—



Total assets at fair value	$	68,847	$	68,847	$	—	$	—

There were no transfers between Levels 1, 2 or 3 during the three months ended March 31, 2024 and 2023.

8. Liability Related to the Revenue Interest Purchase Agreement

On June 26, 2019, the Company entered into a Revenue Interest Purchase Agreement ("RIPA") with Oberland, as agent for purchasers party thereto (the “Purchasers”), and the Purchasers named therein, to obtain financing in respect to the commercialization and further development of bempedoic acid and the bempedoic acid / ezetimibe combination tablet and other working capital needs. Pursuant to the RIPA, the Company received $125.0 million at closing, less certain issuance costs. The Company was entitled to receive up to approximately $75.0 million in subsequent installments subject to the terms and conditions set forth in the RIPA: (i) $25.0 million upon certain regulatory approval of its product candidates and (ii) $50.0 million, at the Company’s option, upon reaching $100.0 million trailing worldwide six-month net sales any time prior to December 31, 2021 (the “Third Payment”). In March 2020, the Company received $25.0 million from Oberland upon receiving regulatory approval of NEXLETOL.

As consideration for such payments, the Purchasers will have a right to receive certain revenue interests (the “Revenue Interests”) from the Company based upon net sales of the Company’s certain products, once approved, which will be tiered payments initially ranging from 2.5% to 7.5% of the Company’s net sales in the covered territory (the “Covered Territory”); provided that if annual net sales equal or exceed the Sales Threshold and if the Purchasers receive 100% of their invested capital by December 31, 2024, the revenue interest rate will be decreased to a single rate of 0.4% of the Company’s net sales in the Covered Territory beginning on January 1, 2025. If the Third Payment is drawn down by the Company, the applicable royalty rates will increase by one-third. The Covered Territory is the United States, but is subject to expand to include the world-wide net sales if the Company’s annual U.S. net sales are less than $350.0 million for the year ended December 31, 2021. The U.S. net sales milestone thresholds are not to be taken as financial guidance. The Purchasers’ rights to receive the Revenue Interests shall terminate on the date on which the Purchasers have received Revenue Interests payments of 195% of the then aggregate purchase price (the “Cumulative Purchaser Payments”) paid to the Company, unless the RIPA is terminated earlier.

Under the RIPA, the Company has an option (the “Call Option”) to terminate the RIPA and repurchase future Revenue Interests at any time upon advance written notice. Additionally, the Purchasers have an option (the “Put Option”) to terminate the RIPA and to require the Company to repurchase future Revenue Interests upon enumerated events such as a bankruptcy event, an uncured material breach, a material adverse effect or a change of control.

In addition, the RIPA contains various representations and warranties, information rights, non-financial covenants, indemnification obligations and other provisions that are customary for a transaction of this nature.

Table of Contents

RIPA Amendments

On April 26, 2021, the Company entered into Amendment No. 2 (the “RIPA Amendment 2”) to the RIPA with Oberland, as agent for the purchaser parties thereto. Pursuant to the RIPA Amendment 2, Oberland waived the original trailing six-month world-wide net sales condition to the third installment payment under the RIPA and released the final $50 million payment payable to the Company under the terms of the RIPA. The Company and Oberland also agreed to amend additional terms of the RIPA such that the purchasers will have a right to receive certain revenue interests (the “Revenue Interests”) from the Company based on net sales of the Company’s certain products, once approved, which will be tiered payments ranging from 3.33% to 10% (the “Third Payment Applicable Percentage”) of the Company’s net sales in the covered territory (the “Covered Territory”); provided that (a) prior to December 31, 2024, with respect to each country defined in the Daiichi Territory, if the percentage of net sales that Company receives from Daiichi (the “Receivables Percentage”) is less than the Third Payment Applicable Percentage, then the Revenue Interest for such country payable to the purchasers will be equal to the Receivables Percentages, (b) if annual net sales equal or exceed $350 million and if the Purchasers receive 100% of their invested capital (Cumulative Purchaser Payments") by December 31, 2024, the revenue interest rate will be decreased to a single rate of 3.33% of the Company’s net sales in the Covered Territory for all subsequent calendar quarters and (c) if the Purchasers receive Revenue Interest payments less than 100% of Cumulative Purchaser Payments by December 31, 2024, the Third Payment Applicable Percentage will be increased to a single rate of the Company’s net sales that would have provided 100% of Cumulative Purchaser Payments had such rate applied from the initial funding by the Purchasers. The Covered Territory was originally the United States, but has been expanded to worldwide for all calendar years beginning on or after January 1, 2022.

Under the RIPA Amendment 2, the Company has an option (the “Call Option”) to terminate the RIPA and repurchase future Revenue Interests at any time upon advance written notice. Additionally, the Purchasers have an option (the “Put Option”) to terminate the RIPA and to require the Company to repurchase future Revenue Interests upon enumerated events such as a bankruptcy event, an uncured material breach, a material adverse effect or a change of control. If the Put Option or the Call Option are exercised, the required repurchase price will be 200% of the Cumulative Purchaser Payments (minus all payments Company has made to the Purchasers in connection with the Revenue Interests), if such option is exercised prior to the third anniversary of the closing date, and 225% of the Cumulative Purchaser Payments (minus all payments Company has made to the Purchasers in connection with the Revenue Interests), if such option is exercised thereafter.

On May 16, 2021, the Company entered into an Amendment to the Security Agreement and Waiver ("Amendment and Waiver") with the same parties to the Security Agreement, by and among the Company, Eiger Partners II LP (the "Purchaser") and Eiger III SA LLC (the "Purchaser Agent"), dated as of June 26, 2019 (the "Security Agreement"). Pursuant to the Amendment and Waiver, if (i) the net revenue from sales of NEXLETOL and NEXLIZET and certain other products in the United States (as reported in the Company’s financial statements as “product sales, net” in accordance with GAAP and excluding, for the avoidance of doubt, upfront or milestone payments and other collaboration revenue) (the “Specified Net Revenue”) for the calendar quarter ended September 30, 2021 does not exceed $15.0 million, or (ii) the Specified Net Revenue for any calendar quarter ending after September 30, 2021 does not exceed $15.0 million, then the Company shall deposit $50.0 million in a deposit account that is subject to a block account control agreement in favor of the Purchase Agent, no later than the earlier of (x) the date the Specified Net Revenue for such calendar quarter has been determined and (y) 45 days after the last day of such calendar quarter. Since the Specified Net Revenue for the calendar quarter ended September 30, 2021 did not exceed $15.0 million, the Company deposited $50.0 million in a deposit account that is subject to a block account control agreement, which is classified as restricted cash on the balance sheets. The Purchaser Agent shall have sole dominion and control over all funds deposited in the deposited account and such funds may be withdrawn therefrom only with the consent of the Purchaser Agent. Upon the occurrence and during the continuance of a Put Option Event, the Purchaser Agent shall have the right to apply amounts held in the deposit account in payment of certain secured obligations in the manner provided for in the Security Agreement. The Amendment and Wavier does not substitute, replace or release the Pledgors from any other obligations under the RIPA or Security Agreement.

On November 23, 2022, the Company entered into Waiver and Amendment No. 3 to Revenue Interest Purchase Agreement and Amendment No. 2 to Security Agreement (the “RIPA Amendment 3”), by and among the Company, the Purchasers and the Purchaser Agent, which amends (i) the Revenue Interest Purchase Agreement, by and among the Company, the Purchasers, and the Purchaser Agent, dated effective as of June 26, 2019 (as amended by Amendment No. 1 to Revenue Interest Purchase Agreement dated as of November 9, 2020 and Amendment No. 2 to Revenue Interest Purchase Agreement dated as of April 26, 2021, and as may be further amended, restated, supplemented or modified from time to time, the “RIPA”) and (ii) the Security Agreement, by the Company in favor of the Purchaser Agent, dated as of June 28, 2019 (as amended by the Amendment to Security Agreement and Waiver by and among the Company, the Purchaser and the Purchaser Agent, effective as of May 16, 2021, and as may be further amended, restated, supplemented or modified from time to time, the “Security Agreement”). Pursuant to the RIPA Amendment 3, among other things, (a) the Company agreed to make a one-time partial call payment with regards to the Revenue Interests (as defined in the RIPA) in an amount equal to $50 million from the restricted cash account (the “Partial Call”), (b) the amount of the Cumulative Purchaser Payments (as defined in the RIPA) was reduced to

Table of Contents

$177,777,778, and (c) the Purchasers and Purchaser Agent waived certain claimed defaults, breaches and Put Option Events under the RIPA and other related documents that may have occurred as a result of the Company’s opening of a new bank account.

In connection with the arrangement, as of March 31, 2024, the Company has recorded a liability, referred to as the “Revenue interest liability” on the balance sheet, of $279.9 million, net of $0.2 million of capitalized issuance costs in connection with the RIPA, which will be amortized to interest expense over the estimated term of the RIPA. The total redemption amount is equal to 225% of the Cumulative Purchaser Payments, or $400 million. At March 31, 2024, the remaining redemption amount is $366.7 million. The Company imputes interest expense associated with this liability using the effective interest rate method. The effective interest rate is calculated based on the rate that would enable the debt to be repaid in full over the anticipated life of the arrangement. The interest rate on this liability may vary during the term of the agreement depending on a number of factors, including the level of forecasted net sales. The Company evaluates the interest rate quarterly based on its current net sales forecasts utilizing the prospective method.

A significant increase or decrease in future net sales will materially impact the revenue interest liability, interest expense and the time period for repayment. The Company recorded approximately $10.9 million in interest expense related to this arrangement for the three months ended March 31, 2024, and approximately $11.3 million in interest expense related to this arrangement for the three months ended March 31, 2023.

The repayment of the RIPA to Oberland does not have a fixed repayment schedule, rather it will be completely repaid and extinguished when the Company has repaid 225% of the Cumulative Purchaser Payments. Since there is not a fixed repayment schedule, the Company does not project its future repayments by year. Each period, the Company estimates the future expected sales of its products in the covered territory and determines the effective annual imputed interest rate, which updates and changes the timing of the Company’s payments. Under the terms of the agreement, every $100 million of net sales generated, less than or equal to $250 million in an annual aggregate year, would result in a repayment obligation of approximately $10.0 million or 10.0% at the stated repayment rate in the first year. Annual net sales for a calendar year exceeding $250 million would result in a repayment obligation of approximately $3.3 million or 3.3% for every $100 million of sales above the threshold. In 2025, the percent of net revenue paid to Oberland could reset to a higher amount if certain revenue milestones are not met. This could result in substantially higher payments starting in 2025. As the U.S. net sales were less than $350 million for the year ended December 31, 2021, the Covered Territory was expanded to include worldwide sales beginning in 2022. The Company’s repayments of the RIPA are directly tied to the growth of its net sales, and as the Company’s net sales grow, the Company expects the related repayments of the RIPA to grow as well. The Company currently expects to repay $43.5 million in the next twelve months.

The effective annual imputed interest rate is 15.7% as of March 31, 2024. Payments made to Oberland as a result of the Company’s net sales will reduce the revenue interest liability.

The following table summarizes the revenue interest liability activity during the three months ended March 31, 2024:


	(in thousands)
Total revenue interest liability at December 31, 2023	$	274,778
Interest expense recognized	10,937
Revenue Interests payments	(5,832)
Total revenue interest liability at March 31, 2024	$	279,883

9. Convertible Notes

In November 2020, the Company issued $280.0 million aggregate principal amount of 4.0% senior subordinated convertible notes due November 2025. The net proceeds the Company received from the offering was approximately $271.1 million, after deducting the initial purchasers’ discounts and commissions and offering expenses payable by the Company (the "Convertible Notes") of $8.9 million. The Company used approximately $46.0 million of the net proceeds from the offering of the notes to pay the cost of the Capped Call (as defined below) and $55.0 million of the net proceeds from the offering of the initial notes to finance the Prepaid Forward (as defined below). The Convertible Notes are the Company's senior unsecured obligations and mature on November 15, 2025 (the “Maturity Date”), unless earlier repurchased or converted into shares of Common Stock under certain circumstances described below. The Convertible Notes are convertible into shares of Common Stock, can be repurchased for cash, or a combination thereof, at the Company’s election, at an initial conversion rate of 30.2151 shares of Common Stock per $1,000 principal amount of the Convertible Notes, which is equivalent to an initial

Table of Contents

conversion price of approximately $33.096 per share of Common Stock, subject to adjustment. The Company will pay interest on the Convertible Notes semi-annually in arrears on May 15 and November 15 of each year.

The Convertible Notes are general unsecured obligations of the Company that are subordinated in right of payment to indebtedness, obligations and other liabilities under the Company’s RIPA, the revenue interests issued pursuant to such agreement, and any refinancing of the foregoing.

Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2025 in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2021 (and only during such calendar quarter), if the last reported sale price per share of Common Stock is greater than or equal to 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five business days after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of Common Stock and the conversion rate for the notes on each such trading day; (3) if the Company calls such notes for redemption, any such notes that have been called for redemption may be converted at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date, but only with respect to the notes called for redemption; and (4) upon the occurrence of specified corporate events, as provided in the Indenture. On or after August 15, 2025, to the close of business on the second scheduled trading day immediately before the maturity date, holders may convert all or any portion of their notes at the applicable conversion rate at any time at the option of the holder regardless of the foregoing conditions.

In addition, following certain corporate events or following issuance of a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or to convert its notes called (or deemed called) for redemption during the related redemption period, as the case may be.

The Convertible Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after November 20, 2023 and before the 41st scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date the Company sends the related redemption notice, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company sends such redemption notice. No sinking fund is provided for the notes. If the Company redeems less than all the outstanding notes, at least $125.0 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

If the Company undergoes a “fundamental change” (as defined in the Indenture), holders may require the Company to repurchase their notes for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest, to, but excluding, the fundamental change repurchase date. The Indenture includes customary terms and covenants, including certain events of default.

On October 22, 2021, the Company entered into a privately negotiated exchange agreement (the “Exchange Agreement”) with two co-managed holders (the “Holders”) of its Convertible Notes. Under the terms of the Exchange Agreement the Holders agreed to exchange (the “Exchange”) with the Company $15.0 million aggregate principal amount of the Convertible Notes held in the aggregate by them (and accrued interest thereon) for shares of Common Stock. Pursuant to the Exchange Agreement, the number of shares of Common Stock to be issued by the Company to the Holders upon consummation of the Exchange was determined based upon the volume-weighted-average-price per share of Common Stock, subject to a floor of $5.62 per share, during the five trading-day averaging period, commencing on the trading day immediately following the date of the Exchange Agreement. The Exchange closed on November 3, 2021, with 1,094,848 shares of Common Stock being exchanged.

As of March 31, 2024, the principal amount of convertible notes was $265.0 million, and the unamortized debt discount and issuance costs were $3.0 million, for a net carrying amount of $262.0 million.

The Company recorded $3.1 million of interest expense during the three months ended March 31, 2024, and $3.1 million of interest expense during the three months ended March 31, 2023, relating to the cash interest on the convertible notes due semi-annually and amortization of the debt issuance costs.

Table of Contents

As of March 31, 2024, no Convertible Notes were convertible pursuant to their terms. The estimated fair value of the Convertible Notes was $220.4 million as of March 31, 2024 and $155.9 million as of December 31, 2023. The estimated fair value of the Convertible Notes was determined through consideration of quoted market prices. As of March 31, 2024, the if-converted value of the Convertible Notes did not exceed the principal value of those notes.

Capped Call Transactions

In connection with the offering of the Convertible Notes, the Company entered into privately-negotiated capped call transactions with one of the initial purchasers of the convertible notes or its affiliate and certain other financial institutions. The Company used approximately $46.0 million of the net proceeds from the offering of the Convertible Notes to pay the cost of the capped call transactions. The capped call transactions are expected generally to reduce potential dilution to Common Stock upon any conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be, in the event that the market value per share of Common Stock, as measured under the terms of the capped call transactions at the time of exercise, is greater than the strike price of the capped call transactions (which initially corresponds to the initial conversion price of the Convertible Notes, and is subject to certain adjustments), with such reduction and/or offset subject to a cap initially equal to approximately $55.16 (which represents a premium of approximately 100% over the last reported sale price of Common Stock on November 11, 2020), subject to certain adjustments. The capped call transactions are separate transactions, entered into by the Company and are not part of the terms of the Convertible Notes.

Given that the transactions meet certain accounting criteria, the convertible note capped call transactions are recorded in stockholders’ equity, and they are not accounted for as derivatives and are not remeasured each reporting period. As of March 31, 2024 and December 31, 2023, the Company had not purchased any shares under the convertible note capped call transactions.

Prepaid Forward

In connection with the offering of the Convertible Notes, the Company entered into a prepaid forward stock repurchase transaction (“Prepaid Forward”) with a financial institution (“Forward Counterparty”). Pursuant to the Prepaid Forward, the Company used approximately $55.0 million of the net proceeds from the offering of the Convertible Notes to fund the Prepaid Forward. The aggregate number of shares of Common Stock underlying the Prepaid Forward was approximately 1,994,198. The expiration date for the Prepaid Forward is November 15, 2025, although it may be settled earlier in whole or in part. Upon settlement of the Prepaid Forward, at expiration or upon any early settlement, the Forward Counterparty will deliver to the Company the number of shares of Common Stock underlying the Prepaid Forward or the portion thereof being settled early. The shares purchased under the Prepaid Forward are treated as treasury stock and not outstanding for purposes of the calculation of basic and diluted earnings per share, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders’ votes, until the Forward Counterparty delivers the shares underlying the Prepaid Forward to the Company. As of March 31, 2024, 448,698 shares had been delivered to the Company. The Company’s Prepaid Forward hedge transaction exposes the Company to credit risk to the extent that its counterparty may be unable to meet the terms of the transaction. The Company mitigates this risk by limiting its counterparty to a major financial institution.

10. Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Accrued legal fees	$	9,662	$	9,202
Accrued compensation	5,966		10,769
Accrued professional fees	3,247		2,712
Accrued interest on convertible notes	3,975		1,325
Accrued other	290		990
Total other accrued liabilities	$	23,140	$	24,998

Table of Contents

11. Stock Compensation

2022 Stock Option and Incentive Plan

In May 2022, the Company's stockholders approved the 2022 Stock Option and Incentive Plan (as amended, the "2022 Plan"). The number of shares of Common Stock available for awards under the 2022 Plan was set to 4,400,000, with any shares underlying awards that are forfeited, canceled, held back upon exercise of an option or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance or shares, or otherwise terminated (other than by exercise) under the 2022 Plan may be added back to the shares of Common Stock available for issuance under the 2022 Plan. The 2022 Plan provides for the award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units ("RSUs"), unrestricted stock, cash-based awards, and dividend equivalent rights. Following the approval of the 2022 Plan, no further awards will be issued under the Company’s Amended and Restated 2013 Stock Option and Incentive Plan (the “2013 Plan”). In June 2023, the Company's stockholders approved an amendment to the 2022 Plan, which increased the number of shares of Common Stock reserved for awards under the 2022 Plan to 10,650,000.

Employee Stock Purchase Plan

In April 2020, the Company's board of directors approved the Esperion Therapeutics, Inc. 2020 Employee Stock Purchase Plan (as amended, the "ESPP") which was approved by the Company's stockholders on May 28, 2020. The ESPP allows eligible employees to authorize payroll deductions of up to 10% of their base salary or wages up to $25,000 annually to be applied toward the purchase of shares of Common Stock on the last trading day of the offering period. Participating employees will purchase shares of Common Stock at a discount of up to 15% on the lesser of the closing price of Common Stock on the NASDAQ Global Market (i) on the first trading day of the offering period or (ii) the last day of any offering period. Offering periods under the ESPP will generally be in six months increments, commencing on September 1 and March 1 of each calendar year with the administrator having the right to establish different offering periods. During the three months ended March 31, 2024, the Company recognized no stock compensation expense related to the ESPP. During the three months ended March 31, 2023, the Company recognized approximately $0.1 million of stock compensation expense related to the ESPP. As of March 31, 2024, there have been 610,506 shares issued and 214,494 shares reserved for future issuance under the ESPP. The Company paused the ESPP effective as of September 1, 2023, such that the offering periods which would otherwise have begun on September 1, 2023 and March 1, 2024 did not commence. The administrator will determine the next offering period, pursuant to the ESPP.

2017 Inducement Equity Plan

In May 2017, the Company's board of directors approved the Esperion Therapeutics, Inc. 2017 Inducement Equity Plan (as amended in November 2019 and August 2023, the "2017 Plan"). The number of shares of Common Stock available for awards under the 2017 Plan is 2,650,000, with any shares of Common Stock that are forfeited, cancelled, held back upon the exercise or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of Common Stock, or otherwise terminated (other than by exercise) under the 2017 Plan added back to the shares of Common Stock available for issuance under the 2017 Plan. The 2017 Plan provides for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units ("RSUs"), unrestricted stock awards and dividend equivalent rights.

Table of Contents

Stock Options

The following table summarizes the activity relating to the Company’s options to purchase Common Stock for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	3,686,191	$	13.88	7.47	$	584
Granted	1,757,000	$	2.05
Forfeited or expired	(47,000)	$	24.57
Exercised	—	$	—
Outstanding at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Vested and expected to vest at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Exercisable at March 31, 2024	1,847,040	$	22.25	6.02	$	30

Stock-based compensation related to stock options was $0.9 million for the three months ended March 31, 2024, including $0.1 million that was capitalized into inventory, and $1.0 million for the three months ended March 31, 2023, including $0.1 million that was capitalized into inventory. As of March 31, 2024, there was $8.5 million of unrecognized stock-based compensation expense related to unvested options, which will be recognized over a weighted-average period of 2.7 years.

Performance-Based Stock Options ("PBSOs")

In 2021, 2022, and 2023 the Company granted PBSOs from the 2013 Plan and the 2022 Plan, that vest upon various performance-based milestones as set forth in the individual grant agreements, such as achievement of predetermined clinical or regulatory outcomes. The actual number of units (if any) received under these awards will depend on continued employment and actual performance over the performance period. Each quarter, the Company updates their assessment of the probability that the performance milestone will be achieved. The Company amortizes the fair value of the PBSOs based on the expected performance period to achieve the performance milestone. The performance criteria was met in three months ended March 31, 2024.

The following table summarizes the activity relating to the Company’s PBSOs for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	661,850	$	4.97	8.63	$	312
Granted	—	$	—
Forfeited or expired	—	$	—
Exercised	—	$	—
Outstanding at March 31, 2024	661,850	$	4.97	8.38	$	242
Vested and expected to vest at March 31, 2024	661,850	$	4.97	8.38	$	242
Exercisable at March 31, 2024	661,850	$	4.97	8.38	$	242

Stock-based compensation related to PBSOs was $0.5 million for the three months ended March 31, 2024, and $0.2 million for the three months ended March 31, 2023. As of March 31, 2024, there was no unrecognized stock-based compensation expense related to unvested PBSOs.

Table of Contents

Restricted Stock Units ("RSUs")

The following table summarizes the activity relating to the Company’s RSUs for the three months ended March 31, 2024:


	Number of RSUs	Weighted-Average Fair Value Per Share
Outstanding and unvested December 31, 2023	3,047,888	$	4.69
Granted	3,295,225	$	2.08
Forfeited	(18,754)	$	4.31
Vested	(283,408)	$	6.55
Outstanding and unvested March 31, 2024	6,040,951	$	3.18

Stock-based compensation related to RSUs was approximately $1.6 million for the three months ended March 31, 2024, including $0.1 million that was capitalized into inventory, and approximately $1.5 million for the three months ended March 31, 2023, including $0.1 million that was capitalized into inventory. As of March 31, 2024, there was $18.3 million of unrecognized stock-based compensation expense related to unvested RSUs, which will be recognized over a weighted-average period of 2.9 years.

Performance-based Restricted Stock Units ("PBRSUs")

In 2021, the Company granted PBRSUs from the 2013 Plan that vest upon various performance-based milestones as set forth in the individual grant agreements, such as achievement of predetermined milestones based on the Company's U.S. net product sales or clinical or regulatory outcomes. The actual number of units (if any) received under these awards will depend on continued employment and actual performance over the performance period. Each quarter, the Company updates their assessment of the probability that the performance milestone will be achieved. The Company amortizes the fair value of the PBRSUs based on the expected performance period to achieve the performance milestone. The fair value of the PBRSUs is based on the quoted market price of Common Stock on the date of grant. The performance criteria was met in three months ended March 31, 2024.

The following table summarizes the activity relating to the Company's PBRSUs for the three months ended March 31, 2024:


	Number of PBRSUs	Weighted-average fair value per share
Outstanding and unvested December 31, 2023	160,275	$	8.94
Granted	—	$	—
Forfeited	(3,900)	$	8.94
Vested	(156,375)	$	8.94
Outstanding and unvested March 31, 2024	—	$	—

Stock-based compensation related to the PBRSUs was $0.2 million for the three months ended March 31, 2024, including less than $0.1 million that was capitalized into inventory, and $0.1 million for the three months ended March 31, 2023, including less than $0.1 million that was capitalized into inventory. As of March 31, 2024, there was no unrecognized stock-based compensation expense related to unvested PBRSUs.

12. Income Taxes

There was no provision for income taxes for the three months ended March 31, 2024 and 2023, because the Company has incurred annual operating losses since inception. At March 31, 2024, the Company continues to conclude that it is not more likely than not that the Company will realize the benefit of its deferred tax assets due to its history of losses. Accordingly, a full valuation allowance has been applied against the net deferred tax assets.

Table of Contents

13. Stockholders' Deficit

Underwriting Agreement

On January 18, 2024, the Company entered into the Underwriting Agreement with Jefferies, as representative of the Underwriters, related to the January 2024 Offering of 56,700,000 shares of Common Stock of the Company, at a purchase price to the public of $1.50 per share. The Underwriters were also granted a 30-day option to purchase up to an additional 8,505,000 shares of Common Stock, at the public offering price. On January 19, 2024, Jefferies gave notice to the Company of its election to exercise the option to purchase additional shares, in full. Giving effect to the exercise of Underwriters' option, the January 2024 Offering closed on January 23, 2024, with proceeds to the Company of approximately $90.7 million, after deducting the underwriting discount and estimated offering expenses of $7.1 million.

ATM Offering

On February 21, 2023, the Company entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co., as sales agent, to provide for the issuance and sale by the Company of up to $70 million of shares of Common Stock from time to time in “at-the-market” offerings (the "2023 ATM Program"), pursuant to its existing Form S-3 and the prospectus supplement filed on February 21, 2023. The Company may continue to use the 2023 ATM Program to address potential short-term or long-term funding requirements that may arise. Such program will continue to be subject to the volatility of the price of Common Stock and general market conditions. During the year ended December 31, 2023, the Company issued 3,312,908 shares of Common Stock, resulting in net proceeds of approximately $4.4 million after deducting $0.4 million of underwriting discounts and commissions and other expenses, pursuant to the New ATM Program. During the three month periods ended March 31, 2024 and 2023, the Company did not issue shares pursuant to the 2023 ATM Program.

Warrants

In connection with an underwriting agreement with H.C. Wainwright & Co., LLC ("Wainwright") on December 2, 2021, the Company issued warrants to purchase 36,964,286 shares of Common Stock at an exercise price of $9.00 and an expiration date of December 7, 2023. The warrants were recorded at fair value of $61.9 million to additional-paid-in-capital in accordance with ASC 815-10 based upon the allocation of the proceeds between the common shares issued with the December 2021 Offering and the warrants. On December 7, 2023, 27,940,074 of these warrants expired. The remaining 9,024,212 warrants were amended as described below.

Registered Direct Offering and Warrant Amendment

On March 19, 2023, the Company entered into a Purchase Agreement with the Purchasers pursuant to which the Company agreed to issue and sell, in a Registered Direct Offering, 12,205,000 shares of Common Stock, Pre-Funded Warrants to purchase up to an aggregate of 20,965,747 shares of Common Stock in lieu of shares of Common Stock, and Warrants to purchase up to 33,170,747 shares of Common Stock. The combined purchase price of each share of Common Stock and accompanying Warrant is $1.675 per share. The Warrants expire on September 22, 2026 and have an exercise price of $1.55. The purchase price of each Pre-Funded Warrant is $1.674 (equal to the combined purchase price per share of Common Stock and accompanying Warrant, minus $0.001). The Purchase Agreement contains customary representations, warranties, covenants and indemnification rights and obligations of the Company and the Purchasers. The Registered Direct Offering closed on March 22, 2023. The warrants and pre-funded warrants were recorded at fair value of $22.8 million to additional-paid-in-capital in accordance with ASC 815-10 based upon the allocation of the proceeds between the common shares issued with the Registered Direct Offering and the warrants and pre-funded warrants. The Company estimated the fair value of the warrants using a Black-Scholes option-pricing model, which is based, in part, upon subjective assumptions including but not limited to stock price volatility, the expected life of the warrant, the risk-free interest rate and the fair value of Common Stock underlying the warrant. The Company estimates the volatility based on its historical volatility that is in line with the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury daily rate for a maturity similar to the expected remaining life of the warrants. The expected remaining life of the warrants is assumed to be equivalent to its remaining contractual term. The Company estimated the fair value of the pre-funded warrants based on the market price of Common Stock at issuance.

In connection with the Registered Direct Offering, the Company amended, pursuant to Warrant Amendment Agreements, certain existing warrants to purchase up to an aggregate of 9,024,212 shares of Common Stock that were previously issued in December 2021 at an exercise price of $9.00 per share and had an expiration date of December 7, 2023, effective upon the closing of the Registered Direct Offering, such that the amended warrants have a reduced exercise price of $1.55 per share and expire three and one half years following the closing of the Registered Direct Offering, or September 22, 2026, for additional

Table of Contents

consideration of $0.125 per amended warrant. Based on the change in the fair value of the amended warrants, the Company recorded issuance costs to additional paid-in capital of $2.9 million.

The Company received gross proceeds of approximately $55.5 million from the Registered Direct Offering, before deducting placement agent fees and related offering expenses. The net proceeds to the Company from the Registered Direct Offering, after deducting the placement agent fees and expenses and the Company’s estimated offering expenses of $4.2 million, were approximately $51.3 million. In addition, the Company received approximately $1.2 million as the gross consideration in connection with the Warrant Amendment Agreements. The net proceeds of the Warrant Amendment Agreements after deducting placement fees of $0.1 million were approximately $1.1 million.

As of March 31, 2024, no pre-funded warrants were outstanding. During the three months ended March 31, 2024, 4,000,000 warrants were exercised. The following table summarizes the warrants outstanding for the Company as of March 31, 2024 and December 31, 2023:


	March 31, 2024	December 31, 2023	Weighted average exercise price
Warrants outstanding from Warrant Amendment Agreements, expiring September 22, 2026	9,024,212	9,024,212	$	1.55
Warrants outstanding from Purchase Agreement, expiring September 22, 2026	23,320,000	27,320,000	$	1.55
Total warrants outstanding	32,344,212	36,344,212

14. Net Income (Loss) Per Common Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Pre-Funded Warrants are included in the weighted-average number of common shares outstanding during the periods. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common stock equivalents outstanding for the period, including shares that potentially could be dilutive if they were exercised or vested during the period, determined using the treasury-stock method and the if-converted method for shares issuable upon conversion of convertible notes. For purposes of this calculation, warrants for common stock, stock options, PBSOs, unvested RSUs and PBRSUs, shares issuable under the ESPP and shares issuable upon conversion of the convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive.

Table of Contents

The following table summarizes the calculation of basic and diluted net income (loss) per share:


	March 31,
(in thousands, except share and per share data)	2024		2023
Net income (loss) - basic	$	61,022	$	(61,719)
Adjustments for dilutive earnings per share:
Interest expense for convertible notes, less amortization of debt issuance costs	2,650		—
Net income (loss) - diluted	$	63,672	$	(61,719)

Weighted average shares - basic	169,258,564		78,440,266
Effect of dilutive common stock equivalents:
Warrants	11,713,131		—
Shares issuable upon conversion of convertible notes	8,007,010		—
Common shares under option	54,217		—
Common shares under PBSOs	55,678		—
Unvested RSUs	478,229		—
Unvested PBRSUs	74,422		—
Dilutive common stock equivalents	20,382,687		—
Weighted average shares - diluted	189,641,251		78,440,266

Net income (loss) per common share – basic	$	0.36	$	(0.79)
Net income (loss) per common share – diluted	$	0.34	$	(0.79)

The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	March 31,
	2024	2023
Common shares under option	5,228,191	4,374,452
Common shares under PBSOs	433,950	433,950
Unvested RSUs	2,204,617	3,117,397
Unvested PBRSUs	—	191,375
Shares issuable related to the ESPP	—	33,575
Shares issuable upon conversion of convertible notes	—	8,007,010
Warrants	—	70,135,033
Total potential dilutive shares	7,866,758	86,292,792

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other filings that we make with the Securities and Exchange Commission (the "SEC").

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements are based on our management’s belief and assumptions and on information currently available to management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events, including our clinical development and commercialization plans, or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, including in relation to the clinical development, commercialization plans, approval of expanded indications for bempedoic acid and the bempedoic acid / ezetimibe combination tablet and expectations regarding future transactions to further improve our balance sheet to be materially different from any future results, performance or achievements, including in relation to the clinical development, commercialization plans, or approval of expanded indications for bempedoic acid and the bempedoic acid / ezetimibe combination tablet, clinical activities and commercial development plans, expressed or implied by these forward-looking statements.

Forward-looking statements are often identified by the use of words such as, but not limited to, “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other similar terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and that could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those referred to or discussed in or incorporated by reference into the section titled “Risk Factors” included in Item 1A of Part II of this Quarterly Report on Form 10-Q. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Unless the context requires otherwise, we use the terms "Esperion," “we,” “us,” “our,” or the "Company” in this Quarterly Report on Form 10-Q to refer to Esperion Therapeutics, Inc.

Overview

Corporate Overview

We are a pharmaceutical company currently focused on developing and commercializing accessible, oral, once-daily, non-statin medicines for patients struggling with elevated low-density lipoprotein cholesterol, or LDL-C. Through commercial execution and advancing our pre-clinical pipeline, we continue to evolve into a differentiated, global biotech. Our team of experts are dedicated to lowering LDL-cholesterol and cardiovascular risk through the discovery, development and commercialization of innovative medicines and their combinations with established medicines. Our first two products were approved by the U.S. Food and Drug Administration, or FDA, European Medicines Agency, or EMA, and Swiss Agency for Therapeutic Products, or Swissmedic, in 2020. The FDA approved expanded indications for NEXLETOL® (bempedoic acid) and NEXLIZET® (bempedoic acid and ezetimibe) tablets in March 2024. NEXLETOL and NEXLIZET are oral, once-daily, non-statin medicines indicated to reduce the risk of myocardial infarction and coronary revascularization in adults who are unable to take recommended statin therapy (including those not taking a statin) with established cardiovascular disease, or CVD, or at high risk for a CVD event but without established CVD, and to reduce LDL-C in adults with primary hyperlipidemia.

We completed a global cardiovascular outcomes trial, or CVOT, —known as Cholesterol Lowering via BEmpedoic Acid, an ACL-inhibiting Regimen (CLEAR) Outcomes. The trial was designed to evaluate whether treatment with bempedoic acid reduced the risk of cardiovascular events in adult patients who are statin averse and who have CVD or are at high risk for CVD.

Table of Contents

We initiated the CLEAR Outcomes CVOT in December 2016 and fully enrolled the study with nearly 14,000 patients in August 2019. The primary endpoint of the study was the effect of bempedoic acid on four types of major adverse cardiovascular events, or MACE, (cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, or coronary revascularization; also referred to as "four-component MACE"). CLEAR Outcomes was an event-driven trial and concluded once the predetermined number of MACE endpoints occurred. The study showed that bempedoic acid demonstrated significant cardiovascular risk reductions and significantly reduced the risk of heart attack and coronary revascularization as compared to placebo. These results were seen in a broad population of primary and secondary prevention patients who are unable to maximize or tolerate a statin. The proportions of patients experiencing adverse events and serious adverse events were similar between the active and placebo treatment groups. Bempedoic acid, contained in NEXLETOL (bempedoic acid) tablets and NEXLIZET (bempedoic acid and ezetimibe) tablets, became the first LDL-C lowering therapy since statins to demonstrate the ability to lower hard ischemic events, not only in those with atherosclerotic cardiovascular disease, or ASCVD, but also in the large number of primary prevention patients for whom limited therapies exist.

On January 2, 2024, we entered into a settlement agreement with Daiichi Sankyo Europe GmbH, or DSE, to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York, or Settlement Agreement. Under the Settlement Agreement, DSE agreed to pay us an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for our oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed. Refer to Note 3 "Collaborations with Third Parties" and Note 5 "Commitments and Contingencies" in this Quarterly Report on Form 10-Q for further information.

On January 18, 2024, we entered into an Underwriting Agreement, or the Underwriting Agreement, with Jefferies LLC, or Jefferies, as representative of several underwriters, or the Underwriters, related to an underwritten public offering, or the January 2024 Offering, of 56,700,000 shares of common stock of the Company, par value $0.001 per share, or Common Stock, at a purchase price to the public of $1.50 per share. The Underwriters were also granted a 30-day option to purchase up to an additional 8,505,000 shares of Common Stock, at the public offering price. On January 19, 2024, Jefferies gave notice to us of its election to exercise the option to purchase additional shares, in full. Giving effect to the exercise of Underwriters' option, the January Offering closed on January 23, 2024, with proceeds to us of approximately $90.7 million, after deducting the underwriting discount and estimated offering expenses.

On March 22, 2024, we announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin, and are now the only LDL-C lowering non-statin drugs indicated for primary prevention patients. Our pending label expansions in Europe remain on track, with a positive opinion received from the Committee for Medicinal Products for Human Use, or CHMP, on March 21, 2024. We anticipate a final determination by the European Medicines Agency in the second quarter of 2024.

In March 2024, we received notices from nine pharmaceutical companies (each, a “NEXLETOL ANDA Filer”), that each company had filed an Abbreviated New Drug Application, or ANDA, with the FDA seeking approval of a generic version of NEXLETOL. Subsequently, in April 2024, we received a notice from three pharmaceutical companies (each, a “NEXLIZET ANDA Filer” and together with the NEXLETOL ANDA Filers, each, an “ANDA Filer”) that the company had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET. The ANDAs each contained Paragraph IV certifications alleging that certain of our Orange Book listed patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted.

Under the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act to the Federal Food, Drug, and Cosmetic Act, or the FDCA, we have 45 days from receipt of the notice letters to commence patent infringement lawsuits against these generic drug manufacturers in a federal district court to trigger a stay precluding the FDA’s approval of any ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLETOL or NEXLIZET, as applicable, new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. We are conducting the necessary due diligence and intend to file lawsuits within the 45-day period. The success of such litigation will depend on the strength of the patents covering NEXLETOL or NEXLIZET, as applicable, and our ability to prove infringement. The outcome of such litigation will be inherently uncertain and may result in potential loss of market exclusivity for NEXLETOL and/or NEXLIZET.

Table of Contents

We were incorporated in Delaware in January 2008, and commenced our operations in April 2008. Since our inception, we have focused substantially all of our efforts and financial resources on developing and commercializing bempedoic acid and the bempedoic acid / ezetimibe tablet. In February 2020, the FDA approved NEXLETOL and NEXLIZET. NEXLETOL was commercially available in the U.S. on March 30, 2020 and NEXLIZET was commercially available in the U.S. on June 4, 2020. While we began to generate revenue from the sale of our products in 2020, we have funded our operations to date primarily through proceeds from sales of preferred stock, convertible promissory notes and warrants, public offerings of common stock and warrants, the incurrence of indebtedness, through collaborations with third parties and revenue interest purchase agreements. We have incurred losses in each year since our inception.

We have never been profitable. Our net income was $61.0 million for the three months ended March 31, 2024, primarily related to the collaboration revenue recognized from the Settlement Agreement with DSE. Our net loss was $61.7 million for the three months ended March 31, 2023. Substantially all of our net losses resulted from costs incurred in connection with research and development programs and selling, general and administrative costs associated with our operations. We expect to incur significant expenses and operating losses for the foreseeable future in connection with our ongoing activities, including, among others:

•commercializing NEXLETOL and NEXLIZET in the U.S.; and

•pursuing other research and development activities.

Accordingly, we may need additional financing to support our continuing operations and further the development and commercialization of our products. We may seek to fund our operations and further development activities through collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings, permitted public or private equity offerings or through other sources. Adequate additional financing may not be available to us on acceptable terms, or at all. Our failure to raise capital as and when needed would have a material adverse effect on our financial condition and our ability to pursue our business strategy or continue operations. We will need to generate significant revenues to achieve profitability, and we may never do so.

Product Overview

NEXLETOL is a first-in-class ATP Citrate Lyase, or ACL, inhibitor that lowers LDL-C and cardiovascular risk by reducing cholesterol biosynthesis and up-regulating the LDL receptors. Completed Phase 3 studies whose primary endpoint was LDL-C lowering were conducted in more than 3,000 patients, with over 2,000 patients treated with NEXLETOL, and demonstrated an average 18% placebo corrected LDL-C lowering when used in patients on moderate or high-intensity statins. The completed Phase 3 CLEAR Outcomes trial in patients unwilling or unable to take statins and who had, or were at high risk for, cardiovascular disease demonstrated an average 21.1% placebo corrected LDL-C lowering, and a resulting 13% lower risk of major cardiovascular events versus placebo. NEXLETOL was approved by the FDA in February 2020 and received an expanded cardiovascular risk reduction indication from the FDA in March 2024.

NEXLIZET contains bempedoic acid and ezetimibe and lowers elevated LDL-C and cardiovascular risk through complementary mechanisms of action by inhibiting cholesterol synthesis in the liver and absorption in the intestine. Phase 3 data demonstrated NEXLIZET lowered LDL-C by a mean of 38% compared to placebo when added on to maximally tolerated statins. NEXLIZET was approved by the FDA in February 2020 and received an expanded cardiovascular risk reduction indication from the FDA in March 2024.

NILEMDO is a first-in-class ACL inhibitor that lowers LDL-C and cardiovascular risk by reducing cholesterol biosynthesis and up-regulating the LDL receptors. NILEMDO was approved by the European Commission, or EC, in March 2020 for use in adults with primary hypercholesterolemia (heterozygous familial and non-familial) or mixed dyslipidemia, as an adjunct to diet in combination with a statin or statin with other lipid-lowering therapies in adult patients unable to reach LDL-C goals with the maximum tolerated dose of a statin, or alone or in combination with other lipid-lowering therapies as an adjunct to diet in adult patients who are statin-intolerant, or for whom a statin is contraindicated.

NUSTENDI contains bempedoic acid and ezetimibe and lowers elevated LDL-C through complementary mechanisms of action by inhibiting cholesterol synthesis in the liver and absorption in the intestine. NUSTENDI was approved by the EC in March 2020 for use in adults with primary hypercholesterolemia (heterozygous familial and non-familial) or mixed dyslipidemia, as an adjunct to diet in combination with a statin in adult patients unable to reach LDL-C goals with the maximum tolerated dose of a statin in addition to ezetimibe, alone in patients who are either statin-intolerant or for whom a statin is contraindicated, and are unable to reach LDL-C goals with ezetimibe alone, or as an adjunct to diet in adult patients already being treated with the combination of bempedoic acid and ezetimibe as separate tablets with or without statin.

Table of Contents

During the three months ended March 31, 2024, we incurred $1.5 million in expenses related to ongoing clinical studies.

During the three months ended March 31, 2023, we incurred $21.7 million in expenses related to our CLEAR Outcomes CVOT and other ongoing clinical studies.

Financial Operations Overview

Product sales, net

Product sales, net is related to our sales of NEXLETOL and NEXLIZET. NEXLETOL was commercially available in the U.S. on March 30, 2020 and NEXLIZET was commercially available in the U.S. on June 4, 2020.

Collaboration revenue

Collaboration revenue is related to our collaboration agreements with DSE, Otsuka Pharmaceutical Co., Ltd., or Otsuka, and Daiichi Sankyo Co. Ltd, or DS. Collaboration revenue in the three months ended March 31, 2024 was primarily related to the Settlement Agreement with DSE and sales of bulk tablets under supply agreements and royalty revenue received from collaboration partners. Collaboration revenue in the three months ended March 31, 2023 was primarily related to sales of bulk tablets under supply agreements and royalty revenue received from collaboration partners. Under contracted supply agreements with ex-U.S. collaborators, we may manufacture and supply quantities of active pharmaceutical ingredient, or API, or bulk tablets reasonably required by ex-U.S. collaboration partners for the development or sale of licensed products in their respective territory. We recognize revenue when the collaboration partner has obtained control of the API or bulk tablets. We also receive royalties from the commercialization of such products, and record our share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborators.

Cost of Goods Sold

Cost of goods sold is related to our net product sales of NEXLETOL and NEXLIZET and the cost of goods sold from our supply agreements with collaboration partners.

Research and Development Expenses

Our research and development expenses consist primarily of costs incurred in connection with the development of bempedoic acid and the bempedoic acid / ezetimibe combination tablet, which include:

•expenses incurred under agreements with consultants, contract research organizations, or CROs, and investigative sites that conduct our preclinical and clinical studies;

•the cost of acquiring, developing and manufacturing clinical study materials and commercial product manufacturing supply prior to product approval, including the procurement of ezetimibe in our continued development of our bempedoic acid / ezetimibe combination tablet;

•employee-related expenses, including salaries, benefits, stock-based compensation and travel expenses;

•allocated expenses for rent and maintenance of facilities, insurance and other supplies; and

•costs related to compliance with regulatory requirements.

We expense research and development costs as incurred. To date, substantially all of our research and development work has been related to bempedoic acid and the bempedoic acid / ezetimibe combination tablet. Costs for certain development activities, such as clinical studies, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations or information provided to us by our vendors. Our direct research and development expenses consist principally of external costs, such as fees paid to investigators, consultants, central laboratories and CROs in connection with our clinical studies. We do not allocate acquiring and manufacturing clinical study materials, salaries, stock-based compensation, employee benefits or other indirect costs related to our research and development function to specific programs.

Table of Contents

We will continue to incur research and development expenses as they relate to other development programs or additional indications we choose to pursue such as the development of our next generation ACLY inhibitors. We expect research and development expenses to decrease substantially in 2024 after the completion of the CLEAR Outcomes CVOT and submitting regulatory filings to the FDA and EMA in 2023. We cannot determine with certainty the duration and completion costs associated with the ongoing or future clinical studies of bempedoic acid and the bempedoic acid / ezetimibe combination tablet. The duration, costs and timing associated with the development of bempedoic acid and the bempedoic acid / ezetimibe combination tablet will depend on a variety of factors, including uncertainties associated with the results of our clinical studies and our ability to obtain regulatory approval outside the U.S. and Europe. For example, if a regulatory authority were to require us to conduct clinical studies beyond those that we currently anticipate will be required for the completion of clinical development or post-commercialization clinical studies of bempedoic acid or the bempedoic acid / ezetimibe combination tablet, we could be required to expend significant additional financial resources and time on the completion of clinical development or post-commercialization clinical studies of bempedoic acid and the bempedoic acid / ezetimibe combination tablet.

Selling, General and Administrative Expenses

Selling, general and administrative expenses primarily consist of salaries and related costs for personnel, including stock-based compensation, associated with our sales, executive, accounting and finance, commercial, operational and other administrative functions. Other general and administrative expenses include selling expenses, facility-related costs, communication expenses and professional fees for legal, patent prosecution, protection and review, consulting and accounting services.

We expect our selling, general and administrative expenses will increase in 2024 with our expanded regulatory approval for product indications in the U.S., expanded commercialization initiatives for NEXLETOL and NEXLIZET and increases in our associated headcount to expand our sales team.

Interest Expense

Interest expense is related to our Revenue Interest Purchase Agreement, or RIPA, with Eiger III SA LLC, or Oberland, an affiliate of Oberland Capital and our convertible notes.

Other Income, Net

Other income, net, primarily relates to interest income and the accretion or amortization of premiums and discounts earned on our cash, cash equivalents and investment securities and also includes other income related to the sale of leased vehicles.

Critical Accounting Policies and Significant Judgments and Estimates

Our discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in our financial statements. We evaluate our estimates and judgments on an ongoing basis, including those related to our collaboration agreements and revenue interest liability. We base our estimates on historical experience, known trends and events, contractual milestones and other various factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions.

There have been no other material changes to the significant accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Table of Contents

Results of Operations

Comparison of the Three Months Ended March 31, 2024 and 2023


	Three Months Ended March 31,
	2024		2023		Change
	(unaudited, in thousands)
Revenue:
Product sales, net	$	24,756	$	17,031	$	7,725
Collaboration revenue	112,979		7,298		105,681
Operating Expenses:
Cost of goods sold	10,075		11,652		(1,577)
Research and development	13,403		31,381		(17,978)
Selling, general and administrative	41,988		29,901		12,087
Income (loss) from operations	72,269		(48,605)		120,874
Interest expense	(14,024)		(14,387)		363
Other income, net	2,777		1,273		1,504
Net income (loss)	$	61,022	$	(61,719)	$	122,741

Product sales, net

Product sales, net for the three months ended March 31, 2024 was $24.8 million compared to $17.0 million for the three months ended March 31, 2023, an increase of approximately $7.8 million. The increase is primarily due to prescription growth of NEXLETOL and NEXLIZET compared to the first quarter of 2023.

Collaboration revenue

Collaboration revenue recognized from our collaboration agreements for the three months ended March 31, 2024 was $113.0 million compared to $7.3 million for the three months ended March 31, 2023, an increase of $105.7 million. The increase is primarily due to revenue recognized from our Settlement Agreement with DSE and increased product sales to our collaboration partners from our supply agreements and royalty sales growth within our partner territories.

Cost of goods sold

Cost of goods sold for the three months ended March 31, 2024 was $10.1 million compared to $11.7 million for the three months ended March 31, 2023, a decrease of $1.6 million. The decrease is primarily related to lower unit tablet costs for sales in the U.S and supply sales to DSE.

Research and development expenses

Research and development expenses for the three months ended March 31, 2024, were $13.4 million, compared to $31.4 million for the three months ended March 31, 2023, a decrease of $18.0 million. The decrease in research and development expenses was primarily attributable to a decrease in costs related to CLEAR Outcomes study following the announcement and presentation of our CLEAR Outcomes study results in March 2023.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended March 31, 2024, were $42.0 million, compared to $29.9 million for the three months ended March 31, 2023, an increase of $12.1 million. The increase in selling, general and administrative expenses was primarily attributable to increased commercial headcount, bonuses, and promotional costs in anticipation of the launch of the expanded labels for NEXLETOL and NEXLIZET.

Table of Contents

Interest expense

Interest expense for the three months ended March 31, 2024, was $14.0 million, compared to $14.4 million for the three months ended March 31, 2023, a decrease of $0.4 million. The decrease in interest expense was primarily due to lower interest expense attributable to our RIPA with Oberland.

Other income, net

Other income, net for the three months ended March 31, 2024, was $2.8 million, compared to $1.3 million for the three months ended March 31, 2023, an increase of $1.5 million. The increase in other income, net was primarily due to higher interest income on our investments due to higher cash equivalents.

Liquidity and Capital Resources

While we began to generate revenue from the sales of our products in 2020, we have funded our operations to date primarily through proceeds from sales of preferred stock, convertible promissory notes and warrants, public offerings of common stock and warrants, the incurrence of indebtedness, milestone payments from collaboration agreements and our revenue interest purchase agreement. Pursuant to the license and collaboration agreements with DSE, DS, and Otsuka, we are eligible for substantial additional sales and regulatory milestone payments and royalties.

On February 21, 2023, we entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co., as sales agent, to provide for the issuance and sale by us of up to $70 million of shares of our common stock from time to time in “at-the-market” offerings, or the 2023 ATM Program, pursuant to our existing Form S-3 and the prospectus supplement filed on February 21, 2023. During 2023, we issued 3,312,908 shares of common stock resulting in net proceeds of approximately $4.4 million after deducting $0.4 million of underwriting discounts and commissions and other expenses, pursuant to the 2023 ATM Program.

On March 19, 2023, we entered into a Securities Purchase Agreement, or Securities Purchase Agreement, pursuant to which we agreed to issue and sell, in a registered direct offering, or the Registered Direct Offering, 12,205,000 shares of our common stock, pre-funded warrants pre-funded warrants to purchase up to an aggregate of 20,965,747 shares of our common stock, and warrants to purchase up to 33,170,747 shares of our common stock. The combined purchase price of each share of common stock and accompanying warrant was $1.675 per share. The purchase price of each pre-funded warrant and the accompanying warrant was $1.674 (equal to the combined purchase price per share of common stock and accompanying warrant, minus $0.001). In connection with the Securities Purchase Agreement, we amended certain existing warrants to purchase up to an aggregate of 9,024,212 shares of our common stock that were previously issued in December 2021 at an exercise price of $9.00 per share and had an expiration date of December 7, 2023, such that the amended warrants have a reduced exercise price of $1.55 per share and expire three and one half years following the closing of the Registered Direct Offering, for additional consideration of $0.125 per amended warrant. We received net proceeds of approximately $51.3 million related to the Registered Direct Offering and approximately $1.1 million in connection with the amended warrants.

On January 2, 2024, we entered into the Settlement Agreement with DSE to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York. Under the Settlement Agreement, DSE agreed to pay us an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for our oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed.

On January 18, 2024, the Company entered into the Underwriting Agreement with Jefferies, as representative of the Underwriters, related to the January 2024 Offering of 56,700,000 shares of Common Stock of the Company, at a purchase price to the public of $1.50 per share. The Underwriters were also granted a 30-day option to purchase up to an additional 8,505,000 shares of Common Stock, at the public offering price. On January 19, 2024, Jefferies gave notice to the Company of its election to exercise the option to purchase additional shares, in full. Giving effect to the exercise of Underwriters' option, the January Offering closed on January 23, 2024, with proceeds to the Company of approximately $90.7 million, after deducting the underwriting discount and estimated offering expenses of $7.1 million.

Table of Contents

We anticipate that we will incur operating losses for the foreseeable future as we continue to incur substantial expenses related to the ongoing commercialization of NEXLETOL and NEXLIZET and expenses associated with our research and development activities. We anticipate that our current cash and cash equivalents, expected future net product sales of NEXLETOL and NEXLIZET, and expected future revenue under our collaboration agreements is sufficient to fund continuing operations for the foreseeable future.

As of March 31, 2024, our primary sources of liquidity were our cash and cash equivalents which totaled $226.6 million. We invest our cash equivalents and investments in highly liquid, interest-bearing investment-grade securities and government securities to preserve principal.

The following table summarizes the primary sources and uses of cash for the periods presented below:


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Net cash provided by (used in) operating activities	$	53,828	$	(54,356)
Net cash (used in) provided by investing activities	(73)		25,000
Net cash provided by financing activities	90,606		49,492
Net increase in cash and cash equivalents	$	144,361	$	20,136

Operating Activities

We have incurred and expect to continue to incur, significant costs related to the commercialization of NEXLETOL and NEXLIZET and related to ongoing research and development, regulatory and other clinical study costs associated with the development of bempedoic acid and the bempedoic acid / ezetimibe combination tablet.

Net cash provided by operating activities totaled $53.8 million for the three months ended March 31, 2024, compared to $54.4 million of cash used in operating activities for the three months ended March 31, 2023. Net cash provided by operating activities of $53.8 million for the three months ended March 31, 2024 consisted primarily of net product sales of NEXLETOL and NEXLIZET and collaboration revenue from the Settlement Agreement with DSE partially offset by cash used to fund the commercialization activities of NEXLETOL and NEXLIZET and the research and development costs related to bempedoic acid and the bempedoic acid / ezetimibe combination tablet, adjusted for non-cash expenses such as stock-based compensation expense, interest expense related to our RIPA with Oberland, depreciation and amortization and changes in working capital. Net cash used in operating activities of $54.4 million in for the three months ended March 31, 2023 consisted primarily of net product sales of NEXLETOL and NEXLIZET fully offset by cash used to fund the commercialization activities of NEXLETOL and NEXLIZET and the research and development costs related to bempedoic acid and the bempedoic acid / ezetimibe combination tablet, adjusted for non-cash expenses such as stock-based compensation expense, interest expense related to our RIPA with Oberland, depreciation and amortization and changes in working capital.

Investing Activities

Net cash used in investing activities of $0.1 million for the three months ended March 31, 2024 consisted of purchases of property, plant and equipment. Net cash provided by investing activities of $25.0 million for the three months ended March 31, 2023 consisted of proceeds from the sales of highly liquid, interest bearing investment grade and government securities.

Financing Activities

Net cash provided by financing activities of $90.6 million for the three months ended March 31, 2024 related primarily to our January 2024 Offering and warrant exercises, partially offset by payments on our revenue interest liability. Net cash provided by financing activities of $49.5 million for the three months ended March 31, 2023 related primarily to proceeds from our registered direct offering, partially offset by payments on our revenue interest liability.

As noted above, we received approximately $90.7 million, after deducting the underwriting discounts and estimated offering expenses, from our January 2024 Offering. Refer to Note 13 “Stockholders’ Deficit—Underwriting Agreement” in our condensed financial statements included in this Quarterly Report on Form 10-Q for further information.

In 2019, we entered into a RIPA with Oberland. Pursuant to the RIPA, Oberland paid us $125.0 million at closing, less certain issuance costs, and, subject to the terms and conditions of the RIPA, we received an additional $25.0 million upon regulatory approval of NEXLETOL in 2020 and were eligible to receive an additional $50.0 million at our option upon

Table of Contents

reaching certain sales thresholds. In April 2021, we entered into Amendment No. 2 to the RIPA and Oberland waived the original trailing six-month world-wide net sales condition to the third installment payment under the RIPA and released the final $50 million payment payable to us under the terms of the RIPA. The amendment also updated the tiered payment percentage. As the quarterly net revenue from sales of NEXLETOL and NEXLIZET and certain other products in the United States did not exceed $15.0 million for the quarter ended September 30, 2021, we deposited $50.0 million in a deposit account with Oberland, which reduced our unrestricted cash. On November 23, 2022, we entered into a waiver and amendment to the RIPA with Oberland, in which we agreed to make a one-time partial call payment with regards to the Revenue Interests (as defined in the RIPA) in an amount equal to $50 million from the restricted cash account (the “Partial Call”). Under this amendment, the amount of the Cumulative Purchaser Payments (as defined in the RIPA) was reduced to $177,777,778. As consideration for the payments, Oberland has the right to receive certain revenue interests from us based on the net sales of certain products which will be tiered payments ranging from 3.3% to 10% of our net sales in the covered territory (as detailed in the RIPA). Esperion reacquires 100% revenue rights upon repayment completion. We recorded the proceeds from the RIPA as a liability on the balance sheets and are accounting for the RIPA under the effective-interest method over the estimated life of the RIPA. Future payments under the RIPA may range from $43.5 million in the next year to a maximum total payment of $323.3 million beyond one year. Per the terms of the agreement, every $100 million of net sales generated, less than or equal to $250 million in an annual aggregate, would result in a repayment obligation of approximately $10.0 million or 10% at the stated repayment rate in the first year. In the future, as net sales thresholds set forth in the agreement are met and the repayment percentage rate changes, the amount of the obligation and timing of payment is likely to change. In 2025, the percent of net revenue paid to Oberland could reset to a higher amount if certain revenue milestones are not met. This could result in substantially higher payments starting in 2025. As the U.S. net sales were less than $350 million for the year ended December 31, 2021, the Covered Territory was expanded to include worldwide sales beginning in 2022. A significant increase or decrease in net sales will materially impact the revenue interest liability, interest expense and the time period for repayment. Refer to Note 8 "Liability Related to the Revenue Interest Purchase Agreement" in our condensed financial statements included in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 for further information.

On November 16, 2020, we issued $250.0 million aggregate principal amount of 4.00% convertible senior subordinated notes due 2025 to certain financial institutions as the initial purchasers of the convertible notes. An additional $30.0 million of additional convertible notes (collectively, the "Convertible Notes"), which were issued pursuant to the exercise of the initial purchasers' option to purchase such convertible notes, closed on November 18, 2020. On October 22, 2021, we entered into the Exchange Agreement with the Holders of our Convertible Notes. Under the terms of the Exchange Agreement the Holders agreed to exchange with us $15.0 million aggregate principal amount of the Convertible Notes held in the aggregate by them (and accrued interest thereon) for shares of Common Stock, which closed on November 3, 2021. Future payments under the convertible notes include annual interest of $10.6 million and a principal payment of $265.0 million in 2025. Refer to Note 9 "Convertible Notes" in our condensed financial statements included in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 for further information.

On February 21, 2023, entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co., as sales agent, to provide for the issuance and sale by us of up to $70 million of shares of our common stock from time to time in “at-the-market” offerings, or the 2023 ATM Program, pursuant to our existing Form S-3 and the prospectus supplement filed on February 21, 2023. During the year ended December 31, 2023, we issued 3,312,908 shares of common stock resulting in net proceeds of approximately $4.4 million after deducting $0.4 million of underwriting discounts and commissions and other expenses, pursuant to the 2023 ATM Program. We may continue to use the 2023 ATM Program to address potential short-term or long-term funding requirements that may arise. Such program will continue to be subject to the volatility of the price of our common stock and general market conditions.

On March 22, 2023, we issued and sold, in a registered direct offering, or the Registered Direct Offering, 12,205,000 shares of our common stock, pre-funded warrants to purchase up to an aggregate of 20,965,747 shares of our common stock, and warrants to purchase up to 33,170,747 shares of our common stock. The combined purchase price of each share of common stock and accompanying warrant was $1.675 per share. The purchase price of each pre-funded warrant and the accompanying warrant was $1.674 (equal to the combined purchase price per share of common stock and accompanying warrant, minus $0.001). In connection with the Registered Direct Offering, we amended certain existing warrants to purchase up to an aggregate of 9,024,212 shares of our common stock that were previously issued in December 2021 at an exercise price of $9.00 per share and had an expiration date of December 7, 2023, such that the amended warrants have a reduced exercise price of $1.55 per share. The warrants are immediately exercisable and will expire on September 22, 2026, which may provide us with additional funding, if such warrants are exercised by their holders. Each pre-funded warrant is exercisable for one share of our common stock at an exercise price of $0.001 per share. The pre-funded warrants were immediately exercisable and could be exercised at any time. As of December 31, 2023, no pre-funded warrants were outstanding. During the year ended December 31, 2023, we received net proceeds of approximately $8.4 million from the exercise of warrants and pre-funded warrants. We received net proceeds of approximately $51.3 million related to the Registered Direct Offering after deducting placement agent fees and related offering expenses of $4.2 million, and we received approximately $1.1 million in connection with the amended warrants after deducting placement fees of $0.1 million. In the three months ended March 31, 2024, we received net proceeds of approximately $5.8 million from the exercise of warrants.

Table of Contents

Plan of Operations and Funding Requirements

We expect to continue to incur significant expenses and operating losses for the foreseeable future in connection with our continued commercialization activities associated with NEXLETOL and NEXLIZET in the U.S. Pursuant to the license and collaboration agreements with DSE, Otsuka, and DS, we are eligible for substantial additional sales and regulatory milestone payments and royalties. We estimate that current cash resources, proceeds to be received in the future for product sales and proceeds under the collaboration agreements with DSE, DS and Otsuka are sufficient to fund operations for the foreseeable future. We have based these estimates on assumptions that may prove to be wrong, and we may use our available capital resources sooner than we currently expect. Because of the numerous risks and uncertainties associated with the development and ongoing commercialization of bempedoic acid and the bempedoic acid / ezetimibe combination tablet and the extent to which we entered and may enter into collaborations with pharmaceutical partners regarding the development and commercialization of bempedoic acid and the bempedoic acid / ezetimibe combination tablet, we are unable to estimate the amounts of increased capital outlays and operating expenses associated with completing the development and commercialization of bempedoic acid and the bempedoic acid / ezetimibe combination tablet. Our future funding requirements will depend on many factors, including, but not limited to:

•our ability to successfully develop and commercialize NEXLETOL and NEXLIZET or other product candidates;

•the service and payment of potential debt maturities;

•the time and cost necessary to obtain regulatory approvals for bempedoic acid and the bempedoic acid / ezetimibe combination tablet outside the U.S. and Europe and regulatory approvals for cardiovascular risk reduction in Europe;

•our ability to establish any future collaboration or commercialization arrangements on favorable terms, if at all;

•our ability to realize the intended benefits of our existing and future collaboration and partnerships, including receiving potential milestone payments from collaboration partners;

•the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims; and

•the implementation of operational and financial information technology.

Until such time, if ever, as we can generate substantial U.S. product revenues and collaboration royalties, we expect to finance our cash needs through a combination of collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings and equity offerings or other sources. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing, if available and permitted under the terms of our RIPA, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through collaborations, strategic alliances or licensing arrangements with pharmaceutical partners or royalty-based financing arrangements, such as the collaboration arrangement with DSE, Otsuka and DS, and the RIPA with Oberland, we may have to relinquish valuable rights to our technologies, future revenue streams or grant licenses on terms that may not be favorable to us. For instance, as part of the RIPA with Oberland, Oberland has the right to receive certain revenue interests from us based on the net sales of certain products, and we have granted Oberland a senior security interest in certain of our assets. If our cash flows and capital resources are insufficient to allow us to make required payments, we may have to reduce or delay capital expenditures, sell assets or seek additional capital. If we raise funds by selling additional equity, such sale would result in dilution to our stockholders. If we are unable to raise additional funds through equity or permitted debt financings or through collaborations, strategic alliances or licensing arrangements or permitted royalty-based financing arrangements when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market bempedoic acid and the bempedoic acid / ezetimibe combination tablet that we would otherwise prefer to develop and market ourselves.

We do not currently have, nor did we have during the periods presented, any off-balance sheet arrangements as defined by the SEC rules.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes with respect to the information appearing in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our President and Chief Executive Officer, who is our principal executive officer, and our Chief Financial Officer, who is our principal financial officer, to allow timely decisions regarding required disclosure.

As of March 31, 2024, our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our principal executive officer and principal financial officer have concluded based upon the evaluation described above that, as of March 31, 2024, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The information required with respect to this item can be found under “Commitments and Contingencies” in Note 5 to our condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q and is incorporated by reference into this Item 1.

In the future, we may become party to legal matters and claims arising in the ordinary course of business, the resolution of which we do not anticipate would have a material adverse impact on our financial position, results of operations or cash flows.

Item 1A. Risk Factors

Except for the historical information contained herein or incorporated by reference, this Quarterly Report on Form 10-Q and the information incorporated by reference contains forward-looking statements that involve risks and uncertainties. These statements include projections about our accounting and finances, plans and objectives for the future, future operating and economic performance and other statements regarding future performance. These statements are not guarantees of future performance or events. Our actual results could differ materially from those discussed in this Quarterly Report on Form 10-Q. Factors that could cause or contribute to these differences include, but are not limited to, those discussed in Part I, Item 2 entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere throughout this Quarterly Report on Form 10-Q and in any documents incorporated in this Quarterly Report on Form 10-Q by reference.

You should consider carefully the following risk factors, together with those set forth in Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in all of the other information included or incorporated in this Quarterly Report on Form 10-Q. The following risk factors represent new risk factors or those containing changes, including material changes, to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. If any of the previously identified or following risks, either alone or taken together, or other risks not presently known to us or that we currently believe to not be significant, develop into actual events, then our business, financial condition, results of operations or prospects could be materially adversely affected. If that happens, the market price of our common stock could decline, and stockholders may lose all or part of their investment.

If we are unable to adequately protect our proprietary technology or maintain issued patents which are sufficient to protect bempedoic acid and the bempedoic acid / ezetimibe combination tablet, others could compete against us more directly, which would have a material adverse impact on our business, results of operations, financial condition and prospects.

Our commercial success will depend in part on our success obtaining and maintaining issued patents and other intellectual property rights in the United States and elsewhere and protecting our proprietary technology. If we do not adequately protect our intellectual property and proprietary technology, competitors may be able to use our technologies and erode or negate any competitive advantage we may have, which could harm our business and ability to achieve profitability.

As of December 31, 2023, our patent estate, including patents we own, on a worldwide basis, included approximately 10 issued United States patents and 17 pending United States patent applications and over 25 issued patents and over 80 pending patent applications in other foreign jurisdictions. Of our worldwide patent estate, only a subset of our patents and pending patent applications relates to our bempedoic acid program.

Bempedoic acid is claimed in U.S. Patent No. 7,335,799 that is scheduled to expire in December 2025, which includes 711 days of patent term adjustment, and we expect to receive a patent term extension of five years. We have one granted European patent that has been validated in numerous European countries including France, Germany, Great Britain, Ireland, Italy, the Netherlands, Spain, Sweden and Switzerland. We obtained five year patent term extensions via supplementary protection certificates for 24 national patents validated from the granted European patent, which extends our patent protection in those countries until 2028. Additionally, we have one patent family that includes U.S. Patent No. 11,407,705, directed to the method of manufacturing high purity bempedoic acid, one pending U.S. patent application directed to the same, U.S. Patent No. 11.613.511 directed to compositions of matter of high purity bempedoic acid, one pending U.S. patent application directed to the same, U.S. Patent No. 11,760,714 directed to pharmaceutical formulations containing the same, and U.S. Patent No. 11,926,584 directed to methods of lowering low-density lipoprotein cholesterol (LDL-C) using the same and one pending U.S. patent application directed to methods of treatment using the same, and 15 pending patent applications outside of the United States. U.S. Patent Nos. 11,407,705, 11,613,511, 11,760,714, and 11,926,584, and the other patent family members, if issued, are scheduled to expire in June 2040.

In addition, we have three patent families in which we are pursuing patent protection for our bempedoic acid and bempedoic acid / ezetimibe combination tablet in combination with one or more statins. Methods of treating familial

Table of Contents

hypercholesterolemia with the bempedoic acid / ezetimibe combination are claimed in U.S. Patent Nos. 10,912,751 and 11,744,816 that are scheduled to expire in March 2036. We also have one pending U.S. patent application, and 9 issued patents and 14 pending applications outside the U.S. with claims directed to methods of treatment using the bempedoic acid / ezetimibe combination. Additionally, we have one pending U.S. patent application, and 7 issued patents and 23 pending applications outside the U.S. directed to the manufacturing of our bempedoic acid / ezetimibe combination tablet. We also have one issued U.S. patent, i.e., U.S. Patent No. 11,116,739, one pending U.S. patent application, and 9 issued patents and 15 pending applications outside the U.S., with claims directed to fixed dose combinations of bempedoic acid and one or more statins and/or methods of using said fixed dose combinations. U.S. Patent No. 11,116,739 is scheduled to expire in March 2036.

We may not have identified all patents, published applications or published literature that affect our business either by blocking our ability to commercialize our products and drug candidates, by preventing the patentability of one or more aspects of our products and drug candidates to us or our licensors or co-owners, or by covering the same or similar technologies that may affect our ability to market our products and drug candidates. For example, we (or the licensor of a drug candidate to us) may not have conducted a patent clearance search to identify potentially obstructing third party patents. Moreover, patent applications in the United States are maintained in confidence for up to 18 months after their filing. In some cases, however, patent applications remain confidential in the U.S. Patent and Trademark Office, or the USPTO, for the entire time prior to issuance as a U.S. patent. Patent applications filed in countries outside of the United States are not typically published until at least 18 months from their first filing date. Similarly, publication of discoveries in the scientific or patent literature often lags behind actual discoveries. We cannot be certain that we or our licensors or co-owners were the first to invent, or the first to file, patent applications covering our products and drug candidates. We also may not know if our competitors filed patent applications for technology covered by our pending applications or if we were the first to invent the technology that is the subject of our patent applications. Competitors may have filed patent applications or received patents and may obtain additional patents and proprietary rights that block or compete with our patents.

Others may have filed patent applications or received patents that conflict with patents or patent applications that we own, have filed or have licensed, either by claiming the same methods, compounds or uses or by claiming methods, compounds or uses that could dominate those owned by or licensed to us. In addition, we may not be aware of all patents or patent applications that may affect our ability to make, use or sell any of our products or drug candidates. Any conflicts resulting from third-party patent applications and patents could affect our ability to obtain the necessary patent protection for our products or processes. If other companies or entities obtain patents with conflicting claims, we may be required to obtain licenses to these patents or to develop or obtain alternative technology. We may not be able to obtain any such licenses on acceptable terms or at all. Any failure to obtain such licenses could delay or prevent us from using discovery-related technology to pursue the development or commercialization of our products or drug candidates, which would adversely affect our business.

We cannot assure you that any of our patents have, or that any of our pending patent applications will mature into issued patents that will include, claims with a scope sufficient to protect bempedoic acid or the bempedoic acid / ezetimibe combination or any other product candidates. Others have developed technologies that may be related or competitive to our approach, and may have filed or may file patent applications and may have received or may receive patents that may overlap or conflict with our patent applications, either by claiming the same methods or formulations or by claiming subject matter that could dominate our patent position. The patent positions of biotechnology and pharmaceutical companies, including our patent position, involve complex legal and factual questions, and, therefore, the issuance, scope, validity and enforceability of any patent claims that we may obtain cannot be predicted with certainty. Patents, if issued, may be challenged, deemed unenforceable, invalidated, or circumvented. U.S. patents and patent applications may also be subject to interference proceedings, ex parte reexamination, inter partes review and post-grant review proceedings, supplemental examination and may be challenged in district court. Patents granted in certain other countries may be subjected to revocation, opposition or comparable proceedings lodged in various national and regional patent offices, and national courts. These proceedings could result in either loss of the patent or denial of the patent application or loss or reduction in the scope of one or more of the claims of the patent or patent application. For example, a European Unified Patent Court (UPC) came into force during 2023. The UPC is a common patent court to hear patent infringement and revocation proceedings effective for member states of the European Union. This could enable third parties to seek revocation of any of our European patents in a single proceeding at the UPC rather than through multiple proceedings in each of the jurisdictions in which the European patent is validated. Any such revocation and loss of patent protection could have a material adverse impact on our business and our ability to commercialize or license our technology and products. Moreover, the controlling laws and regulations of the UPC will develop over time, and may adversely affect our ability to enforce our European patents or defend the validity thereof. We may decide to opt out our European patents and patent applications from the UPC. If certain formalities and requirements are not met, however, our European patents and patent applications could be challenged for non-compliance and brought under the jurisdiction of the UPC. We cannot be certain that our European patents and patent applications will avoid falling under the jurisdiction of the UPC, if we decide to opt out of the UPC. Moreover, such interference, re- examination, post-grant review, inter partes review, supplemental examination, opposition, or revocation proceedings may be costly. Thus, any patents that we may own or exclusively license may not provide any protection against competitors. Furthermore, an adverse decision in an interference proceeding can result in a third-party receiving the patent right sought by us, which in turn could affect our ability to develop, market or otherwise commercialize bempedoic acid and the bempedoic acid / ezetimibe combination tablet.

Table of Contents

Furthermore, the issuance of a patent, while presumed valid and enforceable, is not conclusive as to its validity or its enforceability and it may not provide us with adequate proprietary protection or competitive advantages against competitors with similar products. Competitors may also be able to design around our patents. Other parties may develop and obtain patent protection for more effective technologies, designs or methods. We may not be able to prevent the unauthorized disclosure or use of our technical knowledge or trade secrets by consultants, vendors, former employees and current employees. The laws of some foreign countries do not protect our proprietary rights to the same extent as the laws of the United States, and we may encounter significant problems in protecting our proprietary rights in these countries. If these developments were to occur, they could have a material adverse effect on our sales.

Furthermore, given the amount of time required for the development, testing and regulatory review of new product candidates, patents protecting such candidates might expire before or shortly after such candidates are commercialized. We have submitted a request for a patent term extension in the United States for U.S. Patent No. 7,335,799 and have obtained supplementary protection certificates for one of the granted, counterpart European patents. In the United States, the Drug Price Competition and Patent Term Restoration Act of 1984 permits a patent term extension of up to five years beyond the normal expiration of the patent, but the total patent term including the restoration period must not exceed 14 years following FDA approval. However, the applicable authorities, including the FDA and the USPTO in the United States, and any equivalent regulatory authority in other countries, may not agree with our assessment of whether such extensions are available, and may refuse to grant extensions to our patents, or may grant more limited extensions than we request. If this occurs, our competitors may be able to take advantage of our investment in development and clinical trials by referencing our clinical and preclinical data and launch their product earlier than might otherwise be the case.

Our ability to enforce our patent rights depends on our ability to detect infringement. It is difficult to detect infringers who do not advertise the components that are used in their products. Moreover, it may be difficult or impossible to obtain evidence of infringement in a competitor’s or potential competitor’s product. Any litigation to enforce or defend our patent rights, if any, even if we were to prevail, could be costly and time-consuming and would divert the attention of our management and key personnel from our business operations. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded if we were to prevail may not be commercially meaningful.

In addition, proceedings to enforce or defend our patents could put our patents at risk of being invalidated, held unenforceable, or interpreted narrowly. Such proceedings could also provoke third parties to assert claims against us, including that some or all of the claims in one or more of our patents are invalid or otherwise unenforceable. If, in any proceeding, a court invalidated or found unenforceable our patents covering bempedoic acid or the bempedoic acid / ezetimibe combination tablet, our financial position and results of operations would be materially and adversely impacted. In addition, if a court found that valid, enforceable patents held by third parties covered bempedoic acid or the bempedoic acid / ezetimibe combination tablet, our financial position and results of operations would also be materially and adversely impacted.

Furthermore, in March 2024, we received notices from nine pharmaceutical companies (each, a “NEXLETOL ANDA Filer”), that each company had filed an Abbreviated New Drug Application, or ANDA, with the FDA seeking approval of a generic version of NEXLETOL. Subsequently, in April 2024, we received a notice from three pharmaceutical companies (each, a “NEXLIZET ANDA Filer” and together with the NEXLETOL ANDA Filers, each, an “ANDA Filer”) that the company had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET. The ANDAs each contained Paragraph IV certifications alleging that certain of our Orange Book listed patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted. It is possible that one or more additional companies may file with the FDA an ANDA for a generic version of, or an 505(b)(2) NDA that references, one or both of bempedoic acid or bempedoic acid / ezetimibe combination tablet, in which the competitor would claim that our patents are invalid or not infringed. Competition that our approved products could face from an approved generic and other versions of our approved products could materially and adversely affect our future revenue, profitability, and cash flows and substantially limit our ability to obtain a return on the investments we have made in developing bempedoic acid or bempedoic acid / ezetimibe combination tablet. For further details, please see our risk factor entitled “If the FDA, EMA or other comparable foreign regulatory authorities approve generic or other versions of bempedoic acid or the bempedoic acid / ezetimibe combination tablet, the sales of our approved products could be adversely affected.”

The degree of future protection for our proprietary rights is uncertain, and we cannot ensure that:

•any of our patents, or any of our pending patent applications, if issued, will include claims having a scope and patent term sufficient to protect bempedoic acid or the bempedoic acid / ezetimibe combination tablet;

•any of our pending patent applications will result in issued patents;

•we will be able to successfully commercialize bempedoic acid or the bempedoic acid / ezetimibe combination tablet in all of the jurisdictions we intend to pursue before our relevant patents expire;

•we were the first to make the inventions covered by each of our patents and pending patent applications;

Table of Contents

•we were the first to file patent applications for these inventions;

•others will not develop similar or alternative technologies that do not infringe our patents;

•any of our patents will be valid and enforceable;

•any patents issued to us will provide a basis for an exclusive market for our commercially viable products, will provide us with any competitive advantages or will not be challenged by third parties;

•we will develop additional proprietary technologies or product candidates that are separately patentable; or

•that our commercial activities or products, or those of our licensors, will not infringe upon the patents of others.

We rely upon unpatented trade secrets, unpatented know-how and continuing technological innovation to develop and maintain our competitive position, which we seek to protect, in part, by confidentiality agreements with our employees and our collaborators and consultants. We also have agreements with our employees and selected consultants that obligate them to assign their inventions to us. It is possible that technology relevant to our business will be independently developed by a person that is not a party to such an agreement. Furthermore, if the employees and consultants who are parties to these agreements breach or violate the terms of these agreements, we may not have adequate remedies for any such breach or violation, and we could lose our trade secrets through such breaches or violations. Further, our trade secrets could otherwise become known or be independently discovered by our competitors.

If the FDA, EMA or other comparable foreign regulatory authorities approve generic or other versions of bempedoic acid or the bempedoic acid / ezetimibe combination tablet, the sales of our approved products could be adversely affected.

Once a new drug application, or NDA, is approved, the product covered thereby becomes a “reference listed drug” in the FDA’s publication, “Approved Drug Products with Therapeutic Equivalence Evaluations,” commonly known as the Orange Book. Under the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act to the Federal Food, Drug, and Cosmetic Act, or FDCA, a company may seek approval of generic versions of reference listed drugs through submission of abbreviated new drug applications, or ANDAs, in the United States. In support of an ANDA, a generic manufacturer need not conduct clinical trials to assess safety and efficacy. Rather, the applicant generally must show that its product has the same active ingredient(s), dosage form, strength, route of administration and conditions of use or labelling as the reference listed drug and that the generic version is bioequivalent to the reference listed drug, meaning it is absorbed in the body at the same rate and to the same extent. Generic products may be significantly less costly to bring to market than the reference listed drug and companies that produce generic products are generally able to offer them at lower prices. Thus, following the introduction of a generic drug, a significant percentage of the sales of any branded product or reference listed drug is typically lost to the generic product.

Under the Hatch-Waxman Act, a company may also submit an NDA under Section 505(b)(2) of the FDCA that references the FDA’s prior approval of the innovator product. A 505(b)(2) NDA product may be for a new or improved version of the original innovator product. The Hatch-Waxman Act also provide for certain periods of regulatory exclusivity, which preclude FDA approval (or in some circumstances, FDA filing and review) of an ANDA or 505(b)(2) NDA until any applicable period of non-patent exclusivity for the reference listed drug has expired. For example, a new drug containing a new chemical entity, or NCE, may be eligible for five years of marketing exclusivity in the United States following regulatory approval if that drug is classified as a new chemical entity, or NCE. A drug can be classified as a NCE if the FDA has not previously approved any other drug containing the same active moiety.

In addition to the benefits of regulatory exclusivity, an innovator NDA holder may have patents claiming the active ingredient, product formulation or an approved use of the drug, which would be listed in the Orange Book. If there are patents listed in the Orange Book for a product, an ANDA or 505(b)(2) applicant that seeks to market its product before expiration of the innovator drug patents must include in their applications what is known as a “Paragraph IV” certification, challenging the validity or enforceability, or claiming non-infringement, of the listed patent or patents. Notice of the certification must be given to the patent owner and NDA holder and if, within 45 days of receiving notice, either the patent owner or NDA holder sues for patent infringement, approval of the ANDA or 505(b)(2) NDA is stayed for up to 30 months, or as lengthened or shortened by a court.

Accordingly, competitors could file ANDAs for generic versions or 505(b)(2) NDAs that reference our NEXLETOL and NEXLIZET products, which were granted marketing approval by the FDA on February 21, 2020 and February 26, 2020, respectively. For example, given that NEXLETOL was granted market exclusivity by the FDA on February 21, 2020, an ANDA or 505(b)(2) NDA referencing our NEXLETOL NDA may not be submitted to the FDA until the expiration of five years, e.g., February 21, 2025, unless the submission is accompanied by a Paragraph IV certification that a patent covering the reference listed drug is either invalid or will not be infringed by the generic or 505(b)(2) product, in which case the applicant

Table of Contents

may submit its application four years following approval of the reference listed drug, e.g., February 21, 2024, for NEXLETOL. Competitors may seek to launch generic or 505(b)(2) versions of NEXLETOL following the expiration of the applicable exclusivity period for NEXLETOL, even if we still have regulatory exclusivity and/or patent protection for NEXLETOL, and the same could happen for any of our other drug products upon approval.

In February 2024, we received notices from each NEXLETOL ANDA Filer that each company had filed an ANDA with the FDA seeking approval of a generic version of NEXLETOL. Subsequently, in [April] 2024, we received a notice from each NEXLIZET ANDA Filer that each company had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET. The ANDAs each contained Paragraph IV certifications alleging that certain of our patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted.

Under the FDCA, we have 45 days from receipt of the notice letters to commence patent infringement lawsuits against these generic drug manufacturers in a federal district court to trigger a stay precluding the FDA’s approval of any ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLETOL or NEXLIZET, as applicable, new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. We are conducting the necessary due diligence and intend to file lawsuits within the 45-day period.

The success of such litigation will depend on the strength of the patents covering NEXLETOL or NEXLIZET, as applicable, and our ability to prove infringement. The outcome of such litigation will be inherently uncertain and may result in potential loss of market exclusivity for NEXLETOL and/or NEXLIZET. Competition that NEXLETOL or NEXLIZET could face from an approved generic and other versions of NEXLETOL or NEXLIZET could materially and adversely affect our future revenue, profitability, and cash flows and substantially limit our ability to obtain a return on the investments we have made in developing NEXLETOL and NEXLIZET. Furthermore, the Federal Trade Commission, or FTC, has brought lawsuits to challenge ANDA litigation settlements as anti-competitive. If we settle any ANDA litigation, we may also face an FTC challenge with respect to the related settlement which may result in additional expense or penalty.

Table of Contents

Item 6. Exhibits

The exhibits filed or furnished as part of this Quarterly Report on Form 10-Q are set forth on the Exhibit Index, which Exhibit Index is incorporated herein by reference.

Table of Contents

EXHIBIT INDEX

Incorporated by Reference to:

Exhibit
No.

Description

Form or
Schedule

Exhibit
No.

Filing
Date with
SEC

SEC File
Number

3.1

Amended and Restated Certificate of Incorporation of the Registrant

8-K

3.2

June 12, 2013

333-188595

3.2

Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant

8-K

3.1

May 26, 2022

001-35986

3.3

Certificate of Validation relating to Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Registrant dated May 26, 2022

8-K

3.1

September 20, 2022

001-35986

3.4

Certificate of Amendment No. 2 to Amended and Restated Certificate of Incorporation of the Registrant

8-K

3.1

June 15, 2023

001-35986

3.5

Second Amended and Restated Bylaws of the Registrant dated April 29, 2021

10-Q

3.1

May 4, 2021

001-35986

4.1

Specimen Common Stock Certificate

S-1

4.1

June 12, 2013

333-188595

10.1 *

Confidential Settlement Agreement and Release, dated as of January 2, 2024, between the Registrant and Daiichi Sankyo Europe GmbH**

1 0.2 *

3rd Amendment to the License and Collaboration Agreement by and between the Registrant and Daiichi Sankyo Europe GMBH dated January 2, 2024 **

1 0.3 *

1st Amendment to License and Collaboration Agreement, by and between the Registrant and Daiichi Sankyo Company, Limited dated January 2, 2024**

31.1*

Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*

Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1+

Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.SCH*

Inline XBRL Taxonomy Extension Schema Document

101.CAL*

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB*

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*

Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF*

Inline XBRL Taxonomy Extension Definition Linkbase Document

104*

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)

Table of Contents

*Filed herewith.

** Portions of this exhibit (indicated by asterisks) have been omitted in accordance with the rules of the Securities and Exchange Commission.

+ The certification furnished in Exhibit 32.1 hereto is deemed to be furnished with this Quarterly Report on Form 10-Q and will not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	ESPERION THERAPEUTICS, INC.


May 7, 2024	By:	/s/ Sheldon L. Koenig
		Sheldon L. Koenig
		President and Chief Executive Officer
		(Principal Executive Officer)

May 7, 2024	By:	/s/ Benjamin Halladay
		Benjamin Halladay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Exhibit 10.1

CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [***] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE

This Confidential Settlement Agreement and Release (the “Settlement Agreement”) is made and entered into as of January 2, 2024 (the “SA Effective Date”) between Esperion Therapeutics, Inc. (“Esperion”), a Delaware corporation with offices at 3891 Ranchero Drive, Suite 150, Ann Arbor, Michigan, USA 48108, and Daiichi Sankyo Europe GmbH (“DSE”), a company with limited liability incorporated under German law with offices at Zielstattstr 48, 81379 Munich, Germany. Esperion and DSE may each be referred to herein individually as a “Party” and collectively as the “Parties.”

WHEREAS, Esperion and, as applicable, DSE or Daiichi Sankyo Company, Limited (“DS”) are parties to various agreements, including, without limitation, a License and Collaboration Agreement dated January 2, 2019 (as amended on June 18, 2020 and March 19, 2021, the “EU License Agreement”), pursuant to which Esperion granted DSE exclusive rights to market and sell its bempedoic acid product and bempedoic acid and ezetimibe combination product in certain European countries specified therein (the “DSE Territory”), a License and Collaboration Agreement dated April 26, 2021, pursuant to which Esperion granted DS exclusive rights to market and sell the bempedoic acid product and bempedoic acid and ezetimibe combination product in certain territories in Asia and/or South or Central America specified therein (the “ASCA License Agreement”), a Manufacturing and Supply Agreement, dated July 30, 2019 (as amended on November 20, 2020, the “EU Supply Agreement”), and a Manufacturing and Supply Agreement, dated July 27, 2021 (the “ASCA Supply Agreement” and, together with the EU Supply Agreement, the “Supply Agreements” and, together with the EU License Agreement and the ASCA License Agreement, “the Agreements”).

WHEREAS, Esperion filed a complaint for declaratory relief against DSE on March 27, 2023, last amended on May 4, 2023, in the United States District Court for the Southern District of New York, Case No. 23-cv-02568-ER (the “Litigation”);

WHEREAS, Esperion requested from the Court certain declarations regarding the EU License Agreement and the conditions for triggering the Regulatory Milestone Payment;

WHEREAS, DSE asked the Court to deny Esperion’s requested declaratory relief, and instead requested from the Court alternative declarations regarding the EU License Agreement and the conditions for triggering the Regulatory Milestone Payment;

WHEREAS, the Parties have negotiated a resolution of the claims asserted in the Litigation and any other disputes between the Parties related to the EU License Agreement or the EU Supply Agreement, including any and all claims that have been asserted, or could have been asserted, in the Litigation, or with respect to the Regulatory Milestone Payment in Section 9.2 of the EU License Agreement; and

WHEREAS, without admitting any liability on either part, the Parties now wish to settle the Litigation amicably in accordance with the terms of this Settlement Agreement.

NOW, THEREFORE, with the intent and purpose of settling the Litigation, satisfying any and all obligations related to the Regulatory Milestone Payment in the EU License Agreement, and, with regards to the EU License Agreement, the ASCA License Agreement and the Supply Agreements, adjusting certain other rights and obligations in their collaboration, and in consideration of the promises and covenants set forth in this Settlement Agreement, the Parties agree as follows.

Capitalized terms used herein without definition have the meanings ascribed to them in the EU License Agreement, the ASCA License Agreement, the EU Supply Agreement or the ASCA Supply Agreement, as applicable.

1.Amendment and Transition of API and Bulk Product Supply for DSE and DS Territories. Esperion and DSE (on behalf of itself and DS) each hereby approve the Technology Transfer Agreement attached hereto as Exhibit A to be in final, execution form. Concurrently with this Settlement Agreement, Esperion and DSE are executing such Technology Transfer Agreement and, as promptly as practicable after the SA Effective Date, DS shall execute such Technology Transfer Agreement.

2.Triple Combination Product Expansion in EU License Agreement and ASCA License Agreement. Esperion and DSE each hereby approve the Third Amendment to the EU License Agreement attached hereto as Exhibit B to be in final, execution form, and, concurrently with this Settlement Agreement, Esperion and DSE are executing such Third Amendment to the EU License Agreement. Esperion and DSE (on behalf of itself and DS) each hereby approve the First Amendment to the ASCA License Agreement attached hereto as Exhibit C to be in final, execution form, and concurrently with this Settlement Agreement, Esperion, and, as promptly as practicable after the SA Effective Date, DS, are executing such First Amendment to the ASCA License Agreement. As set forth in such attached amendments, DSE in the DSE Territory and DS in the DS Territory, respectively, are granted an exclusive license under the Esperion Technology to develop and commercialize TC Products, but neither DSE nor DS is under any obligation to use Commercially Reasonable Efforts to so develop and commercialize the TC Products in, respectively, the DSE Territory and the DS Territory (as each such terms are defined in such applicable attached amendment).

3.Cash Payments. As consideration for the rights and obligations in this Settlement Agreement (including without limitation resolution of the declarations sought in the Litigation and in exchange for Esperion forgoing as set forth below all rights or claims to the Regulatory Milestone Payment in the EU License Agreement), the Technology Transfer Agreement, and the amendments to the EU License Agreement and the ASCA License Agreement, DSE agrees to pay Esperion:

a.One Hundred Million United States Dollars ($100,000,000) within [***] of the later of the SA Effective Date and receipt from Esperion of an invoice for such amount, provided the invoice cannot be issued prior to the SA Effective Date;

b.Twenty-five Million United States Dollars ($25,000,000) in the [***] following the calendar quarter in which the European Medicines Agency (the “EMA”) decides on the pending CVOT Application; provided, however, that DSE covenants it will not withdraw the pending CVOT Applications without simultaneously submitting replacement CVOT Applications that DSE will allow to remain pending for decision by EMA, where “CVOT Applications” mean the applications filed with the EMA for a Type II(a) variation for the oral non-statin products marketed as Nilemdo® and Nustendi® in Europe seeking the EMA’s approval of such products to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease.

Payments to Esperion shall be made by wire transfers to the account specified below. Esperion represents and warrants that the wiring information set forth below is true and accurate.

Receiving Bank: [***]

Receiving Bank Address: [***]

[***]

PNC Bank ABA (for wires): [***]

Beneficiary: [***]

Beneficiary Account No: [***]

Bank Country Code: [***]

Swift Code: [***]

4.Nilemdo® and Nustendi® EMA Label Strategy. As of the SA Effective Date, DSE shall have sole authority and control of discussions with the EMA, and any country-specific regulatory authority in the DSE Territory, regarding the pending marketing authorization applications for Nilemdo® and Nustendi®. Esperion agrees to provide DSE any necessary support or information (in Esperion’s possession and control) to allow DSE to communicate effectively with EMA regarding such pending applications, including without limitation any such information relating to the CLEAR Outcome Study.

5.Dismissal of Litigation. In consideration of the good and valuable consideration provided by this Settlement Agreement, Esperion agrees to dismiss, with prejudice and without any award of fees, costs, or expenses of any kind in favor of any Party, the Litigation against DSE. To effect such dismissal, the Parties agree to file a joint stipulation and proposed order of dismissal of the Litigation with prejudice pursuant to Federal Rule of Civil Procedure 41. On or before January 2, 2024, the Parties shall jointly notify the Honorable Edgardo Ramos (the judge presiding over the Litigation), or any successor judge should the case be transferred, of the Parties’ settlement, and request that any pending motions, discovery, or other deadlines be held in abeyance pending the Court’s order dismissing the Litigation.

6.Mutual Release of Claims. Each Party acknowledges that this Settlement Agreement fully and finally resolves all claims, contentions, and allegations it has or may have, from the beginning of time to the SA Effective Date, arising out of or in any way relating to the EU License Agreement, the ASCA License Agreement, the Supply Agreements, and the

Litigation. In consideration of this Settlement Agreement and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, and effective upon the SA Effective Date, each Party, on behalf of itself and each of its respective assigns, affiliates, predecessors, successors, agents, employees, attorneys, and anyone who claims or may claim by and/or through any of the foregoing and/or in their stead (collectively, the “Releasors”), does hereby release and forever discharge the other Party and each of its current and former parents, subsidiaries, related entities, affiliates, predecessors, successors, heirs, executors, administrators, assigns, owners, officers, principals, employees, shareholders, directors, managers, partners, investors, attorneys, insurers, accountants, legal representatives, and agents (collectively, the “Released Parties”), of and from any and all manner of action or actions, causes of action in law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims, demands, damages, attorneys’ fees, losses, costs or expenses, of any nature whatsoever, known or unknown, foreseen or unforeseen, disclosed or undisclosed, fixed or contingent, accrued or unaccrued, liquidated or unliquidated, potential or actual, from the beginning of time to the SA Effective Date, arising out of or relating in any way to the EU License Agreement, the Regulatory Milestone Payment, the ASCA License Agreement, the Supply Agreements, and the Litigation , including without limitation any market response or investor reaction to public disclosures related to the Litigation, the Regulatory Milestone Payment, the Parties’ respective positions as to whether Esperion satisfied the requirements of the Regulatory Milestone Payment, and any of the Parties’ conduct alleged or discussed therein (collectively, the Released Claims”); provided, however, that the Released Claims shall not include, and the Releasors shall not hereby be deemed to have released the Released Parties in respect of, any claims or rights that are based upon an alleged breach or non-performance of this Settlement Agreement or that seek to effectuate the terms of this Settlement Agreement.

Without limiting the generality of the foregoing, the Parties also agree that the Cash Payments identified in Section 3 of this Settlement Agreement are in full satisfaction of any claim by Esperion to any Regulatory Milestone Payment under the EU License Agreement and shall forever extinguish any such claim, irrespective of the EMA’s decision on the proposed label in the CVOT Application(s). Through this Settlement Agreement, Esperion is forgoing, waiving and/or releasing any and all claims to the Regulatory Milestone Payment in the EU License Agreement. Upon execution of this Settlement Agreement, Section 9.2 of the EU License Agreement is hereby deleted in its entirety.

For the purpose of implementing a full and complete release and discharge of all Released Claims, the Releasors expressly acknowledge that this Settlement Agreement and its releases are intended to include in their effect all of the claims against the Released Parties, whether or not the Releasors know or suspect such to exist at the time of execution of this Settlement Agreement, and that this Settlement Agreement contemplates the extinguishment of all such claims.

Without limiting the generality of the foregoing, the Releasors acknowledge, understand, and agree that they have waived and relinquished all rights under California Civil Code Section 1542 (and any similar provision of law of any other jurisdiction), which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

In connection with such waiver and relinquishment, the Releasors expressly acknowledge that they are aware that they may hereafter discover facts in addition to or different from those which they now know or believe to be true with respect to the subject matter of this Settlement Agreement, but it is their intention to fully, finally, and forever settle and release all released matters, claims, disputes, and differences comprising the Released Claims, known or unknown, suspected or unsuspected, which now exist or heretofore existed and that, in furtherance of such intention, this Settlement Agreement shall be and remain in effect as a full and complete general release, notwithstanding the discovery or existence of any such additional or different matters, disputes, complaints, claims, disagreements, or facts.

7.Covenant Not to Sue. In furtherance of the foregoing mutual releases, each Party hereby covenants to the other Party never to file or prosecute, or permit the filing or prosecution of, a new lawsuit, complaint, or charge against such other Party based on the Released Claims, including any claim to any Regulatory Milestone Payment under the EU License Agreement, except to enforce the Settlement Agreement.

8.No Reimbursement of Costs, Attorneys’ Fees, or Expenses. Each Party shall bear its own costs with respect to the Litigation and this Settlement Agreement. The Parties hereby waive and release any and all claims arising out of this Settlement Agreement for attorneys’ fees and costs.

9.Confidential Treatment of Settlement Agreement. Apart from the Parties’ agreed joint announcement of the resolution of the Litigation, each Party shall keep strictly confidential the terms of this Settlement as well as the substance and details of the Parties’ dispute. Notwithstanding the foregoing sentence, each Party may disclose the terms of this Settlement Agreement: (a) to such Party’s attorneys, agents, accountants, tax consultants, or other advisors; (b) when reasonably related to the enforcement of this Settlement Agreement; and (c) as required by law.

10.Non-Disparagement. Each Party represents and agrees that it will not: (a) disparage or cause any other person to disparage the other Party or any of the other Party’s products or services; (b) take any action that is intended or could reasonably be expected to harm either the other Party or its reputation or that would reasonably be expected to lead to unwanted or unfavorable publicity for the other Party; (c) make any statements that claim or assert that one Party prevailed in the Litigation and/or the other Party did not; and (d) make any statements as to alleged strength(s) or weakness(es) of either Party’s position in the Litigation. Each Party further represents and agrees that, in the event it is notified by the other Party that any individual or entity affiliated with the notified Party has disparaged or is disparaging the other Party, or otherwise making statements in violation of subsections (a) through (d) above, then the notified Party will take reasonable steps to instruct or direct such affiliated individual or entity to refrain from any such disparagement or statements, and will promptly notify the other Party that it has taken

such steps. Notwithstanding the foregoing, nothing in this Section 10 shall prohibit either of the Parties from providing truthful information in response to a valid subpoena or other legal process or as otherwise required by law.

11.Joint Press Release. The Parties agree to issue the joint press release attached hereto as Exhibit D on or before January 2, 2024.

12.Governing Law; Waiver of Jury Rights. This Settlement Agreement shall be construed, and all disputes arising out of or relating to this Settlement Agreement shall be resolved, according to the laws of New York, without regard to any choice of law provisions thereof. The Parties hereby waive their rights to a jury trial for any disputes arising out of this Settlement. Each Party by its execution hereof, [***]. Each undersigned counsel warrants that it is authorized to sign on behalf of its respective client(s), as indicated, and to bind them to the terms and conditions of this Settlement Agreement. This Settlement Agreement may be executed by facsimile or scanned pages and in one or more counterparts, and the counterparts when executed may be made into a composite which shall constitute one integrated original agreement.

13.Further Assurances. The Parties shall execute such additional instruments and take any and all such further actions as may be reasonably required or necessary to carry out the provisions of this Settlement Agreement and the transactions contemplated hereby.

14.Successors in Interest. The Parties agree that this Settlement Agreement shall be binding upon the Parties, and, as applicable, upon their heirs, executors, administrators, dependents, predecessors, successors, subsidiaries, divisions, affiliates, and related entities, and their current officers, directors, partners, employees, attorneys, assigns, agents, representatives, and any or all of them.

15.No Admissions. The Parties agree that neither this Settlement Agreement nor any of the terms herein or exhibits attached hereto constitute any admission of liability or wrongdoing by any Party.

16.Authority to Release Claims; No Assignment of Released Claims. Each Party warrants that it has the power, right, and authority to release fully and completely all claims that it is resolving and releasing in this Settlement Agreement. Each Party warrants and represents that it owns and controls each of the Released Claims, claims, causes of action, or other matters that are released by this Settlement Agreement and that it has not assigned or transferred to any other person any of the Released Claims, claims, causes of action, or other matters that are released by this Settlement Agreement.

17.Counterparts; Electronic Transmission. This Settlement may be executed in counterparts and via electronic submission. An executed document delivered via fax or electronic means shall be treated as an original.

18.Construction; Recitals. The headings of the sections of this Settlement Agreement are for convenience of reference only and shall not affect the meaning or interpretation of this Settlement Agreement. It is understood and acknowledged that this Settlement Agreement shall be deemed to have been drafted jointly by the Parties and shall not be

construed in favor of or against any Party by reason of the extent to which any Party or its counsel has participated in the drafting of this Settlement Agreement. The Recitals set forth at the beginning of this Settlement Agreement are incorporated herein by reference to the same extent and with the same force and effect as if fully set forth herein.

19.Entire Agreement. This Settlement Agreement constitutes the entire agreement between the Parties who have executed it with respect to the subject of settlement and supersedes any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, express or implied, between the Parties with respect to the subject matter of this Settlement Agreement. The Parties each acknowledge (a) that no representations, inducements, promises, agreements, or warranties, oral or otherwise, with respect to the subject matter of this Settlement Agreement have been made by or to them, or anyone acting on their behalf, which are not embodied in this Settlement Agreement, (b) that they have not executed this Settlement Agreement in reliance on any such representation, inducement, promise, agreement or warranty, and (c) that no representation, inducement, promise, agreement or warranty not contained in this Settlement Agreement, including, but not limited to, any purported supplements, modifications, waivers, or terminations of this Settlement Agreement, shall be valid or binding, unless executed in writing by all of the Parties.

20.Modifications. All terms, conditions, and obligations contained in this Settlement Agreement can be waived or modified only by written agreement signed by both Parties. Forbearance or indulgence in any form or manner or course of dealing by a Party shall not be construed as a waiver, nor in any way limit the remedies available.

21.Severability. If any provision of this Settlement Agreement is held invalid by a court with jurisdiction over the Parties, such provision shall be deemed to be restated to reflect as nearly as possible the original intentions of the Parties in accordance with applicable law, if and only to the extent possible, and the remainder of this Settlement Agreement shall remain in full force and effect as if the Settlement Agreement had been entered into without the invalid portion.

22.Finality; No Reliance. This Settlement Agreement is intended to be final, enforceable, and binding between the Parties hereto, and is further intended to be effective as a full and final accord and satisfaction between them in respect of the Released Claims and any other cause of action or disputed matter arising from or in connection with the Litigation, the EU License Agreement, the ASCA License Agreement, the Supply Agreements, or the Regulatory Milestone Payment. Each Party relies on the finality of this Settlement Agreement as a material factor inducing that Party’s execution of this Settlement Agreement. Furthermore, each Party fully understands the meaning, effect, significance, and consequence of each and every provision of this Settlement Agreement, and each Party expressly acknowledges and represents that, in executing this Settlement Agreement, it has not relied on any inducements, promises, or representations made by the other Party hereto or any person or entity representing such other Party. Additionally, each Party hereto acknowledges and represents that it is executing this Settlement Agreement freely and voluntarily, after consulting with its respective attorneys, and with the belief that this Settlement Agreement is fully binding and enforceable.

23.Advice of Counsel. Each of the Parties represents that it has: (i) been adequately represented, or had the opportunity to be represented, by independent legal counsel of its own choice, throughout all of the negotiations that preceded the execution of this Settlement Agreement; (ii) executed this Settlement Agreement with the consent and upon the competent advice of such counsel, or had the opportunity to seek such consent and advice; (iii) read this Settlement Agreement and understands and assents to all the terms, conditions, and provisions contained in this Settlement Agreement without any reservations; and (iv) had, or had the opportunity to have had, all the terms, conditions, and provisions contained in this Settlement Agreement explained to it by its own counsel, who have answered any and all questions which have been asked of them, or which could have been asked of them, with regard to the meaning of any of the terms, conditions, or provisions of this Settlement Agreement.

24.Authority to Sign. The persons executing this Settlement Agreement on behalf of the Parties hereto warrant that (i) each such Party is duly organized and existing, (ii) each such person is duly authorized to execute and deliver this Settlement Agreement on behalf of said Party and to bind that Party, including its members, agents and assigns, (iii) by so executing this Settlement Agreement, such Party is formally bound to the provisions of this Settlement Agreement, and (iv) the Party’s entering into this Settlement Agreement does not violate any provision of any other agreement to which said Party is bound.

THIS SETTLEMENT AGREEMENT has been agreed and executed by the Parties by their authorized representatives below as of the SA Effective Date.


Esperion Therapeutics, Inc.			Daiichi Sankyo Europe GmbH
By: /s/ Authorized Signatory Name (Printed): [*] Title: [*]			By: /s/ Authorized Signatory Name (Printed): [*] Title: [*]

Name (Printed): [***]			Name (Printed): [***]

Title: [***]			Title: [***]


			By: /s/ Authorized Signatory Name (Printed): [*] Title: [*]

			Name (Printed): [***]

			Title: [***]

Exhibit A

Technology Transfer Agreement

[***].

Exhibit B

Third Amendment to EU License Agreement

[***].

Exhibit C

First Amendment to ASCA License Agreement

[***].

Exhibit D

Joint Press Release

Attached.

Exhibit 10.2

CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [***] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

3rd AMENDMENT

TO THE

LICENSE AND COLLABORATION AGREEMENT

by and between

DAIICHI SANKYO EUROPE GMBH

and

ESPERION THERAPEUTICS, INC.

January 2, 2024

THIS 3rd AMENDMENT to the LICENSE AND COLLABORATION AGREEMENT (this “3rd Amendment”), entered into as of January 2, 2024 (the “3rd Amendment Effective Date”), is entered into by and between Daiichi Sankyo Europe GmbH, a corporation organized and existing under the laws of Germany (“DSE”) and Esperion Therapeutics, Inc., a corporation organized and existing under the laws of the state of Delaware (“Esperion”). DSE and Esperion are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

WHEREAS, Esperion and DSE are parties to that certain License and Collaboration Agreement, dated and effective as of January 2, 2019, as amended on June 18, 2020 and March 19, 2021 (the “LCA”), and that certain Manufacturing and Supply Agreement by and between DSE and Esperion, dated and effective as of July 30, 2019, as amended on November 20, 2020 (the “DSE Supply Agreement”);

WHEREAS, disputes and litigation arose between DSE and Esperion as to their respective rights and obligations under the LCA and the DSE Supply Agreement, which disputes and litigation were fully and finally resolved pursuant to that certain Confidential Settlement Agreement And Release, dated as of January 2, 2024 (“the Settlement Agreement”); and

WHEREAS, Section 2 of the Settlement Agreement requires the Parties to amend the LCA as provided herein.

NOW, THEREFORE, for good and valuable consideration, including the payments to be made by DSE to Esperion pursuant to the Settlement Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

1.Defined Terms. Except as defined herein, all capitalized terms used in this 3rd Amendment have the meaning set forth in the LCA.

2.LCA Amendments. The LCA is hereby amended as follows:

a.Definitions.

i.Section 1.32 (DSE Know-How), Section 1.46 (Esperion Territory), Section 1.77 (Licensed Products) and Section 1.118 (Territory) are hereby deleted in their entirety and replaced with:

“DSE Know-How” means Know-How Controlled by DSE or any of its Affiliates during the Term, that arises out of the performance of obligations or exercise of rights hereunder, and that is necessary or useful to the Development, Manufacture or Commercialization of the Licensed Products, including the TC Products Data but excluding Joint Know-How.

“Esperion Territory” means worldwide excluding the DSE Territory and DS Territory.

“Licensed Products” means (a) any pharmaceutical agent which includes Bempedoic Acid in any formulation, presentation and strength, including but not limited to the Licensed Product described in Schedule 1.77, and (b) any pharmaceutical agent that is a combination of Bempedoic Acid, Ezetimibe and a Statin, as its sole active ingredients, in any formulation, presentation and strength (a “Triple Combination Product” or “TC Product”).

“Territory” means the Esperion Territory, the DSE Territory and the DS Territory.

ii.The following terms are added to Section 1 (Definitions):

“ASCA License Agreement” means that certain License and Collaboration between Esperion and Daiichi Sankyo Company, Limited, dated and effective as of April 26, 2021, as amended on January 2, 2024.

“Business Day” means any day other than (a) Saturday or Sunday, (b) any other day on which national banks in Ann Arbor, Michigan are generally permitted or required to be closed, (c) any other day on which national banks in Munich, Germany are generally permitted or required to be closed, or (d) the nine (9) consecutive days beginning on December 24th and continuing through January 1st to the extent not already covered in (a), (b) or (c).

“DS Territory” has the meaning ascribed to such term in the ASCA License Agreement.

“DSE Supply Agreement” has the meaning set forth in Section 5.1 (Licensed Products Other than TC Products).

“Esperion Assistance” has the meaning set forth in Section 2.1.1(b) (TC Products Development).

“Ezetimibe” means the azetidinone derivative having the chemical formula (1-(4-fluorophenyl)-(3R)-[3-(4-fluorophenyl)-(3S)-hydroxypropyl]-(4S)-(4-hydroxyphenyl)-2-azetidinone).

“Hourly Cost” means the Hourly Rate multiplied by the number of hours, or portion thereof, actually spent by Esperion’s employees in performing the assistance contemplated under Section 2.1.1(b) (TC Products Development).

“Hourly Rate” means, for the first [***] hours of work performed by Esperion employees, [***], and after such first [***] hours of work, until such time as the Parties agree otherwise, [***], subject to annual increases beginning on [***] to reflect percentage increase in the Consumer Price Index for the US City Average, calculated by the Bureau of Labor Statistics during the immediately preceding Calendar Year and similarly calculated year to year increases each subsequent Calendar Year.

“Launch” means, for a Licensed Product in the DSE Territory, the anticipated date of the First Commercial Sale for such Licensed Product in the DSE Territory as determined by DSE or any of its Related Parties.

“Statin” means an HMG-CoA reductase inhibitor for the reduction of low-density lipoprotein (LDL) cholesterol.

“TC Products Data” has the meaning set forth in Section 12.1.2 (a) (Ownership).

“TC Products Development” has the meaning set forth in Section 2.1.1(a) (TC Products Development).

“Technology Transfer Agreement” has the meaning set forth in Section 5.1 (Licensed Products other than TC Products).

“Triple Combination Product” or “TC Product” has the meaning set forth in Section 1.77(b) (Licensed Products).

b.Development

i.The following is hereby added as a new Section 2.1.1 and current Sections 2.1.1 (Overview; Esperion Global Development Plan), 2.1.2 (Diligence; Compliance) and 2.1.3 (Performance) are renumbered as necessary:

2.1.1 TC Products Development.

(a) Subject to Section 2.1.1(b), DSE shall be and remain solely responsible for and have sole decision-making right over, [***], all Development activities for any TC Product, including any Post- Approval Studies relating to such TC Product, in support of obtaining Regulatory Approval for and Commercializing such TC Product in the DSE Territory (the “TC Products Development”). All TC Products Development shall be in DSE’s sole discretion, and DSE shall have no obligation to perform any TC Products Development.

(b) DSE will have the right to request reasonable assistance from Esperion in connection with the performance of any activities constituting TC Products Development. Within [***] of any such request by DSE, the Parties shall discuss in good faith and agree in writing the assistance to be provided by Esperion (including timelines and corresponding budget) (the “Esperion Assistance”). Promptly following the end of each Calendar Quarter, Esperion will issue to DSE an invoice for the amount of Hourly Costs and Out-of-Pocket Costs incurred by or on behalf of Esperion in the performance of the Esperion Assistance in accordance with the budget agreed upon by the Parties. DSE will pay to Esperion the undisputed amount of each such invoices within [***] of DSE’s receipt of the applicable invoice.

ii.As used in each of Section 2.1.2 (Overview; Esperion Global Development Plan), Section 2.1.3 (Diligence; Compliance) and Section 2.1.4 (Performance) (after giving effect to the amendment set forth in Section 2.b.i herein), the term “Licensed Product” excludes any TC Product.

iii.As used in Section 2.2 (Product Development), and all of its subsections, the term “Licensed Product” excludes any TC Product.

iv.The following is added as a new last sentence to Section 2.2.1 (Product Development Activities): “A TC Product shall not be deemed a PDA New Product Project.”

v.Section 2.3 (Records, Reports and Information Sharing) (together with all of its subsections except for clause (i) in Section 2.3.3) and Section 2.4 (Third Parties) (except for its clause (c)) will apply mutatis mutandis to DSE and to a TC Product; specifically, all instances of “Esperion” will be replaced by “DSE” and all instances of “Licensed Product” will be replaced by “TC Product”.

c.Regulatory Matters.

i.As used in each of Section 3.1 (Ownership of Regulatory Filings), Section 3.2 (Responsibility for Regulatory Matters), Section 3.3 (Communications with Regulatory Authorities), Section 3.4 (Meetings with Regulatory Authorities) and Section 3.5 (Submissions), and each of such Sections’ respective subsections, the term “Licensed Product” excludes any TC Product.

ii.The following is hereby added as a new Section 3.6 and current Sections 3.6 (Pricing and Reimbursement Approvals), 3.7 (Right of Reference) and 3.8 (Pharmacovigilance) are renumbered as necessary.

3.6 TC Products Regulatory Matters.

(a) Responsibility for Regulatory Matters and Ownership of Regulatory Filings for TC Products. DSE will be solely responsible, [***], for all regulatory matters involving the TC Products in each jurisdiction in the DSE Territory (as determined on a regulatory jurisdiction by-regulatory jurisdiction basis), including (i) overseeing, monitoring and coordinating all regulatory actions, communications and filings with, and submissions to, each Regulatory Authority with respect to the TC Products, (ii) interfacing, corresponding and meeting with each Regulatory Authority with respect to the TC Products, (iii) seeking and maintaining all Regulatory Approvals for the TC Products, and (iv) maintaining and submitting all records required to be maintained or required to be submitted to any Regulatory Authority with respect to the TC Products, in each case ((i) – (iv)) in the DSE Territory. DSE will own all Regulatory Approvals and related Regulatory Documentation submitted to any Regulatory Authority for any TC Product in the DSE Territory.

(b) Communications with Regulatory Authorities involving TC Products. DSE will own and respond to all communications with each Regulatory Authority in the DSE Territory involving the TC Products. Within [***] after receipt of any Material Communication from

such Regulatory Authority involving any TC Product (including any in-person meeting such Regulatory Authority), DSE will provide Esperion with a brief written description of the principal issues raised in such Material Communication with such Regulatory Authority. Upon Esperion’s reasonable request after receiving a notice from DSE in accordance with the immediately preceding sentence, DSE will provide to Esperion complete copies of such correspondence or meeting minutes, as applicable, of any such Material Communication within a reasonable period of time.

(c) Submissions to Regulatory Authorities involving TC Products. As determined on a regulatory jurisdiction-byregulatory jurisdiction basis in the DSE Territory, with respect to each TC Product, DSE will own and control all submissions to Regulatory Authorities in the DSE Territory involving the TC Products. With respect to each TC Product, DSE will notify Esperion about each of the following events in the DSE Territory: (i) planned submissions of any filings or applications for Regulatory Approval of such TC Product to any Regulatory Authority with at least [***]’s prior written notice prior to the intended submission date, (ii) confirmation of the submission date of a filing or application for Regulatory Approval of such TC Product to any Regulatory Authority, and (iii) receipt or denial of Regulatory Approval for such TC Product promptly after receipt. Without limiting the foregoing, DSE will allow Esperion a reasonable opportunity to review and comment on all filings and other submissions to Regulatory Authorities or other Governmental Authorities in the DSE Territory for a TC Product in advance of submitting any such filings or other submissions (such as, but not limited to, post-approval variations e.g. label updates, Quality Changes). DSE will consider all comments timely provided by Esperion in connection therewith and accept such comments if reasonable.

(d) Esperion Regulatory Assistance. DSE will have the right to request reasonable support and assistance from Esperion in connection with developing answers to questions and advice sought by DSE in connection with regulatory matters involving any TC Product in the DSE Territory, including with respect to communications with and submissions to Regulatory Authorities. Following any such request by DSE, Esperion agrees to use Commercially Reasonable Efforts to provide such reasonable regulatory support and assistance to DSE. Promptly following the end of each Calendar Quarter during which Esperion or any of its Affiliate have provided any such support or assistance to DSE, Esperion will issue to DSE an invoice for the amount of Hourly Costs and Out-of-Pocket Costs incurred by or on behalf of Esperion in the performance of such activities. DSE will pay to Esperion the undisputed amount of each such invoices within [***] of DSE’s receipt of the applicable invoice.

iii.The last sentence of Section 3.7 (Pricing and Reimbursement Approvals) (after giving effect to the amendment set forth in Section 2.c.ii herein) is hereby deleted in its entirety and replaced with the following:

“Except with respect to a TC Product, Esperion shall reasonably cooperate with DSE in connection therewith, including executing such documents as well as providing access to all necessary data in Esperion’s Control and not previously made available to DSE, such as patient-level data, all Regulatory Documentation, publication plan and manuscripts under preparation, support with the necessary data-analyses (bio-statistical analyses), as may be necessary to confirm DSE’s rights to prepare, submit, and obtain such Pricing Approvals for the Licensed Product in the DSE Territory.”

d.Commercialization.

i.Section 4.1.3 (DSE Commercial Diligence) is hereby deleted in its entirety and replaced with the following:

4.1.3. DSE Commercial Diligence. Without limiting the foregoing, DSE will use Commercially Reasonable Efforts to Commercialize each Licensed Product that is not a TC Product throughout the DSE Territory; [***], then DSE [***].

ii.Section 4.1.4 (Selected Clinical Activities) is hereby amended to replace: [***].

iii.The first two (2) sentences of Section 4.2.1 (Initial DSE Territory Commercialization Plan) are hereby deleted in their entirety and replaced with the following:

“DSE shall deliver to the JCC an initial written plan setting forth a summary of the anticipated activities to be undertaken by or on behalf of DSE in connection with the Commercialization of such Licensed Product in the DSE Territory (each, a “DSE Territory Commercialization Plan”), [***]. Each DSE Territory Commercialization Plan shall describe, an outline of the Commercialization activities for each Licensed Product in the DSE Territory, including [***].

And, the following is added as a new last sentence to Section 4.2.1 (Initial DSE Territory Commercialization Plan): “The Parties agree that the respective DSE Territory Commercialization Plans for the Licensed Products NILEMDO™ and NUSTENDI™ have been delivered by DSE to the JCC in accordance with this Section 4.2.1 (Initial DSE Territory Commercialization Plan).”

e.Manufacture and Supply.

i.Sections 5.1 (Manufacturing Responsibility) (and its subsections) and 5.2 (Supply Price) are hereby deleted in their entirety and replaced with the following:

5.1 Licensed Products other than TC Products. Esperion and DSE are parties to that certain Manufacturing and Supply Agreement, dated and effective as of July 30, 2019, as amended on November 20, 2020 (the “DSE Supply Agreement”) and (together with Daiichi Sankyo Company Limited) that certain Technology Transfer Agreement, dated and effective as of the effective date of the third amendment to this Agreement (the “Technology Transfer Agreement”), which, as between the Parties hereto, govern their respective rights and obligations with respect to the manufacture and supply of bulk drug product form of the Licensed Products (other than TC Products) for Commercialization in the DSE Territory.

5.2 TC Products. DSE will (a) have the exclusive right and responsibility to Manufacture and supply, [***], either itself or through a Third Party manufacturer, the TC Products for Development and Commercialization thereof by or on behalf of DSE in the DSE Territory under this Agreement, and (b) be responsible, at its own cost and expense, for supplying all quantities of the TC Products for use in the performance of activities as part of any Esperion Assistance, as may be applicable. In the event DSE desires for Esperion to Manufacture or supply bulk drug product form of any TC Products, the Parties shall use Commercially Reasonable Efforts to negotiate a manufacturing and supply arrangement therefor.

f.JCC Responsibility.

i.Section 6.1.6 (JCC Responsibilities) is hereby deleted in its entirety and replaced with the following:

6.1.6. JCC Responsibilities. The JCC shall be limited to the following responsibilities in connection with this Agreement:

(a) reviewing the status of Licensed Products other than TC Products, including material Development and Manufacturing matters;

(b) approval of any request by DSE to conduct a Selected Clinical Activity for a Licensed Product other than a TC Product by or under the oversight of DSE in the DSE Territory, including the approval of the relevant protocol and related documentation;

(c) addressing any other matters regarding the Development or Manufacturing of Licensed Products other than TC Products referred to the JCC by the terms of this Agreement; and

(d) performing such other activities as the Parties agree in writing shall be the responsibility of the JCC.

ii.Section 6.1.7(c) (Tie-Breaking) is hereby deleted in its entirety and replaced with the following:

(i) the Chief Executive Officer of DSE or his or her designee shall have the deciding vote if the dispute relates to (A) [***], or (B) [***], and

(ii) the Chief Executive Officer of Esperion shall have the deciding vote if the dispute relates to:

(A) [***],

(B) [***], and

(iii) All matters within the JCC’s responsibilities that cannot be resolved under Section 6.1.7(b) (Escalation) that are not subject to a Party’s deciding vote pursuant to clause (i) or clause (ii) of this Section 6.1.7(c) (Tie-Breaking), shall be subject to the mutual agreement of both Parties and shall not be subject to arbitration or any other form of external dispute resolution.

For the avoidance of doubt: (a) all matters relating to the Development, Manufacturing and Commercialization of the Licensed Products other than TC Products or of the TC Products, in each case, in the Esperion Territory shall be decided by Esperion and shall not be subject to decision-making by the JCC, and (b) all matters relating to the Development, Manufacturing and Commercialization of the TC Products in the DSE Territory shall be decided by DSE and shall not be subject to decision-making by the JCC.

g.Licenses; Retained Rights.

i.Section 8.1.1 (Exclusive License Grant) is hereby deleted in its entirety and replaced with the following:

8.1.1. Exclusive License Grants. Subject to the terms and conditions of this Agreement, including Section 8.3 (Retained Rights), Esperion hereby grants to DSE a non-transferable (except as provided in Section 14.2 (Assignment)), sublicensable (subject to Section 8.1.2 (DSE Sublicense Rights)), exclusive (even as to Esperion) license under the Esperion Technology, Esperion Patent Rights and Esperion Trademarks to: (a) (i) Commercialize the Licensed Products other than TC Products in the Field in the DSE Territory and (ii) Manufacture and have Manufactured the Licensed Products other than TC Products anywhere in the world (excluding Japan) solely for the purpose of Commercializing such Licensed Products other than TC Products in the Field in the DSE Territory, and (b) (i) Develop, Manufacture and Commercialize the TC Products in the Field in the DSE Territory, (ii) Develop and have Developed the TC Products anywhere in the world (excluding Japan) solely for the purpose of obtaining Regulatory Approval of and Commercializing the TC Products in the Field in the DSE Territory, and (iii) Manufacture and have Manufactured the TC Products anywhere in the world (excluding Japan) solely for the purposes of Developing the TC Products for Commercialization in the Field in the DSE Territory and Commercializing the TC Products in the Field in the DSE Territory. The licenses granted hereunder shall be royalty-bearing for the Royalty Term applicable to each Licensed Product in each country in the DSE Territory, and, after the expiration of the Royalty Term applicable to such Licensed Product in such country, shall convert to a fully-paid perpetual license for such Licensed Product in such country.

ii.Section 8.3 (Retained Rights) is hereby deleted in its entirety and replaced with the following:

8.3. Retained Rights. For the avoidance of doubt, notwithstanding the provisions of Section 8.1 (Licensed Grants to DSE) or any other provision of this Agreement, Esperion shall retain rights under the Esperion Patent Rights, Esperion Know-How, Regulatory Documentation, Esperion Trademarks and Esperion house marks to: (a) perform its responsibilities under this Agreement, the DSE Supply Agreement and the Technology Transfer Agreement, (b) without limiting the Parties’ obligations under Section 6 of the Technology Transfer Agreement, Manufacture, have Manufactured, supply and have supplied the Licensed Products other than TC Products in the DSE Territory and DS Territory solely for the purpose of Developing and Commercializing such Licensed Products other than TC Products in the Esperion Territory, (c) Develop and have Developed the TC Products in the DSE Territory and DS Territory solely for the purpose of obtaining Regulatory Approval of and Commercializing the TC Products in the Esperion Territory, and (d) Manufacture, have Manufactured, supply and have supplied the TC Products in the DSE Territory and DS Territory solely for the purpose of Developing and Commercializing the TC Products in the Esperion Territory.

h.TC Products Financial Terms.

i.Section 9.3 (Commercial Milestones) is hereby deleted in its entirety and replaced with the following:

9.3. Commercial Milestones. DSE shall provide Esperion with written notice of the achievement by DSE or any of its Related Parties of any commercial milestone event set

forth below in this Section 9.3 (Commercial Milestones) within [***] after the end of the Fiscal Quarter in which such event has occurred. Esperion shall invoice DSE within [***] of receipt of such written notice by DSE, and DSE shall remit the associated milestone payment within [***] of the receipt of such invoice. The Parties acknowledge that more than one commercial milestone payment may become due and payable in any given Fiscal Year. Each commercial milestone payment set forth below shall be payable only once, regardless of the number of times a commercial milestone event is achieved.


Commercial Milestone Event			Commercial Milestone Payment
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DSE Territory equal to or exceeding Euro [***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DSE Territory equal to or exceeding Euro [***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DSE Territory equal to or exceeding Euro [***]			$[***]

ii.Sections 9.4.1 (Royalty Rates) and 9.4.2 (Royalty Term) are hereby deleted in its entirety and replaced with the following:

9.4.1. Royalty Rates. Subject to the terms and conditions of this Agreement, DSE shall pay to Esperion royalties on Net Sales of Licensed Products sold in the DSE Territory for a given Fiscal Year by or on behalf of DSE and its Related Parties during the Royalty Term for each Licensed Product at the applicable royalty rate set forth below:


Net Sales of Licensed Products for a given Fiscal Year in the DSE Territory			Royalty (as a percentage of Net Sales)
Portion less than or equal to Euro [***]			15%
Portion greater than Euro [*] and less than or equal to [*]			20%
Portion greater than Euro [***]			25%

9.4.2. Royalty Term. The period during which the royalties set forth in Section 9.4.1 (Royalty Rates) shall be payable on a Licensed Product-by-Licensed Product and country-by-country basis shall commence upon the First Commercial Sale of such Licensed Product in such country and continue until the latest of (a) the expiration of the last Valid Claim of the Esperion Patent Rights that covers such Licensed Product in such country, (b) the expiration of Regulatory Exclusivity for such Licensed Product in such country, and (c) the [***] anniversary of the First Commercial Sale of such Licensed Product in such country (the “Royalty Term”). For the avoidance of doubt, from and after the expiration of the Royalty Term for a Licensed Product in a country of the DSE Territory, Net Sales of such Licensed Product in such country shall be excluded for purposes of calculating the Net Sales thresholds set forth in Section 9.3 (Commercial Milestones).

i.Indemnification.

i.Clause (b) of Section 11.1 (General Indemnification by DSE) is hereby deleted in its entirety and replaced with the following: “(b) the Commercialization of

Licensed Products other than TC Products by or on behalf of DSE or any of its Related Parties,”.

ii.The following are added as new clauses (c) and (d) to Section 11.1 (General Indemnification by DSE): “(c) the Manufacture of Licensed Products other than TC Products by or on behalf of DSE or any of its Related Parties, (d) the Development, Manufacture and Commercialization of TC Products by or on behalf of DSE or any of its Related Parties,”.

iii.Clause (c) of Section 11.1 (General Indemnification by DSE) is hereby renumbered as clause (e).

iv.Clauses (b) and (c) of Section 11.2 (General Indemnification by Esperion) are hereby deleted in their entirety and replaced with the following: “(b) the Development of Licensed Products other than TC Products by Esperion or any of its Affiliates, (c) the Commercialization of Licensed Products other than TC Products by or on behalf of Esperion or any of its Affiliates (excluding such conduct by DSE, its Affiliates and its Sublicensee hereunder),”.

v.The following is added as new clause (d) to Section 11.2 (General Indemnification by Esperion): “(d) the Development, Manufacture and Commercialization of TC Products by or on behalf of Esperion or any of its Affiliates (excluding such conduct by DSE, its Affiliates and its Sublicensee hereunder),”.

vi.Clause (d) of Section 11.2 (General Indemnification by Esperion) is hereby renumbered as clause (e).

j.TC Products Data Ownership.

i.Section 12.1.2 (Ownership) is hereby deleted in its entirety and replaced with the following:

12.1.2. Ownership.

(a) DSE shall own the entire right, title and interest in and to all Know-How, scientific, technical, test, or other data or information pertaining to any TC Product that is generated by or on behalf of DSE or any of its Affiliates or Sublicensees during the Term, or, as may be applicable, is generated by or on behalf of Esperion or any of its Affiliates or (sub)contractors in performing the Esperion Assistance, including research data, preclinical data, clinical pharmacology data, chemistry-manufacture-controls (CMC) data (including analytical and quality control data and stability data), pre-clinical data, clinical data, clinical study reports, any safety database pertaining to any TC Product and all data used in connection with submissions of any Regulatory Approval with respect to any TC Product (collectively, “TC Products Data”). Esperion shall assign and hereby does assign (and shall cause its Affiliates and (sub)contractors to assign) to DSE all rights worldwide in and to any TC Products Data generated in the performance of any Esperion Assistance, as applicable, to effectuate the ownership thereof as set forth in this Section 12.1.2(a).

(b) DSE shall own the entire right, title and interest in and to all inventions it Invents during the Term, and, except as set forth in Section 12.1.2(a), Esperion shall own the entire right, title and interest in and to all inventions it Invents during the Term. The Parties shall jointly own the entire right, title and interest in and to all inventions they Invent jointly during the Term.

k.Effect of Termination.

i.Section 13.4.2 (Disclosure of Certain Commercialization Related Information) is hereby deleted in its entirety and replaced with the following:

13.4.2. Disclosure of Certain Commercialization Related Information. DSE will disclose and will transfer (or cause to be transferred) to Esperion copies of all material information pertaining to pricing and market access strategy and health economic study information, in each case, for each Licensed Product in the DSE Territory in the possession of DSE or any of its Related Parties as of the date of such reversion that is necessary or useful for the continued Commercialization of such Licensed Product in the DSE Territory;

ii.Section 13.4.6(a) (Transition Activities) is hereby deleted in its entirety and replaced with the following:

(a) The Parties wish to provide a mechanism to ensure that, in the event patients are being treated with any Licensed Product or are being given any Licensed Product in any ongoing Clinical Studies as of the date of such termination, such patients will continue to have access to such Licensed Product while the development, regulatory and commercial responsibilities, as applicable, for such Licensed Product are transitioned from DSE to Esperion. As such, Esperion may request DSE to perform transition activities that are necessary or useful to (1) where such Licensed Product is a TC Product that is the subject of ongoing Clinical Studies, transfer to Esperion or its designee all such ongoing Clinical Studies or, if so instructed by Esperion, wind-down the conduct of any such ongoing Clinical Studies (subject to ethical obligations and requirements under applicable Laws), (2) transition DSE’s and its Related Parties’ Commercialization activities (if any) to Esperion of such Licensed Product to minimize disruption to sales, (3) provide patients with continued access to such Licensed Product (if applicable), (4) enable Esperion (or Esperion’s designee) to assume and execute all responsibilities under all Regulatory Approvals for such Licensed Product and, where such Licensed Product is a TC Product, under all ongoing Clinical Studies (other than those designated by Esperion to be wound down), and (5) ensure long-term continuity of supply for such Licensed Product (collectively, the “Transition Activities”), but no longer than [***] following the effective date of termination.

iii.Section 13.4.6(c) (Transition Activities) is hereby deleted in its entirety and replaced with the following:

(c) [***], Esperion will reimburse DSE’s out-of-pocket costs to perform the Transition Activities. Esperion will own all revenue derived from any and all Licensed Products after the termination date and DSE will remit all such revenues to Esperion no later than the [***] day following the end of the month in which such revenue was received.

3.No Other Changes. All other original terms and conditions of the LCA, except as specifically amended herein, will remain in full force and effect. To the extent there is a conflict between this 3rd Amendment and the LCA, the provisions of this 3rd Amendment will control.

4.Effectiveness. This 3rd Amendment will be effective as of the 3rd Amendment Effective Date.

5.Assignment. This 3rd Amendment may not be assigned, nor may any right or obligation hereunder be assigned, by either Party without the prior written consent of the other Party, except that either Party may assign this 3rd Amendment, and its rights and obligations hereunder, without the other Party’s prior written consent together with an assignment of the LCA in accordance with Section 14.2 (Assignment) of the LCA.

6.Miscellaneous. The provisions of Sections 14.3 (Governing Law), 14.4 (Jurisdiction), 14.5 (Entire Agreement; Amendment); 14.6 (Severability), 14.7 (Headings), 14.8 (Waiver of Rule of Construction), 14.9 (Interpretation) and 14.17 (Counterparts) of the LCA are hereby incorporated into this 3rd Amendment by reference and shall apply to this 3rd Amendment, mutatis mutandis.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have caused this 3rd Amendment to be duly executed by their respective duly authorized officers as of the 3rd Amendment Effective Date.


Esperion Therapeutics, Inc.			Daiichi Sankyo Europe GmbH


By: /s/ Authorized Signatory			By: /s/ Authorized Signatory
Name: [***]			Name: [***]
Title: [***]			Title: [***]



			By: /s/ Authorized Signatory
			Name: [***]
			Title: [***]

Exhibit 10.3

CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [***] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

1st AMENDMENT

TO THE

LICENSE AND COLLABORATION AGREEMENT

by and between

DAIICHI SANKYO COMPANY, LIMITED

and

ESPERION THERAPEUTICS, INC.

January 2, 2024

THIS 1st AMENDMENT to the LICENSE AND COLLABORATION AGREEMENT (this “Amendment”), entered into as of January 2, 2024 (the “Amendment Effective Date”), is entered into by and between Daiichi Sankyo Company, Limited, a company organized and existing under the laws of Japan (“DS”) and Esperion Therapeutics, Inc., a corporation organized and existing under the laws of the state of Delaware (“Esperion”). DS and Esperion are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

WHEREAS, Esperion and DS are parties to that certain License and Collaboration Agreement, dated and effective as of April 26, 2021 (the “LCA”), and that certain Manufacturing and Supply Agreement by and between DS and Esperion, dated and effective as of July 27, 2021 (the “DS Supply Agreement”);

WHEREAS, disputes and litigation arose between an Affiliate of DS, Daiichi Sankyo Europe GmbH (“DSE”), and Esperion as to their respective rights and obligations under certain agreements, which disputes and litigation were fully and finally resolved pursuant to that certain Confidential Settlement Agreement And Release, dated as of January 2, 2024 (“the Settlement Agreement”); and

WHEREAS, Section 2 of the Settlement Agreement requires the Parties to amend the LCA as provided herein.

1.Defined Terms. Except as defined herein, all capitalized terms used in this Amendment have the meaning set forth in the LCA.

2.LCA Amendments. The LCA is hereby amended as follows:

a.Definitions.

i.Section 1.31 (DS Domain Names), Section 1.34 (DS Know-How), Section 1.45 (Esperion Domain Names), and Section 1.81 (Licensed Products) are hereby deleted in their entirety and replaced with:

“DS Domain Names” means any unbranded domain name(s) (but not including domain name(s) containing INNs) mutually agreed to by the Parties in writing to be used or to be protected in connection with the Commercialization of the Licensed Products in the DS Territory.

“DS Know-How” means Know-How Controlled by DS or any of its Affiliates during the Term, that arises out of the performance of obligations or exercise of rights hereunder, and that is necessary or useful to the Development, Manufacture or Commercialization of the Licensed Products in the Field, including the TC Products Data but excluding Joint Know-How.

“Esperion Domain Names” means any unbranded domain name(s) (but not including domain name(s) containing INNs) mutually agreed to by the Parties in writing to be used or to be protected in connection with the Commercialization of the Licensed Products in the DS Territory.

“Licensed Products” means (a) any pharmaceutical agent which includes Bempedoic Acid in any formulation, presentation and strength, including but not limited to the Licensed Product described in Schedule 1.81, and (b) any pharmaceutical agent that is a combination of Bempedoic Acid, Ezetimibe and a Statin, as its sole active ingredients, in any formulation, presentation and strength (a “Triple Combination Product” or “TC Product”).

ii.The following terms are added to Section 1 (Definitions):

“Business Day” means any day other than (a) Saturday or Sunday, (b) any other day on which national banks in Ann Arbor, Michigan are generally permitted or required to be closed, (c) any other day on which national banks in Japan are generally permitted or required to be closed, or (d) the thirteen (13) consecutive days beginning on December 24th and continuing through January 4th to the extent not already covered in (a), (b) or (c).

“DS Supply Agreement” has the meaning set forth in Section 5.1 (Licensed Products Other than TC Products).

“Esperion Assistance” has the meaning set forth in Section 2.1.1(b) (TC Products Development).

“Ezetimibe” means the azetidinone derivative having the chemical formula (1-(4-fluorophenyl)-(3R)-[3-(4-fluorophenyl)-(3S)-hydroxypropyl]-(4S)-(4-hydroxyphenyl)-2-azetidinone).

“Hourly Rate” means, for the first [***] hours of work performed by Esperion employees, [***] U.S. dollars ($[***]) per hour, and after such first [***] hours of work, until such time as the Parties agree otherwise, [***] U.S. dollars ($[***]) per hour, subject to annual increases beginning on [***] to reflect percentage increase in the Consumer Price Index for the US City Average, calculated by the Bureau of Labor Statistics during the immediately preceding Calendar Year and similarly calculated year to year increases each subsequent Calendar Year.

“Launch” means, for a Licensed Product in the DS Territory, the anticipated date of the First Commercial Sale for such Licensed Product in the DS Territory as determined by DS or any of its Related Parties.

“Statin” means an HMG-CoA reductase inhibitor for the reduction of low-density lipoprotein (LDL) cholesterol.

“TC Products Data” has the meaning set forth in Section 12.1.2 (a) (Ownership).

“TC Products Development” has the meaning set forth in Section 2.1.1(a) (TC Products Development).

“Technology Transfer Agreement” has the meaning set forth in Section 5.1 (Licensed Products other than TC Products).

“Triple Combination Product” or “TC Product” has the meaning set forth in Section 1.81(b) (Licensed Products).

b.Development

i.The following is hereby added as a new Section 2.1.1 and current Sections 2.1.1 (Overview), 2.1.2 (Development in South Korea and Taiwan), 2.1.3 (Development Plans), 2.1.4 (Performance), 2.1.5 (Development Costs), and 2.1.6 (Records, Reports and Information Sharing) are renumbered as necessary:

2.1.1 TC Products Development.

(a) Subject to Section 2.1.1(b), DS shall be and remain solely responsible for and have sole decision-making right over, [***], all Development activities for any TC Product, including any Post- Approval Studies relating to such TC Product, in support of obtaining Regulatory Approval for and Commercializing such TC Product in the DS Territory (the “TC Products Development”). All TC Products Development shall be in DS’s sole discretion, and DS shall have no obligation to perform any TC Products Development.

(b) DS will have the right to request reasonable assistance from Esperion in connection with the performance of any activities constituting TC Products Development. Within [***] Business Days of any such request by DS, the Parties shall discuss in good faith and agree in writing the assistance to be provided by Esperion (including timelines and corresponding budget) (the “Esperion Assistance”). Promptly following the end of each [***], Esperion will issue to DS an invoice for the amount of Hourly Costs and Out-of-Pocket Costs incurred by or on behalf of Esperion in the performance of the Esperion Assistance in accordance with the budget agreed upon by the Parties. DS will pay to Esperion the undisputed amount of each such invoices within [***] days of DS’s receipt of the applicable invoice.

ii.As used in each of Section 2.1.2 (Overview) and Section 2.1.3 (Development in South Korea and Taiwan) (each renumbered after giving effect to the amendment

set forth in Section 2.b.i herein), the term “Licensed Product” excludes any TC Product.

iii.The last two (2) sentences of Section 2.1.4 (Development Plans) (renumbered after giving effect to the amendment set forth in Section 2.b.i herein) are hereby deleted in its entirety and replaced with the following:

“The initial Development Plan (other than for South Korea and Taiwan) setting forth the Development activities to be undertaken by DS for Licensed Products that are not TC Products to obtain Regulatory Approval therefor in the Field in the DS Territory shall be provided by DS to Esperion within [***] months after the Effective Date. The initial Development Plan for South Korea and Taiwan setting forth the Pre-Approval Clinical Studies for Licensed Products that are not TC Products to be undertaken by Esperion shall be set forth in the Agreed Development Plan in accordance with Section 2.1.2 (Development in South Korea and Taiwan).”

iv.Section 2.1.6 (Development Costs) (renumbered after giving effect to the amendment set forth in Section 2.b.i herein) is hereby deleted in its entirety and replaced with the following:

2.1.6 Development Costs. DS shall be responsible for all costs and expenses incurred in connection with the Development of the Licensed Products in the Field in the DS Territory, except for [***].

c.Regulatory Matters.

i.As used in each of Section 3.1 (Responsibility for Regulatory Matters), Section 3.2 (Communications with Regulatory Authorities), Section 3.3 (Meetings with Regulatory Authorities), Section 3.5 (Submissions), and, after giving effect to the amendment set forth in Section 2.c.iv herein, Section 3.7 (Regulatory Documentation), Section 3.8 (Technology Transfer), and Section 3.9 (Supply of Stability Study Samples), and each of such Sections’ respective subsections, the term “Licensed Product” excludes any TC Product.

ii.The last sentence of Section 3.4 (Pricing and Reimbursement Approvals) is hereby deleted in its entirety and replaced with the following:

“Except with respect to a TC Product, Esperion shall reasonably cooperate with DS in connection therewith, including executing such documents as well as providing access to all necessary data in Esperion’s Control and not previously made available to DS, such as patient-level data, all Regulatory Documentation, publication plan and manuscripts under preparation, support with the necessary data-analyses (bio-statistical analyses), as may be necessary to confirm DS’s rights to prepare, submit, and obtain such Pricing Approvals for the Licensed Product in the DS Territory.”

iii.The last sentence of Section 3.7 (Regulatory Documentation), after giving effect to the amendment set forth in Section 2.c.iv herein), is hereby deleted in its entirety and replaced with the following:

“Notwithstanding the foregoing, within [***] days after the Effective Date, with respect to the eCTD for the Licensed Products other than the TC Products, Esperion shall provide to DS a

copy of such eCTD (but for clarity not including portions included within the DMF) existing as of the Effective Date and thereafter Esperion shall provide a copy of the updated eCTD for the Licensed Products other than the TC Products following submission of the global cardiovascular outcomes trial (CVOT) data to the European Medicines Agency.”

iv.The following is hereby added as a new Section 3.6 and current Sections 3.6 (Regulatory Documentation), 3.7 (Technology Transfer), 3.8 (Supply of Stability Study Samples), 3.9 (Right of Reference), 3.10 (Pharmacovigilance), and 3.11 (Inspection) are renumbered as necessary.

3.6 TC Products Regulatory Matters.

(a) Responsibility for Regulatory Matters and Ownership of Regulatory Filings for TC Products. DS will be solely responsible, [***], for all regulatory matters involving the TC Products in each jurisdiction in the DS Territory (as determined on a regulatory jurisdiction by-regulatory jurisdiction basis), including [***]. DS will own all Regulatory Approvals and related Regulatory Documentation submitted to any Regulatory Authority for any TC Product in the DS Territory.

(b) Communications with Regulatory Authorities involving TC Products. DS will own and respond to all communications with each Regulatory Authority in the DS Territory involving the TC Products. Within [***] Business Days after receipt of any Material Communication from such Regulatory Authority involving any TC Product (including any in-person meeting such Regulatory Authority), DS will provide Esperion with a brief written description, in English, of the principal issues raised in such Material Communication with such Regulatory Authority. Upon Esperion’s reasonable request after receiving a notice from DS in accordance with the immediately preceding sentence, DS will translate such Material Communication and provide to Esperion complete copies of such correspondence or meeting minutes, as applicable, of any such translated Material Communication within a reasonable period of time.

(c) Submissions to Regulatory Authorities involving TC Products. As determined on a regulatory jurisdiction-byregulatory jurisdiction basis in the DS Territory, with respect to each TC Product, DS will own and control all submissions to Regulatory Authorities in the DS Territory involving the TC Products. With respect to each TC Product, DS will notify Esperion about each of the following events in the DS Territory: [***]. Without limiting the foregoing, DS will allow Esperion a reasonable opportunity to review and comment on all filings and other submissions to Regulatory Authorities or other Governmental Authorities in the DS Territory for a TC Product and for that purpose DS shall provide English versions of such filings and other submissions to Esperion in advance of submitting any such filings and other submissions (such as, but not limited to, [***]). DS will consider all comments timely provided by Esperion in connection therewith and accept such comments if reasonable; [***].

(d) Esperion Regulatory Assistance. DS will have the right to request reasonable support and assistance from Esperion in connection with developing answers to questions and advice sought by DS in connection with regulatory matters involving any TC Product in the DS Territory, including with respect to communications with and submissions to Regulatory Authorities. Following any such request by DS, Esperion agrees to use [***] to provide such reasonable regulatory support and assistance to DS. Promptly following the end of each [***] during which Esperion or any of its Affiliate have provided any such support or assistance to DS, Esperion will issue to DS an invoice for the amount of Hourly Costs and Out-of-Pocket Costs incurred by or on behalf of Esperion in the

performance of such activities. DS will pay to Esperion the undisputed amount of each such invoices within [***] days of DS’s receipt of the applicable invoice.

d.Commercialization.

i.Section 4.1.3 (DS Commercial Diligence) is hereby deleted in its entirety and replaced with the following:

4.1.3. DS Commercial Diligence. DS will use [***] to Commercialize each Licensed Product that is not a TC Product in the Field in the DS Territory. DS shall conduct all Commercialization activities for each Licensed Product that is not a TC Product in accordance with the applicable DS Territory Commercialization Plan and in compliance with applicable Laws and this Agreement.

ii.The first two (2) sentences of Section 4.2.1 (Initial Commercialization Plan) are hereby deleted in their entirety and replaced with the following:

“DS shall deliver to the JCC an initial written plan setting forth a summary of the anticipated activities to be undertaken by or on behalf of DS in connection with the Commercialization of such Licensed Product in the DS Territory (each, a “DS Territory Commercialization Plan”), excluding any information relating to pricing or reimbursement submissions or pricing dossiers (including Pricing and Reimbursement Approvals): (a) with respect to a Licensed Product other than a TC Product, no later than [***] days prior to Launch of such Licensed Product, or (b) with respect to a TC Product, promptly following DS’s finalization of the DS Territory Commercialization Plan for such TC Product prior to Launch of such TC Product. Each DS Territory Commercialization Plan shall provide an outline of the Commercialization activities for each Licensed Product in the DS Territory, including [***].”

e.Manufacture and Supply.

i.Sections 5.1 (Licensed Products), 5.2 (Back-Up Manufacturing Right), 5.3 (Delivery Terms) and 5.4 (Quality Agreement) (and all subsections thereto) are hereby deleted in their entirety and replaced with the following:

5.1 Licensed Products other than TC Products. Esperion and DS are parties to that certain Manufacturing and Supply Agreement, dated and effective as of July 27, 2021 (the “DS Supply Agreement”) and (together with Daiichi Sankyo Europe GmbH) that certain Technology Transfer Agreement, dated and effective as of the effective date of the first amendment to this Agreement (the “Technology Transfer Agreement”), which, as between the Parties hereto, govern their respective rights and obligations with respect to the manufacture and supply of bulk drug product form of the Licensed Products (other than TC Products) for Commercialization in the DS Territory.

5.2 TC Products. DS will (a) have the exclusive right and responsibility to Manufacture and supply, [***], either itself or through a Third Party manufacturer, the TC Products for Development and Commercialization thereof by or on behalf of DS in the DS Territory under this Agreement, and (b) be responsible, [***], for supplying all quantities of the TC Products for use in the performance of activities as part of any Esperion Assistance, as may be applicable. In the event DS desires for Esperion to Manufacture or supply bulk drug product form of any TC Products, the Parties shall use [***] to negotiate a manufacturing and supply arrangement therefor.

f.JCC Responsibility.

i.As used in Section 6.1.1 (Overview), the term “Licensed Product” excludes any TC Product.

ii.Section 6.1.6 (JCC Responsibilities) is hereby deleted in its entirety and replaced with the following:

6.1.6. JCC Responsibilities. The JCC shall be limited to the following responsibilities in connection with this Agreement:

(a) discussing, reviewing and approving the Development Plans and amendments or modifications to the Development Plans for Licensed Products other than TC Products;

(b) discussing, reviewing and approving the Development of new formulations of Licensed Products other than TC Products;

(c) discussing and reviewing the implementation of the Development Plans for Licensed Products other than TC Products, and reviewing the status and results of such Development Plans;

(d) discussing, reviewing and approving Clinical Studies, including post-marketing studies proposed to be sponsored or supported (through supply of Licensed Products other than TC Products) by DS or Esperion (in respect of the Development Pre-Approval Clinical Studies in South Korea and Taiwan), as detailed in Section 2.1.3 (Development in South Korea and Taiwan)), of Licensed Products other than TC Products in the DS Territory, including the approval of the relevant study design or summary of the relevant protocol and related documentation;

(e) discussing and reviewing the status of Licensed Products other than TC Products, including material Development matters in the Esperion Territory and the DS Territory;

(f) discussing and reviewing the Global Branding Strategy;

(g) discussing and reviewing the DS Territory Commercialization Plans and amendment or modifications to the DS Territory Commercialization Plans;

(h) reviewing representative samples of DS Territory Promotional Materials developed for use in the DS Territory as provided in Section 4.3.2 (DS Advertising & Promotional Materials);

(i) discussing, reviewing and approving Trademarks for the DS Territory pursuant to Section 4.3.4 (Product Trademarks);

(j) reviewing a publication strategy pursuant to which the Parties may publish certain key results achieved in connection with this Agreement as provided in Section 7.2.1 (Publication);

(k) overseeing the JCC's subcommittees and ensuring effective participation in each such committee's operations by any of its members;

(l) addressing any other matters regarding the Development or Manufacturing of Licensed Products other than TC Products referred to the JCC by the terms of this Agreement; and

(m) performing such other activities as the Parties agree in writing shall be the responsibility of the JCC.

iii.Section 6.1.7(c) (Tie-Breaking) is hereby deleted in its entirety and replaced with the following:

(i) the Chief Executive Officer of DS or his or her designee shall have the deciding vote if the dispute relates to (A) [***], or (B) [***], and

(ii) the Chief Executive Officer of Esperion shall have the deciding vote if the dispute relates to:

(A) [***],

(B) [***], and

For the avoidance of doubt: (a) all matters relating to the Development, Manufacturing and Commercialization of the Licensed Products other than TC Products or of the TC Products, in each case, in the Esperion Territory shall be decided by Esperion and shall not be subject to decision-making by the JCC, and (b) all matters relating to the Development, Manufacturing and Commercialization of the TC Products in the DS Territory shall be decided by DS and shall not be subject to decision-making by the JCC.

g.Licenses; Retained Rights.

i.Section 8.1.1 (Exclusive License Grant) is hereby deleted in its entirety and replaced with the following:

8.1.1. Exclusive License Grants. Subject to the terms and conditions of this Agreement, including Section 8.3 (Retained Rights), Esperion hereby grants to DS a non-transferable (except as provided in Section 14.1 (Assignment)), sublicensable (subject to Section 8.1.2 (DS Sublicense

Rights)), exclusive (even as to Esperion and its Affiliates, except as provided in Section 2.1.2 (Development in South Korea and Taiwan)) license under the Esperion Technology, Esperion’s interest in the Joint Technology, and Esperion Trademarks to: (a) (i) Develop and have Developed the Licensed Products other than TC Products in the Field in the DS Territory (but solely to the extent necessary for DS to conduct the Development activities set forth in the applicable Development Plan in accordance with Section 2.1.4 (Development Plans)), (ii) Commercialize the Licensed Products other than TC Products in the Field in the DS Territory and (iii) Manufacture and have Manufactured the Licensed Products other than TC Products anywhere in the world (excluding Japan) solely for the purpose of Commercializing such Licensed Products other than TC Products in the Field in the DS Territory, and (b) (i) Develop, Manufacture and Commercialize the TC Products in the Field in the DS Territory, (ii) Develop and have Developed the TC Products anywhere in the world (excluding Japan) solely for the purpose of obtaining Regulatory Approval of and Commercializing the TC Products in the Field in the DS Territory, and (iii) Manufacture and have Manufactured the TC Products anywhere in the world (excluding Japan) solely for the purposes of Developing the TC Products for Commercialization in the Field in the DS Territory and Commercializing the TC Products in the Field in the DS Territory. The licenses granted hereunder shall be royalty-bearing for the Royalty Term applicable to each Licensed Product in each country in the DS Territory, and, after the expiration of the Royalty Term applicable to such Licensed Product in such country, shall convert to a fully-paid perpetual license for such Licensed Product in such country.

ii.Section 8.4 (Retained Rights) is hereby deleted in its entirety and replaced with the following:

8.3. Retained Rights. For the avoidance of doubt, notwithstanding the provisions of Section 8.1 (Licensed Grants to DS) or any other provision of this Agreement, Esperion shall retain rights under the Esperion Patent Rights, Esperion Know-How, Joint Technology, Regulatory Documentation, Esperion Trademarks and Esperion house marks to: (a) perform its responsibilities under this Agreement, the DS Supply Agreement and the Technology Transfer Agreement, (b) without limiting the Parties’ obligations under Section 6 of the Technology Transfer Agreement, Manufacture, have Manufactured, supply and have supplied the Licensed Products other than TC Products in the DS Territory and DSE Territory solely for the purpose of Developing and Commercializing such Licensed Products other than TC Products in the Esperion Territory, (c) Develop and have Developed the TC Products in the DS Territory and DSE Territory solely for the purpose of obtaining Regulatory Approval of and Commercializing the TC Products in the Esperion Territory, and (d) Manufacture, have Manufactured, supply and have supplied the TC Products in the DS Territory and DSE Territory solely for the purpose of Developing and Commercializing the TC Products in the Esperion Territory.

h.TC Products Financial Terms.

i.Section 9.2 (Commercial Milestones) is hereby deleted in its entirety and replaced with the following:

9.2 Commercial Milestones. DS shall provide Esperion with written notice of the achievement by DS or any of its Related Parties of any commercial milestone event set forth below in this Section 9.2 (Commercial Milestones) within [***] days after the end of the Fiscal Quarter in which such event has occurred. Esperion shall invoice DS within [***] days of receipt of such written notice by DS, and DS shall remit the associated milestone payment within [***] days of the receipt of such invoice. The Parties acknowledge that more than one commercial milestone payment may become due and payable in any given Fiscal Year. Each commercial milestone payment set forth below shall be payable only once, regardless of the number of times a commercial milestone event is achieved.


Commercial Milestone Event			Commercial Milestone Payment (USD)
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DS Territory equal to or exceeding $[***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DS Territory equal to or exceeding $[***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DS Territory equal to or exceeding $[***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DS Territory equal to or exceeding $[***]			$[***]
Upon the first achievement of Net Sales for a Fiscal Year of the Licensed Products (excluding Net Sales for any TC Products) in the DS Territory equal to or exceeding $[***]			$[***]

ii.Sections 9.3.1 (Royalty Rates) and 9.3.2 (Royalty Term) are hereby deleted in its entirety and replaced with the following:

9.3.1. Royalty Rates. Subject to the terms and conditions of this Agreement, DS shall pay to Esperion royalties on Net Sales of Licensed Products sold in the DS Territory for a given Fiscal Year by or on behalf of DS and its Related Parties during the Royalty Term for each Licensed Product at the applicable royalty rate set forth below:


Net Sales of Licensed Products for a given Fiscal Year in the DS Territory			Royalty (as a percentage of Net Sales)
Portion less than or equal to $[***]			5%
Portion greater than $[*] and less than or equal to $[*]			10%
Portion greater than $[*] and less than or equal to $[*]			15%
Portion greater than $[***]			20%

9.3.2. Royalty Term. The period during which the royalties set forth in Section 9.3.1 (Royalty Rates) shall be payable on a Licensed Product-by-Licensed Product and country-by-country basis shall commence upon the First Commercial Sale of such Licensed Product in such country and continue until the latest of (a) the expiration of the last Valid Claim of the Esperion Patent Rights that covers such Licensed Product in such country, (b) the expiration of Regulatory Exclusivity for such Licensed Product in such country, and (c) the [***] anniversary of the First Commercial Sale of such Licensed Product in such country (the “Royalty Term”). For the avoidance of doubt, from and after the expiration of the Royalty Term for a Licensed Product in a country of the DS Territory, [***].

i.Indemnification.

i.Clause (b) of Section 11.1 (General Indemnification by DS) is hereby deleted in its entirety and replaced with the following: “(b) the Development or

Commercialization of Licensed Products other than TC Products by or on behalf of DS or any of its Related Parties,”.

ii.The following are added as new clauses (c) and (d) to Section 11.1 (General Indemnification by DS): “(c) the Manufacture of Licensed Products other than TC Products by or on behalf of DS or any of its Related Parties, (d) the Development, Manufacture and Commercialization of TC Products by or on behalf of DS or any of its Related Parties,”.

iii.Clause (c) of Section 11.1 (General Indemnification by DS) is hereby renumbered as clause (e).

iv.Clause (b) of Section 11.2 (General Indemnification by Esperion) is hereby deleted in its entirety and replaced with the following: “(b) the Development or Commercialization of Licensed Products other than TC Products by or on behalf of Esperion or any of its Affiliates (excluding such conduct by DS, its Affiliates and its Sublicensee hereunder),”.

v.The following is added as new clause (c) to Section 11.2 (General Indemnification by Esperion): “(c) the Development, Manufacture and Commercialization of TC Products by or on behalf of Esperion or any of its Affiliates (excluding such conduct by DS, its Affiliates and its Sublicensee hereunder),”.

vi.Clause (c) of Section 11.2 (General Indemnification by Esperion) is hereby renumbered as clause (d).

j.TC Products Data Ownership.

i.Section 12.1.2 (Ownership) is hereby deleted in its entirety and replaced with the following:

12.1.2. Ownership.

(a) DS shall own the entire right, title and interest in and to all Know-How, scientific, technical, test, or other data or information pertaining to any TC Product that is generated by or on behalf of DS or any of its Affiliates or Sublicensees during the Term, or, as may be applicable, is generated by or on behalf of Esperion or any of its Affiliates or (sub)contractors in performing the Esperion Assistance, including research data, preclinical data, clinical pharmacology data, chemistry-manufacture-controls (CMC) data (including analytical and quality control data and stability data), pre-clinical data, clinical data, clinical study reports, any safety database pertaining to any TC Product and all data used in connection with submissions of any Regulatory Approval with respect to any TC Product (collectively, “TC Products Data”). Esperion shall assign and hereby does assign (and shall cause its Affiliates and (sub)contractors to assign) to DS all rights worldwide in and to any TC Products Data generated in the performance of any Esperion Assistance, as applicable, to effectuate the ownership thereof as set forth in this Section 12.1.2(a).

(b) DS shall own the entire right, title and interest in and to all inventions it Invents (i.e., solely by one or more employees of DS or its Affiliates (or a Third Party acting

on any of their behalf)) during the Term, and, except as set forth in Section 12.1.2(a), Esperion shall own the entire right, title and interest in and to all inventions it Invents (i.e., solely by one or more employees of Esperion or its Affiliates (or a Third Party acting on any of their behalf)) during the Term. The Parties shall jointly own the entire right, title and interest in and to all inventions they Invent jointly (i.e., by one or more employees of DS or its Affiliates (or a Third Party acting on any of their behalf) and one or more employees of Esperion or its Affiliates (or a Third Party acting on any of their behalf)) during the Term.

k.Effect of Termination.

i.Section 13.4.2 (Disclosure of Certain Commercialization Related Information) is hereby deleted in its entirety and replaced with the following:

13.4.2. Disclosure of Certain Commercialization Related Information. DS will disclose and will transfer (or cause to be transferred) to Esperion copies of all material information pertaining to pricing and market access strategy and health economic study information, in each case, for each Licensed Product in the DS Territory or Terminated Country (as applicable) in the possession of DS or any of its Related Parties as of the date of such reversion that is necessary or useful for the continued Commercialization of such Licensed Product in the DS Territory or Terminated Country (as applicable);

ii.Section 13.4.6(a) (Transition Activities) is hereby deleted in its entirety and replaced with the following:

(a) The Parties wish to provide a mechanism to ensure that, in the event patients are being treated with any Licensed Product or are being given any Licensed Product in any ongoing Clinical Studies as of the date of such termination, such patients will continue to have access to such Licensed Product while the development, regulatory and commercial responsibilities, as applicable, for such Licensed Product are transitioned from DS to Esperion. As such, Esperion may request DS to perform transition activities that are necessary or useful to (1) transfer to Esperion or its designee all ongoing Clinical Studies of such Licensed Product or, if so instructed by Esperion, wind-down the conduct of any such ongoing Clinical Studies (subject to ethical obligations and requirements under applicable Laws), (2) transition DS’s and its Related Parties’ Commercialization activities (if any) to Esperion of such Licensed Product to minimize disruption to sales, (3) provide patients with continued access to such Licensed Product (if applicable), (4) enable Esperion (or Esperion’s designee) to assume and execute all responsibilities under all Regulatory Approvals for such Licensed Product and under all ongoing Clinical Studies of such Licensed Product (other than those designated by Esperion to be wound down), and (5) ensure long-term continuity of supply for such Licensed Product (collectively, the “Transition Activities”), but no longer than [***] year following the effective date of termination.

iii.Section 13.4.6(c) (Transition Activities) is hereby deleted in its entirety and replaced with the following:

(c) Esperion will pay DS’s internal costs to perform the Transition Activities, calculated using the same methodology as DS used to calculate such expenses for the applicable Licensed Product in its most recently audited financial statements prior to the termination date. In addition, Esperion will reimburse DS’s Out-of-Pocket costs to perform the Transition Activities. Except as set forth in Section 13.4.5 (Stock of Finished Drug Products), Esperion will own all revenue derived from any and all Licensed Products after the termination date and DS will remit all such revenues to Esperion no later than the [***] day following the end of the month in which such revenue was received.

3.No Other Changes. All other original terms and conditions of the LCA, except as specifically amended herein, will remain in full force and effect. To the extent there is a conflict between this Amendment and the LCA, the provisions of this Amendment will control.

4.Effectiveness. This Amendment will be effective as of the Amendment Effective Date.

5.Assignment. This Amendment may not be assigned, nor may any right or obligation hereunder be assigned, by either Party without the prior written consent of the other Party, except that either Party may assign this Amendment, and its rights and obligations hereunder, without the other Party’s prior written consent together with an assignment of the LCA in accordance with Section 14.1 (Assignment) of the LCA.

6.Miscellaneous. The provisions of Sections 14.2 (Governing Law), 14.3 (Jurisdiction), 14.4 (Entire Agreement; Amendment); 14.5 (Severability), 14.6 (Headings), 14.7 (Waiver of Rule of Construction), 14.8 (Interpretation) and 14.16 (Counterparts) of the LCA are hereby incorporated into this Amendment by reference and shall apply to this Amendment, mutatis mutandis.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed by their respective duly authorized officers as of the Amendment Effective Date.


Esperion Therapeutics, Inc.			Daiichi Sankyo Company, Limited


By: /s/ Authorized Signatory			By: /s/ Authorized Signatory
Name: [***]			Name: [***]
Title: [***]			Title: [***]

Exhibit 31.1

Certification

I, Sheldon L. Koenig, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2024, of Esperion Therapeutics, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date:	May 7, 2024	/s/ Sheldon L. Koenig
		Sheldon L. Koenig
		President and Chief Executive Officer
		(Principal Executive Officer)

Exhibit 31.2

Certification

I, Benjamin Halladay, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2024, of Esperion Therapeutics, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date:	May 7, 2024	/s/ Benjamin Halladay
		Benjamin Halladay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Esperion Therapeutics, Inc. (the “Company”) for the period ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of Esperion Therapeutics, Inc., hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge as of the date hereof:

1)the Report which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Date:	May 7, 2024	/s/ Sheldon L. Koenig
		Sheldon L. Koenig
		President and Chief Executive Officer
		(Principal Executive Officer)

		/s/ Benjamin Halladay
		Benjamin Halladay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-35986
Entity Registrant Name	Esperion Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1870780
Entity Address, Address Line One	3891 Ranchero Drive, Suite 150
Entity Address, City or Town	Ann Arbor
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48108
City Area Code	734
Local Phone Number	887-3903
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ESPR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		189,460,293
Entity Central Index Key	0001434868
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 226,609	$ 82,248
Accounts receivable	54,612	48,494
Prepaid clinical development costs	0	193
Inventories, net	73,095	65,623
Other prepaid and current assets	11,290	4,507
Total current assets	365,606	201,065
Noncurrent assets:
Property and equipment, net	268	0
Right of use operating lease assets	7,130	4,675
Intangible assets	56	56
Total assets	373,060	205,796
Current liabilities:
Accounts payable	28,433	31,718
Accrued clinical development costs	3,046	3,441
Accrued variable consideration	34,518	34,284
Other accrued liabilities	23,140	24,998
Revenue interest liability	43,486	34,828
Deferred revenue from collaborations	29,350	25,402
Operating lease liabilities	2,539	1,553
Total current liabilities	164,512	156,224
Noncurrent liabilities:
Convertible notes, net of issuance costs	262,033	261,596
Revenue interest liability	236,397	239,950
Operating lease liabilities	4,416	3,020
Total liabilities	667,358	660,790
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding as of March 31, 2024 and December 31, 2023	0	0
Common stock, $0.001 par value; 480,000,000 shares authorized as of March 31, 2024 and 480,000,000 shares authorized as of December 31, 2023; 189,849,296 shares issued at March 31, 2024 and 120,204,513 shares issued at December 31, 2023	188	118
Additional paid-in capital	1,248,774	1,149,170
Treasury stock, at cost; 1,994,198 shares at March 31, 2024 and December 31, 2023	(54,998)	(54,998)
Accumulated other comprehensive income (loss)	0	0
Accumulated deficit	(1,488,262)	(1,549,284)
Total stockholders’ deficit	(294,298)	(454,994)
Total liabilities and stockholders’ deficit	$ 373,060	$ 205,796

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	480,000,000	480,000,000
Common stock, issued (in shares)	189,849,296	120,204,513
Treasury stock (in shares)	1,994,198	1,994,198

Condensed Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total Revenues	$ 137,735	$ 24,329
Operating expenses:
Cost of goods sold	10,075	11,652
Research and development	13,403	31,381
Selling, general and administrative	41,988	29,901
Total operating expenses	65,466	72,934
Income (loss) from operations	72,269	(48,605)
Interest expense	(14,024)	(14,387)
Other income, net	2,777	1,273
Net income (loss)	$ 61,022	$ (61,719)
Net income (loss) per common share - basic (in dollars per share)	$ 0.36	$ (0.79)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.34	$ (0.79)
Weighted-average shares outstanding - basic (in shares)	169,258,564	78,440,266
Weighted-average shares outstanding - diluted (in shares)	189,641,251	78,440,266
Other comprehensive income (loss):
Unrealized gain on investments	$ 0	$ 1
Comprehensive income (loss)	61,022	(61,718)
Product sales, net
Revenues:
Total Revenues	24,756	17,031
Collaboration revenue
Revenues:
Total Revenues	$ 112,979	$ 7,298

Condensed Statements of Stockholders' Deficit - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022		74,570,198
Beginning balance at Dec. 31, 2022	$ (323,778)	$ 75	$ 1,071,183	$ (1,340,036)	$ (2)	$ (54,998)
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock units and performance-based restricted stock units (in shares)		372,117
Vesting of ESPP Shares (in shares)		95,654
Stock-based compensation	502		502
Issuance of common stock from offering, net of issuance costs	2,903		2,903
Issuance of common stock, warrants, and pre-funded warrants, net of issuance costs (in shares)		12,205,000
Exercise of warrants	52,428	$ 12	52,416
Other comprehensive gain (loss)	1				1
Net income (loss)	(61,719)			(61,719)
Ending balance (in shares) at Mar. 31, 2023		87,242,969
Ending balance at Mar. 31, 2023	(329,663)	$ 87	1,127,004	(1,401,755)	(1)	(54,998)
Beginning balance (in shares) at Dec. 31, 2023		118,210,315
Beginning balance at Dec. 31, 2023	(454,994)	$ 118	1,149,170	(1,549,284)	0	(54,998)
Increase (Decrease) in Stockholders' Equity
Vesting of restricted stock units and performance-based restricted stock units (in shares)		439,783
Vesting of restricted stock units	1	$ 1
Issuance of common stock from offering, net of issuance costs	3,235		3,235
Issuance of common stock, warrants, and pre-funded warrants, net of issuance costs (in shares)		65,205,000
Exercise of warrants	90,672	$ 65	90,607
Exercise of warrants (in shares)		4,000,000
Exercise of warrants	5,766	$ 4	5,762
Net income (loss)	61,022			61,022
Ending balance (in shares) at Mar. 31, 2024		187,855,098
Ending balance at Mar. 31, 2024	$ (294,298)	$ 188	$ 1,248,774	$ (1,488,262)	$ 0	$ (54,998)

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income (loss)	$ 61,022	$ (61,719)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	0	81
Amortization of premiums and discounts on investments	0	(339)
Amortization of debt issuance costs	437	417
Non-cash interest expense related to the revenue interest liability	10,937	11,320
Stock-based compensation expense	3,235	2,903
Changes in assets and liabilities:
Accounts receivable	(6,118)	(2,686)
Prepaids and other assets	(6,590)	(1,608)
Deferred revenue	3,948	8,650
Inventories	(7,472)	(4,151)
Accounts payable	(3,450)	(5,975)
Other accrued liabilities	(2,121)	(1,249)
Net cash provided by (used in) operating activities	53,828	(54,356)
Investing activities
Proceeds from sales/maturities of investments	0	25,000
Purchase of property and equipment	(73)	0
Net cash (used in) provided by investing activities	(73)	25,000
Financing activities
Payments on revenue interest liability	(5,832)	(3,106)
Proceeds from issuance of common stock, warrants, and pre-funded warrants, net of issuance costs	0	52,598
Proceeds from issuance of common stock, net of issuance costs	90,672	0
Proceeds from exercise of warrants, net of issuance costs	5,766	0
Net cash provided by financing activities	90,606	49,492
Net increase in cash and cash equivalents	144,361	20,136
Cash and cash equivalents at beginning of period	82,248	124,775
Cash and cash equivalents at end of period	226,609	144,911
Supplemental disclosure of cash flow information:
Common stock issuance costs not yet paid	0	170
Purchase of property and equipment not yet paid	195	0
Non cash right of use asset	$ 72	$ 1

The Company and Basis of Presentation	3 Months Ended
The Company and Basis of Presentation	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation Esperion Therapeutics, Inc. ("the Company” or "Esperion") is a pharmaceutical company currently focused on developing and commercializing accessible, oral, once-daily, non-statin medicines for patients struggling with elevated low density lipoprotein cholesterol ("LDL-C"). Through commercial execution and advancing the Company's pre-clinical pipeline, the Company continues to evolve into a differentiated, global biotech. The Esperion team of experts are dedicated to lowering LDL-cholesterol and cardiovascular risk through the discovery, development and commercialization of innovative medicines and their combinations with established medicines. The Company's first two products were approved by the U.S. Food and Drug Administration ("FDA"), European Medicines Agency ("EMA") and Swiss Agency for Therapeutic Products ("Swissmedic") in 2020. The FDA approved expanded indications for NEXLETOL® (bempedoic acid) and NEXLIZET® (bempedoic acid and ezetimibe) tablets in March 2024. NEXLETOL and NEXLIZET are oral, once-daily, non-statin medicines indicated to reduce the risk of myocardial infarction and coronary revascularization in adults who are unable to take recommended statin therapy (including those not taking a statin) with established cardiovascular disease ("CVD"), or at high risk for a CVD event but without established CVD, and to reduce LDL-C in adults with primary hyperlipidemia. The Company completed a global cardiovascular outcomes trial ("CVOT"), —known as Cholesterol Lowering via BEmpedoic Acid, an ACL-inhibiting Regimen ("CLEAR") Outcomes. The trial was designed to evaluate whether treatment with bempedoic acid reduced the risk of cardiovascular events in patients who are statin averse and who have CVD or are at high risk for CVD. The Company initiated the CLEAR Outcomes CVOT in December 2016 and fully enrolled the study with nearly 14,000 patients in August 2019. The primary endpoint of the study was the effect of bempedoic acid on four types of major adverse cardiovascular events ("MACE") (cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, or coronary revascularization; also referred to as "four-component MACE"). CLEAR Outcomes was an event-driven trial and concluded once the predetermined number of MACE endpoints occurred. The study showed that bempedoic acid demonstrated significant cardiovascular risk reductions and significantly reduced the risk of heart attack and coronary revascularization as compared to placebo. These results were seen in a broad population of primary and secondary prevention patients who are unable to maximize or tolerate a statin. The proportions of patients experiencing adverse events and serious adverse events were similar between the active and placebo treatment groups. Bempedoic acid, contained in NEXLETOL (bempedoic acid) tablets and NEXLIZET (bempedoic acid and ezetimibe) tablets, became the first LDL-C lowering therapy since statins proven to lower hard ischemic events, not only in those with atherosclerotic cardiovascular disease ("ASCVD") but also in the large number of primary prevention patients for whom limited therapies exist. On January 2, 2024, the Company entered into a settlement agreement with Daiichi Sankyo Europe GmbH ("DSE") to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York ("Settlement Agreement"). Under the Settlement Agreement, DSE agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company's oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed. Refer to Note 3 "Collaborations with Third Parties" and Note 5 "Commitments and Contingencies" for further information. On January 18, 2024, the Company entered into an Underwriting Agreement (the "Underwriting Agreement") with Jefferies LLC ("Jefferies"), as representative of several underwriters (the "Underwriters"), related to an underwritten public offering (the "January 2024 Offering") of 56,700,000 shares of Common Stock of the Company, par value $0.001 per share, at a purchase price to the public of $1.50 per share. The Underwriters were also granted a 30-day option to purchase up to an additional 8,505,000 shares of Common Stock, at the public offering price. On January 19, 2024, Jefferies gave notice to the Company of its election to exercise the option to purchase additional shares, in full. Giving effect to the exercise of Underwriters' option, the January Offering closed on January 23, 2024, with proceeds to the Company of approximately $90.7 million, after deducting the underwriting discount and estimated offering expenses of $7.1 million. On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin, and are now the only LDL-C lowering non-statin drugs indicated for primary prevention patients. The Company’s pending label expansions in Europe remain on track, with a positive opinion received from the Committee for Medicinal Products for Human Use (“CHMP”) on March 21, 2024. The Company anticipates a final determination by the European Medicines Agency in the second quarter of 2024. The Company's primary activities since incorporation have been conducting research and development activities, including nonclinical, preclinical and clinical testing, performing business and financial planning, recruiting personnel, raising capital, and commercializing its products. The Company received approval by the FDA in February 2020 to commercialize NEXLETOL and NEXLIZET in the U.S., and accordingly commenced principal operations on March 30, 2020 with the commercialization of NEXLETOL. The Company is subject to risks and uncertainties which include the need to successfully commercialize its products, research, develop, and clinically test therapeutic products; obtain regulatory approvals for its products; successfully manage relationships with its collaboration partners; expand its management, commercial and scientific staff; and finance its operations with an ultimate goal of achieving profitable operations. The Company has sustained annual operating losses since inception and expects such losses to continue over the foreseeable future. While management believes current cash resources and future cash received from the Company's net product sales and collaboration agreements with DSE, Otsuka Pharmaceutical Co., Ltd ("Otsuka"), and Daiichi Sankyo Co. Ltd ("DS"), entered into on January 2, 2019, April 17, 2020 and April 26, 2021, respectively, will fund operations for the foreseeable future, management may continue to fund operations and advance the development of the Company's products and product candidates through a combination of collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings, and permitted private and public equity offerings or through other sources. If adequate funds are not available, the Company may not be able to continue the development of its current products or future product candidates, or to commercialize its current or future product candidates, if approved. Basis of Presentation The accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2023, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates. Cash and Cash Equivalents The Company invests its excess cash in bank deposits, money market accounts, and short-term investments. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are reported at fair value. Investments Investments are considered to be available-for-sale and are carried at fair value. Unrealized gains and losses, if any, are reported in accumulated other comprehensive income (loss). The cost of investments classified as available-for-sale are adjusted for the amortization of premiums and accretion of discounts to maturity and recorded in other income, net. Realized gains and losses, if any, are determined using the specific identification method and recorded in other income, net. Investments with original maturities beyond 90 days at the date of purchase and which mature at, or less than twelve months from, the balance sheet date are classified as current. Investments with a maturity beyond twelve months from the balance sheet date are classified as long-term. Concentration of Risk The Company enters into a limited number of distribution agreements with distributors and specialty pharmacies. The Company's net product sales are with these customers. As of March 31, 2024 and December 31, 2023, eleven customers accounted for all of the Company's net trade receivables. As of March 31, 2024 and December 31, 2023, three customers hold approximately 99% and 96% of the Company's trade receivables associated with net product sales, respectively. In the three months ended March 31, 2024 and 2023, three customers accounted for approximately 99% and 99% of gross sales of NEXLETOL and NEXLIZET, respectively. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization, including royalties, of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET. a.Collaboration Revenue The Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied. The collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is "distinct"), or whether such promises should be combined as a single performance obligation. The terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones as consideration when it is probable that a future reversal is unlikely to occur. For sales-based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties. At the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company, through its third party contract manufacturing partners, may manufacture and supply quantities of active pharmaceutical ingredient (“API”) or bulk tablets reasonably required by collaboration partners for the development or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive income (loss). Under the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborator. b.Product Sales, Net On February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin. Net product sales totaled $24.8 million for the three months ended March 31, 2024, and $17.0 million for the three months ended March 31, 2023. The Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S. and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract. Product sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Liabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Accrued variable consideration” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to trade accounts receivable in the condensed balance sheets. Forms of Variable Consideration Rebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration ("VA") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed. Co-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators. Distribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales. Product Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel. Discounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns. Inventories Inventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out ("FIFO") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized. The Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of goods sold in the period in which they are incurred. Recently Implemented Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are included within each reported measure of segment profit or loss and regularly reviewed by the chief operating decision maker ("CODM"), the title and position of the CODM, clarification regarding the CODM's use of multiple measures of a segment's profit or loss in assessing segment performance (this must include a measure that is consistent with the measurement principles under U.S. GAAP, but may also include additional measures of a segment's profit or loss), and a description of the composition of amounts within an "Other" segment line item. Further, ASU 2023-07 requires that all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be provided in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-07 will have on the Company’s financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures to further disaggregate the effective tax rate reconciliation and income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 should be adopted prospectively, but retrospective application is permitted. Further, early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-09 will have on the Company’s financial statement disclosures. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Collaborations with Third Parties	3 Months Ended
Collaborations with Third Parties	Mar. 31, 2024
Collaborations with Third Parties
Collaborations with Third Parties	Collaborations with Third Parties DSE Agreement Terms On January 2, 2019, the Company entered into a license and collaboration agreement with DSE, which was further amended on June 18, 2020, and January 2, 2024 (as amended, the “DSE Agreement”). Pursuant to the DSE Agreement, the Company granted DSE exclusive commercialization rights to bempedoic acid and the bempedoic acid / ezetimibe combination tablet in the European Economic Area, United Kingdom, Turkey, and Switzerland (collectively, the “DSE Territory”). DSE is responsible for commercialization in the DSE Territory. DSE's designated affiliate in Turkey will be solely responsible, at its sole cost and expense, for all regulatory matters relating to such products in Turkey, including obtaining regulatory approval for such products in Turkey. The Company remains responsible for clinical development, regulatory and manufacturing activities for the licensed products globally, including in the DSE Territory outside of Turkey. Pursuant to the DSE Agreement, the Company received upfront cash of $150.0 million in 2019 and a $150.0 million cash milestone payment in 2020 following the completion of the NUSTENDI Marketing Authorisation Applications ("MAA"). The Company is responsible for supplying DSE with certain manufacturing supply of the API or bulk tablets. In addition, the Company is eligible to receive additional sales milestone payments related to total net sales achievements for DSE in the DSE Territory. Finally, the Company is entitled to receive tiered fifteen percent (15%) to twenty-five percent (25%) royalties on net DSE Territory sales. The DSE Agreement calls for both parties to participate in a Joint Collaboration Committee (the “DSE JCC”). The DSE JCC is comprised of executive management from each company and the Company will lead in all aspects related to development and DSE will lead in all aspects related to commercialization in the DSE Territory. On January 2, 2024, the Company entered into the Settlement Agreement with DSE to amicably resolve and dismiss their commercial dispute in the Southern District of New York. Under the Settlement Agreement, DSE has agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company’s oral non-statin products marketed as NILEMDO (bempedoic acid) tablets and NUSTENDI (bempedoic acid and ezetimibe) tablets in Europe. Pursuant to the Settlement Agreement, also on January 2, 2024, the Company entered into a 3rd Amendment (the “DSE Amendment”) to the License and Collaboration Agreement dated January 2, 2019 with DSE. The DSE Amendment grants DSE the exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DSE Territory. Further, after a transition period, DSE will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DSE Territory. As of January 2, 2024, DSE has sole authority and control of regulatory communications with the EMA regarding the pending marketing authorization applications for NILEMDO and NUSTENDI. Collaboration Revenue The Company considered the guidance under ASC 606 and concluded that the Settlement Agreement was in the scope of ASC 606. The Company determined that significantly all the upfront payment of $100 million from the transaction price received under the Settlement Agreement qualified for revenue recognition as it related to settlement of performance obligations completed under the DSE Agreement, including: 1) the settlement of the disputed milestone, which relates to variable consideration for full satisfied performance obligations, and 2) the developmental rights for the triple combination pill. In the three months ended March 31, 2024, the Company recognized collaboration revenue of approximately $113.0 million made up of milestone from the Settlement Agreement, royalty revenue from DSE and sales of bulk tablets to DSE pursuant to the supply agreement that was executed with DSE. In the three months ended March 31, 2023, the Company recognized collaboration revenue of approximately $7.1 million related to royalty revenue from DSE from the sales of NILEMDO and NUSTENDI as well as the sales of bulk tablets to DSE pursuant to the supply agreement that was executed with DSE. All remaining future potential milestone amounts, including the $25 million payment based on the EMA decision on the application for NILEMDO and NUSTENDI, were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to sales-based milestones will be recognized when the subsequent sales occur. Otsuka Agreement Terms On April 17, 2020, the Company entered into a license and collaboration agreement (the "Otsuka Agreement") with Otsuka. Pursuant to the Otsuka Agreement, the Company granted Otsuka exclusive development and commercialization rights to NEXLETOL and NEXLIZET in Japan (the "Otsuka Territory"). Otsuka will be responsible for all development, regulatory, and commercialization activities in Japan. In addition, Otsuka will fund all clinical development costs associated with the program in Japan. Pursuant to the Otsuka Agreement, the consideration consists of a $60.0 million upfront cash payment and the Company will be eligible to receive additional payments of up to $450.0 million if certain regulatory and commercial milestones are achieved by Otsuka. The potential future milestone payments include up to $20.0 million upon first JNDA submissions in the Otsuka Territory, up to $70.0 million upon the first NHI Price Listing (as defined in the Otsuka Agreement) for NEXLETOL in the Otsuka Territory, and following Regulatory Approval and NHI Price Listing, up to $50.0 million upon the achievement of the primary major adverse cardiovascular events (“MACE”) endpoint in the CLEAR Outcomes study and the CV risk reduction rate in the U.S. label, depending on the range of relative risk reduction in the CLEAR Outcomes study. In addition, the Company is eligible to receive additional sales milestone payments up to $310.0 million related to total net sales achievements for Otsuka in Japan. Finally, the Company is entitled to receive tiered fifteen percent (15%) to thirty percent (30%) royalties on net sales in Japan. Collaboration Revenue The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. In the three months ended March 31, 2024 and March 31, 2023, the Company did not have any collaboration revenue related to the Otsuka Agreement. All future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur. The Company has not yet recognized any revenue for milestone payments as the related regulatory and commercial milestones have not yet been achieved. DS Agreement Terms In April 2021, the Company entered into a license and collaboration agreement with Daiichi Sankyo Co. Ltd (the "DS Agreement"). Pursuant to the DS Agreement, the Company granted DS exclusive rights to develop and commercialize bempedoic acid and the bempedoic acid / ezetimibe combination tablet in South Korea, Taiwan, Hong Kong, Thailand, Vietnam, Brazil, Macao, Cambodia and Myanmar (collectively, the "DS Territory"). The DS Agreement allows for potential expansion across geographies including Saudi Arabia, Kuwait, Oman, UAE, Qatar, Bahrain, Yemen, Colombia and other Latin American countries. Except for certain development activities in South Korea and Taiwan, DS will be responsible for development and commercialization in these territories. In addition, DS will fund all development costs associated with the program in the DS Territory. Pursuant to the DS Agreement, the consideration consists of a $30.0 million upfront cash payment that is non-refundable, non-reimbursable and non-creditable. The Company is also eligible to receive additional one-time payments of up to $175.0 million if certain commercial milestones are achieved by DS. Also, the Company is entitled to receive tiered royalties of five percent (5%) to twenty percent (20%) of net sales in the DS Territory. Pursuant to the Settlement Agreement, on January 2, 2024, the Company entered into the 1st Amendment (the “DS Amendment”) to the License and Collaboration Agreement with DS. The DS Amendment grants DS exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DS Territory. Further, after a transition period, DS will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DS Territory. Collaboration Revenue The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. The Company concluded that the upfront payment of $30.0 million should be included in the transaction price and related to the following performance obligations under the agreement: 1) the license to the Company’s intellectual property and 2) the obligation to provide ongoing development activities. The Company used the adjusted market assessment approach in determining the standalone selling price of the Company’s intellectual property and the expected cost plus margin approach in determining the standalone selling price of the Company’s obligation to provide ongoing development activities. The Company did not have any collaboration revenue in three months ended March 31, 2024 aside from that discussed in the "DSE Agreement Terms" section above. The Company recognized $0.2 million of collaboration revenue related to the ongoing regulatory and development activities for the three months ended March 31, 2023. All future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur.

Inventories, net

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Raw materials	$	67,116	$	61,890
Work in process	3,563		1,728
Finished goods	2,416		2,005

	$	73,095	$	65,623

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies DSE Litigation On March 27, 2023, the Company filed a complaint in the United States District Court for the Southern District of New York seeking declaratory judgment against DSE regarding the Company’s right to receive a $300 million milestone payment upon inclusion of cardiovascular risk reduction in the EU label that correlates with a relative risk reduction rate of at least 20%, based on the results of the CLEAR Outcomes CVOT. On May 4, 2023, the Company filed an amended complaint against DSE in the Southern District of New York seeking a judicial declaration, on an expedited basis, that DSE is contractually required to make a $300 million milestone payment to the Company upon applicable regulatory approval. On June 20, 2023, DSE filed a response to the amended complaint. On January 2, 2024, the Company entered into the Settlement Agreement with DSE to amicably resolve and dismiss the commercial dispute then pending in the Southern District of New York. Under the Settlement Agreement, DSE agreed to pay the Company an aggregate of $125 million, including (1) a $100-million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25-million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company's oral non-statin products marketed as NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in Europe. The application asks the EMA to approve both NILEMDO and NUSTENDI to reduce cardiovascular risk in patients with or at high risk for atherosclerotic cardiovascular disease. The legal action pending in the United States District Court for the Southern District of New York has now been dismissed. Refer to Note 3 “Collaborations with Third Parties” for further information. ANDA Litigation In March 2024, the Company received notices from nine pharmaceutical companies (each, a “NEXLETOL ANDA Filer”), that each company had filed an Abbreviated New Drug Application (“ANDA”) with the FDA seeking approval of a generic version of NEXLETOL. Subsequently, in April 2024, the Company received a notice from three pharmaceutical companies (each, a “NEXLIZET ANDA Filer” and together with the NEXLETOL ANDA Filers, each, an “ANDA Filer”) that each company had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET. The ANDAs each contained Paragraph IV certifications alleging that certain of the Company’s Orange Book listed patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted. Under the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act to the Federal Food, Drug, and Cosmetic Act (the “FDCA”), the Company has 45 days from receipt of the notice letters to commence patent infringement lawsuits against these generic drug manufacturers in a federal district court to trigger a stay precluding the FDA’s approval of any ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLETOL or NEXLIZET, as applicable, new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. The Company is conducting its necessary due diligence and intends to file lawsuits within the 45-day period.

Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

The following table summarizes the Company’s cash equivalents and short-term investments (in thousands):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	195,088	$	—	$	—	$	195,088
Certificates of deposit	402		—		—		402


Total	$	195,490	$	—	$	—	$	195,490


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	68,445	$	—	$	—	$	68,445


Certificates of deposit	402		—		—		402




Total	$	68,847	$	—	$	—	$	68,847

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements


Level 1 inputs:						Quoted prices for identical assets or liabilities in active markets;

Level 2 inputs:						Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data; and

Level 3 inputs:						Unobservable inputs that are supported by little or no market activity and require the reporting entity to develop assumptions that market participants would use when pricing the asset or liability.

The following table presents the Company’s financial assets that have been measured at fair value on a recurring basis (in thousands):


Description	Total		Level 1		Level 2		Level 3

March 31, 2024
Assets:
Money market funds	$	195,088	$	195,088	$	—	$	—
Certificates of deposit	402		402		—		—

Total assets at fair value	$	195,490	$	195,490	$	—	$	—
December 31, 2023
Assets:
Money market funds	$	68,445	$	68,445	$	—	$	—
Certificates of deposit	402		402		—		—



Total assets at fair value	$	68,847	$	68,847	$	—	$	—

There were no transfers between Levels 1, 2 or 3 during the three months ended March 31, 2024 and 2023.

Liability Related to the Revenue Interest Purchase Agreement

3 Months Ended

Mar. 31, 2024

RIPA Amendments

The effective annual imputed interest rate is 15.7% as of March 31, 2024. Payments made to Oberland as a result of the Company’s net sales will reduce the revenue interest liability.

The following table summarizes the revenue interest liability activity during the three months ended March 31, 2024:


	(in thousands)
Total revenue interest liability at December 31, 2023	$	274,778
Interest expense recognized	10,937
Revenue Interests payments	(5,832)
Total revenue interest liability at March 31, 2024	$	279,883

Convertible Notes	3 Months Ended
Convertible Notes	Mar. 31, 2024
Debt Disclosure [Abstract]
Convertible Notes	Convertible Notes In November 2020, the Company issued $280.0 million aggregate principal amount of 4.0% senior subordinated convertible notes due November 2025. The net proceeds the Company received from the offering was approximately $271.1 million, after deducting the initial purchasers’ discounts and commissions and offering expenses payable by the Company (the "Convertible Notes") of $8.9 million. The Company used approximately $46.0 million of the net proceeds from the offering of the notes to pay the cost of the Capped Call (as defined below) and $55.0 million of the net proceeds from the offering of the initial notes to finance the Prepaid Forward (as defined below). The Convertible Notes are the Company's senior unsecured obligations and mature on November 15, 2025 (the “Maturity Date”), unless earlier repurchased or converted into shares of Common Stock under certain circumstances described below. The Convertible Notes are convertible into shares of Common Stock, can be repurchased for cash, or a combination thereof, at the Company’s election, at an initial conversion rate of 30.2151 shares of Common Stock per $1,000 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $33.096 per share of Common Stock, subject to adjustment. The Company will pay interest on the Convertible Notes semi-annually in arrears on May 15 and November 15 of each year. The Convertible Notes are general unsecured obligations of the Company that are subordinated in right of payment to indebtedness, obligations and other liabilities under the Company’s RIPA, the revenue interests issued pursuant to such agreement, and any refinancing of the foregoing. Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2025 in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2021 (and only during such calendar quarter), if the last reported sale price per share of Common Stock is greater than or equal to 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five business days after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of Common Stock and the conversion rate for the notes on each such trading day; (3) if the Company calls such notes for redemption, any such notes that have been called for redemption may be converted at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date, but only with respect to the notes called for redemption; and (4) upon the occurrence of specified corporate events, as provided in the Indenture. On or after August 15, 2025, to the close of business on the second scheduled trading day immediately before the maturity date, holders may convert all or any portion of their notes at the applicable conversion rate at any time at the option of the holder regardless of the foregoing conditions. In addition, following certain corporate events or following issuance of a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or to convert its notes called (or deemed called) for redemption during the related redemption period, as the case may be. The Convertible Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after November 20, 2023 and before the 41st scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date the Company sends the related redemption notice, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company sends such redemption notice. No sinking fund is provided for the notes. If the Company redeems less than all the outstanding notes, at least $125.0 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date. If the Company undergoes a “fundamental change” (as defined in the Indenture), holders may require the Company to repurchase their notes for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest, to, but excluding, the fundamental change repurchase date. The Indenture includes customary terms and covenants, including certain events of default. On October 22, 2021, the Company entered into a privately negotiated exchange agreement (the “Exchange Agreement”) with two co-managed holders (the “Holders”) of its Convertible Notes. Under the terms of the Exchange Agreement the Holders agreed to exchange (the “Exchange”) with the Company $15.0 million aggregate principal amount of the Convertible Notes held in the aggregate by them (and accrued interest thereon) for shares of Common Stock. Pursuant to the Exchange Agreement, the number of shares of Common Stock to be issued by the Company to the Holders upon consummation of the Exchange was determined based upon the volume-weighted-average-price per share of Common Stock, subject to a floor of $5.62 per share, during the five trading-day averaging period, commencing on the trading day immediately following the date of the Exchange Agreement. The Exchange closed on November 3, 2021, with 1,094,848 shares of Common Stock being exchanged. As of March 31, 2024, the principal amount of convertible notes was $265.0 million, and the unamortized debt discount and issuance costs were $3.0 million, for a net carrying amount of $262.0 million. The Company recorded $3.1 million of interest expense during the three months ended March 31, 2024, and $3.1 million of interest expense during the three months ended March 31, 2023, relating to the cash interest on the convertible notes due semi-annually and amortization of the debt issuance costs. As of March 31, 2024, no Convertible Notes were convertible pursuant to their terms. The estimated fair value of the Convertible Notes was $220.4 million as of March 31, 2024 and $155.9 million as of December 31, 2023. The estimated fair value of the Convertible Notes was determined through consideration of quoted market prices. As of March 31, 2024, the if-converted value of the Convertible Notes did not exceed the principal value of those notes. Capped Call Transactions In connection with the offering of the Convertible Notes, the Company entered into privately-negotiated capped call transactions with one of the initial purchasers of the convertible notes or its affiliate and certain other financial institutions. The Company used approximately $46.0 million of the net proceeds from the offering of the Convertible Notes to pay the cost of the capped call transactions. The capped call transactions are expected generally to reduce potential dilution to Common Stock upon any conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be, in the event that the market value per share of Common Stock, as measured under the terms of the capped call transactions at the time of exercise, is greater than the strike price of the capped call transactions (which initially corresponds to the initial conversion price of the Convertible Notes, and is subject to certain adjustments), with such reduction and/or offset subject to a cap initially equal to approximately $55.16 (which represents a premium of approximately 100% over the last reported sale price of Common Stock on November 11, 2020), subject to certain adjustments. The capped call transactions are separate transactions, entered into by the Company and are not part of the terms of the Convertible Notes. Given that the transactions meet certain accounting criteria, the convertible note capped call transactions are recorded in stockholders’ equity, and they are not accounted for as derivatives and are not remeasured each reporting period. As of March 31, 2024 and December 31, 2023, the Company had not purchased any shares under the convertible note capped call transactions. Prepaid Forward In connection with the offering of the Convertible Notes, the Company entered into a prepaid forward stock repurchase transaction (“Prepaid Forward”) with a financial institution (“Forward Counterparty”). Pursuant to the Prepaid Forward, the Company used approximately $55.0 million of the net proceeds from the offering of the Convertible Notes to fund the Prepaid Forward. The aggregate number of shares of Common Stock underlying the Prepaid Forward was approximately 1,994,198. The expiration date for the Prepaid Forward is November 15, 2025, although it may be settled earlier in whole or in part. Upon settlement of the Prepaid Forward, at expiration or upon any early settlement, the Forward Counterparty will deliver to the Company the number of shares of Common Stock underlying the Prepaid Forward or the portion thereof being settled early. The shares purchased under the Prepaid Forward are treated as treasury stock and not outstanding for purposes of the calculation of basic and diluted earnings per share, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders’ votes, until the Forward Counterparty delivers the shares underlying the Prepaid Forward to the Company. As of March 31, 2024, 448,698 shares had been delivered to the Company. The Company’s Prepaid Forward hedge transaction exposes the Company to credit risk to the extent that its counterparty may be unable to meet the terms of the transaction. The Company mitigates this risk by limiting its counterparty to a major financial institution.

Other Accrued Liabilities

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Accrued legal fees	$	9,662	$	9,202
Accrued compensation	5,966		10,769
Accrued professional fees	3,247		2,712
Accrued interest on convertible notes	3,975		1,325
Accrued other	290		990
Total other accrued liabilities	$	23,140	$	24,998

Stock Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock Compensation

2022 Stock Option and Incentive Plan

Employee Stock Purchase Plan

2017 Inducement Equity Plan

Stock Options

The following table summarizes the activity relating to the Company’s options to purchase Common Stock for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	3,686,191	$	13.88	7.47	$	584
Granted	1,757,000	$	2.05
Forfeited or expired	(47,000)	$	24.57
Exercised	—	$	—
Outstanding at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Vested and expected to vest at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Exercisable at March 31, 2024	1,847,040	$	22.25	6.02	$	30

Performance-Based Stock Options ("PBSOs")

The following table summarizes the activity relating to the Company’s PBSOs for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	661,850	$	4.97	8.63	$	312
Granted	—	$	—
Forfeited or expired	—	$	—
Exercised	—	$	—
Outstanding at March 31, 2024	661,850	$	4.97	8.38	$	242
Vested and expected to vest at March 31, 2024	661,850	$	4.97	8.38	$	242
Exercisable at March 31, 2024	661,850	$	4.97	8.38	$	242

Restricted Stock Units ("RSUs")

The following table summarizes the activity relating to the Company’s RSUs for the three months ended March 31, 2024:


	Number of RSUs	Weighted-Average Fair Value Per Share
Outstanding and unvested December 31, 2023	3,047,888	$	4.69
Granted	3,295,225	$	2.08
Forfeited	(18,754)	$	4.31
Vested	(283,408)	$	6.55
Outstanding and unvested March 31, 2024	6,040,951	$	3.18

Performance-based Restricted Stock Units ("PBRSUs")

The following table summarizes the activity relating to the Company's PBRSUs for the three months ended March 31, 2024:


	Number of PBRSUs	Weighted-average fair value per share
Outstanding and unvested December 31, 2023	160,275	$	8.94
Granted	—	$	—
Forfeited	(3,900)	$	8.94
Vested	(156,375)	$	8.94
Outstanding and unvested March 31, 2024	—	$	—

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThere was no provision for income taxes for the three months ended March 31, 2024 and 2023, because the Company has incurred annual operating losses since inception. At March 31, 2024, the Company continues to conclude that it is not more likely than not that the Company will realize the benefit of its deferred tax assets due to its history of losses. Accordingly, a full valuation allowance has been applied against the net deferred tax assets.

Stockholders' Deficit

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Deficit

Underwriting Agreement

ATM Offering

Warrants

Registered Direct Offering and Warrant Amendment

consideration of $0.125 per amended warrant. Based on the change in the fair value of the amended warrants, the Company recorded issuance costs to additional paid-in capital of $2.9 million.


	March 31, 2024	December 31, 2023	Weighted average exercise price
Warrants outstanding from Warrant Amendment Agreements, expiring September 22, 2026	9,024,212	9,024,212	$	1.55
Warrants outstanding from Purchase Agreement, expiring September 22, 2026	23,320,000	27,320,000	$	1.55
Total warrants outstanding	32,344,212	36,344,212

Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

The following table summarizes the calculation of basic and diluted net income (loss) per share:


	March 31,
(in thousands, except share and per share data)	2024		2023
Net income (loss) - basic	$	61,022	$	(61,719)
Adjustments for dilutive earnings per share:
Interest expense for convertible notes, less amortization of debt issuance costs	2,650		—
Net income (loss) - diluted	$	63,672	$	(61,719)

Weighted average shares - basic	169,258,564		78,440,266
Effect of dilutive common stock equivalents:
Warrants	11,713,131		—
Shares issuable upon conversion of convertible notes	8,007,010		—
Common shares under option	54,217		—
Common shares under PBSOs	55,678		—
Unvested RSUs	478,229		—
Unvested PBRSUs	74,422		—
Dilutive common stock equivalents	20,382,687		—
Weighted average shares - diluted	189,641,251		78,440,266

Net income (loss) per common share – basic	$	0.36	$	(0.79)
Net income (loss) per common share – diluted	$	0.34	$	(0.79)

The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	March 31,
	2024	2023
Common shares under option	5,228,191	4,374,452
Common shares under PBSOs	433,950	433,950
Unvested RSUs	2,204,617	3,117,397
Unvested PBRSUs	—	191,375
Shares issuable related to the ESPP	—	33,575
Shares issuable upon conversion of convertible notes	—	8,007,010
Warrants	—	70,135,033
Total potential dilutive shares	7,866,758	86,292,792

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2023, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company invests its excess cash in bank deposits, money market accounts, and short-term investments. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are reported at fair value.
Investments	Investments Investments are considered to be available-for-sale and are carried at fair value. Unrealized gains and losses, if any, are reported in accumulated other comprehensive income (loss). The cost of investments classified as available-for-sale are adjusted for the amortization of premiums and accretion of discounts to maturity and recorded in other income, net. Realized gains and losses, if any, are determined using the specific identification method and recorded in other income, net. Investments with original maturities beyond 90 days at the date of purchase and which mature at, or less than twelve months from, the balance sheet date are classified as current. Investments with a maturity beyond twelve months from the balance sheet date are classified as long-term.
Concentration of Risk	Concentration of Risk The Company enters into a limited number of distribution agreements with distributors and specialty pharmacies. The Company's net product sales are with these customers. As of March 31, 2024 and December 31, 2023, eleven customers accounted for all of the Company's net trade receivables. As of March 31, 2024 and December 31, 2023, three customers hold approximately 99% and 96% of the Company's trade receivables associated with net product sales, respectively. In the three months ended March 31, 2024 and 2023, three customers accounted for approximately 99% and 99% of gross sales of NEXLETOL and NEXLIZET, respectively.
Revenue Recognition	Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization, including royalties, of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET. a.Collaboration Revenue The Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied. The collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is "distinct"), or whether such promises should be combined as a single performance obligation. The terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones as consideration when it is probable that a future reversal is unlikely to occur. For sales-based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties. At the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company, through its third party contract manufacturing partners, may manufacture and supply quantities of active pharmaceutical ingredient (“API”) or bulk tablets reasonably required by collaboration partners for the development or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive income (loss). Under the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborator. b.Product Sales, Net On February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin. Net product sales totaled $24.8 million for the three months ended March 31, 2024, and $17.0 million for the three months ended March 31, 2023. The Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S. and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract. Product sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Liabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Accrued variable consideration” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to trade accounts receivable in the condensed balance sheets. Forms of Variable Consideration Rebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration ("VA") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed. Co-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators. Distribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales. Product Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel. Discounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out ("FIFO") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized. The Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of goods sold in the period in which they are incurred.
Recently Implemented Accounting Pronouncements	Recently Implemented Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are included within each reported measure of segment profit or loss and regularly reviewed by the chief operating decision maker ("CODM"), the title and position of the CODM, clarification regarding the CODM's use of multiple measures of a segment's profit or loss in assessing segment performance (this must include a measure that is consistent with the measurement principles under U.S. GAAP, but may also include additional measures of a segment's profit or loss), and a description of the composition of amounts within an "Other" segment line item. Further, ASU 2023-07 requires that all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be provided in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted retrospectively to all periods presented in the financial statements and early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-07 will have on the Company’s financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures to further disaggregate the effective tax rate reconciliation and income taxes paid. This update is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 should be adopted prospectively, but retrospective application is permitted. Further, early adoption is permitted. The Company is currently in the process of determining the impact the implementation of ASU 2023-09 will have on the Company’s financial statement disclosures. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Inventories, net (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories, net consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Raw materials	$	67,116	$	61,890
Work in process	3,563		1,728
Finished goods	2,416		2,005

	$	73,095	$	65,623

Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Company's Cash Equivalents and Short-Term Investments

The following table summarizes the Company’s cash equivalents and short-term investments (in thousands):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	195,088	$	—	$	—	$	195,088
Certificates of deposit	402		—		—		402


Total	$	195,490	$	—	$	—	$	195,490


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	68,445	$	—	$	—	$	68,445


Certificates of deposit	402		—		—		402




Total	$	68,847	$	—	$	—	$	68,847

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of the Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets that have been measured at fair value on a recurring basis (in thousands):


Description	Total		Level 1		Level 2		Level 3

March 31, 2024
Assets:
Money market funds	$	195,088	$	195,088	$	—	$	—
Certificates of deposit	402		402		—		—

Total assets at fair value	$	195,490	$	195,490	$	—	$	—
December 31, 2023
Assets:
Money market funds	$	68,445	$	68,445	$	—	$	—
Certificates of deposit	402		402		—		—



Total assets at fair value	$	68,847	$	68,847	$	—	$	—

Liability Related to the Revenue Interest Purchase Agreement (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Revenue Interest Liability Activity During the Period

The following table summarizes the revenue interest liability activity during the three months ended March 31, 2024:


	(in thousands)
Total revenue interest liability at December 31, 2023	$	274,778
Interest expense recognized	10,937
Revenue Interests payments	(5,832)
Total revenue interest liability at March 31, 2024	$	279,883

Other Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Schedule of Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):


	March 31, 2024		December 31, 2023
Accrued legal fees	$	9,662	$	9,202
Accrued compensation	5,966		10,769
Accrued professional fees	3,247		2,712
Accrued interest on convertible notes	3,975		1,325
Accrued other	290		990
Total other accrued liabilities	$	23,140	$	24,998

Stock Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Activity Relating to the Company's Options and Performance-Based Options to Purchase Common Stock

The following table summarizes the activity relating to the Company’s options to purchase Common Stock for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	3,686,191	$	13.88	7.47	$	584
Granted	1,757,000	$	2.05
Forfeited or expired	(47,000)	$	24.57
Exercised	—	$	—
Outstanding at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Vested and expected to vest at March 31, 2024	5,396,191	$	9.94	8.18	$	1,569
Exercisable at March 31, 2024	1,847,040	$	22.25	6.02	$	30

The following table summarizes the activity relating to the Company’s PBSOs for the three months ended March 31, 2024:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	661,850	$	4.97	8.63	$	312
Granted	—	$	—
Forfeited or expired	—	$	—
Exercised	—	$	—
Outstanding at March 31, 2024	661,850	$	4.97	8.38	$	242
Vested and expected to vest at March 31, 2024	661,850	$	4.97	8.38	$	242
Exercisable at March 31, 2024	661,850	$	4.97	8.38	$	242

Summary of Activity Relating to the Company's RSUs

The following table summarizes the activity relating to the Company’s RSUs for the three months ended March 31, 2024:


	Number of RSUs	Weighted-Average Fair Value Per Share
Outstanding and unvested December 31, 2023	3,047,888	$	4.69
Granted	3,295,225	$	2.08
Forfeited	(18,754)	$	4.31
Vested	(283,408)	$	6.55
Outstanding and unvested March 31, 2024	6,040,951	$	3.18

Summary of Activity Relating to the Company's PBRSU's

The following table summarizes the activity relating to the Company's PBRSUs for the three months ended March 31, 2024:


	Number of PBRSUs	Weighted-average fair value per share
Outstanding and unvested December 31, 2023	160,275	$	8.94
Granted	—	$	—
Forfeited	(3,900)	$	8.94
Vested	(156,375)	$	8.94
Outstanding and unvested March 31, 2024	—	$	—

Stockholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Summary of Warrants and Pre-funded Warrants Outstanding

The following table summarizes the warrants outstanding for the Company as of March 31, 2024 and December 31, 2023:


	March 31, 2024	December 31, 2023	Weighted average exercise price
Warrants outstanding from Warrant Amendment Agreements, expiring September 22, 2026	9,024,212	9,024,212	$	1.55
Warrants outstanding from Purchase Agreement, expiring September 22, 2026	23,320,000	27,320,000	$	1.55
Total warrants outstanding	32,344,212	36,344,212

Net Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Calculation of Basic and Diluted (Loss) Income Per Share


	March 31,
(in thousands, except share and per share data)	2024		2023
Net income (loss) - basic	$	61,022	$	(61,719)
Adjustments for dilutive earnings per share:
Interest expense for convertible notes, less amortization of debt issuance costs	2,650		—
Net income (loss) - diluted	$	63,672	$	(61,719)

Weighted average shares - basic	169,258,564		78,440,266
Effect of dilutive common stock equivalents:
Warrants	11,713,131		—
Shares issuable upon conversion of convertible notes	8,007,010		—
Common shares under option	54,217		—
Common shares under PBSOs	55,678		—
Unvested RSUs	478,229		—
Unvested PBRSUs	74,422		—
Dilutive common stock equivalents	20,382,687		—
Weighted average shares - diluted	189,641,251		78,440,266

Net income (loss) per common share – basic	$	0.36	$	(0.79)
Net income (loss) per common share – diluted	$	0.34	$	(0.79)

Schedule of Shares Excluded From Calculation of Diluted Net (Loss) Income Per Share

The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	March 31,
	2024	2023
Common shares under option	5,228,191	4,374,452
Common shares under PBSOs	433,950	433,950
Unvested RSUs	2,204,617	3,117,397
Unvested PBRSUs	—	191,375
Shares issuable related to the ESPP	—	33,575
Shares issuable upon conversion of convertible notes	—	8,007,010
Warrants	—	70,135,033
Total potential dilutive shares	7,866,758	86,292,792

The Company and Basis of Presentation (Details) $ / shares in Units, $ in Millions			1 Months Ended	12 Months Ended
	Jan. 18, 2024 USD ($) $ / shares shares	Jan. 02, 2024 USD ($)	Aug. 31, 2019 patient	Dec. 31, 2020 product
Collaborations with Third Parties
Products approved \| product				2
Estimated number of study patients \| patient			14,000
First milestone payment		$ 100.0
Time required to pay cash portion		15 days
Second milestone payment		$ 25.0
Commitment Offering
Collaborations with Third Parties
Issued stock (in shares) \| shares	56,700,000
Price per share (in dollars per share) \| $ / shares	$ 1.50
Proceeds from stock offering, net	$ 90.7
Estimated offering expenses	$ 7.1
Over-Allotment Option
Collaborations with Third Parties
Issued stock (in shares) \| shares	8,505,000
Option period	30 days
Minimum
Collaborations with Third Parties
Aggregate payment agreement		$ 125.0

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) customer revenue_source	Mar. 31, 2023 USD ($)	Dec. 31, 2023 customer
Summary of Significant Accounting Policies
Number of revenue sources \| revenue_source	2
Total Revenues	$ 137,735	$ 24,329
Product sales, net
Summary of Significant Accounting Policies
Total Revenues	$ 24,756	$ 17,031
Trade Receivables \| Customer Concentration Risk
Summary of Significant Accounting Policies
Number of major customers \| customer	11		11
Revenue Benchmark \| Accounts Receivable Risks \| Three Largest Customers
Summary of Significant Accounting Policies
Concentration risk	99.00%		96.00%
Revenue Benchmark \| Product Concentration Risk \| Three Largest Customers
Summary of Significant Accounting Policies
Concentration risk	99.00%	99.00%

Collaborations with Third Parties (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended
	Jan. 02, 2024	Apr. 17, 2020	Jan. 02, 2019	Apr. 30, 2021	Mar. 31, 2024	Mar. 31, 2023
Collaborations with Third Parties
First milestone payment	$ 100,000
Time required to pay cash portion	15 days
Second milestone payment	$ 25,000
Collaboration revenue					$ 137,735	$ 24,329
Minimum
Collaborations with Third Parties
Aggregate payment agreement	$ 125,000
Daiichi Sankyo Europe GmbH ("DSE") \| Royalty revenue and product sales bulk tablets
Collaborations with Third Parties
Collaboration revenue					$ 113,000	7,100
Daiichi Sankyo Europe GmbH ("DSE") \| License and Collaboration Agreement
Collaborations with Third Parties
Upfront cash payment received (paid)			$ 150,000
Cash payment to the Company upon first commercial sales in the DSE Territory			$ 150,000
Daiichi Sankyo Europe GmbH ("DSE") \| License and Collaboration Agreement \| Minimum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales			15.00%
Daiichi Sankyo Europe GmbH ("DSE") \| License and Collaboration Agreement \| Maximum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales			25.00%
Otsuka Pharmaceutical Co, Ltd. \| Exclusive Developmental Activities
Collaborations with Third Parties
Upfront cash payment received (paid)		$ 60,000
Potential additional future payments		$ 450,000
Otsuka Pharmaceutical Co, Ltd. \| Exclusive Developmental Activities \| Minimum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales		15.00%
Otsuka Pharmaceutical Co, Ltd. \| Exclusive Developmental Activities \| Maximum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales		30.00%
Milestone payment, first JNDA submissions		$ 20,000
Milestone payment, first NHI Price Listing for NEXLETOL in the Otsuka Territory		70,000
Milestone payment, achievement of the primary MACE in the CLEAR Outcomes study and CV risk reduction rate on the U.S. label		50,000
Milestone payments related to total net sales achievements		$ 310,000
Daiichi Sankyo Co. Ltd \| License and Collaboration Agreement
Collaborations with Third Parties
Collaboration revenue						$ 200
Consideration cash payment				$ 30,000
Cash payment to be received upon certain commercial milestones				$ 175,000
Daiichi Sankyo Co. Ltd \| License and Collaboration Agreement \| Minimum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales				5.00%
Daiichi Sankyo Co. Ltd \| License and Collaboration Agreement \| Maximum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales				20.00%

Inventories, net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 67,116	$ 61,890
Work in process	3,563	1,728
Finished goods	2,416	2,005
Total Inventory	$ 73,095	$ 65,623

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jan. 02, 2024	May 04, 2023	Mar. 27, 2023
Loss Contingencies [Line Items]
Partner milestone payments		$ 300
First milestone payment	$ 100
Time required to pay cash portion	15 days
Second milestone payment	$ 25
Minimum
Loss Contingencies [Line Items]
Aggregate payment agreement	$ 125
Cardiovascular Risk Outcome Less than Twenty Percent \| Minimum
Loss Contingencies [Line Items]
Partner milestone payments			$ 300
Cardiovascular Risk \| Minimum
Loss Contingencies [Line Items]
Percentage of risk reduction			20.00%

Investments - Summary of Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments
Amortized Cost	$ 195,490	$ 68,847
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	195,490	68,847
Money market funds \| Cash Equivalents
Investments
Amortized Cost	195,088	68,445
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	195,088	68,445
Certificates of deposit \| Cash Equivalents
Investments
Amortized Cost	402	402
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 402	$ 402

Investments - Narrative (Details) - USD ($)	3 Months Ended
Investments - Narrative (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Investments
Accretion (amortization) of premiums and discounts on investments	$ 0	$ 339,000
Other income, net	2,777,000	1,273,000
Allowance for credit loss	0	0
Accrued interest receivable	0
Reclassification out of Accumulated Other Comprehensive Income
Investments
Other income, net	0	0
Other Nonoperating Income (Expense)
Investments
Interest income on investments	2,400,000	900,000
Accretion (amortization) of premiums and discounts on investments	$ 0	$ (300,000)

Fair Value Measurements (Details) - USD ($)	3 Months Ended
Fair Value Measurements (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair value measurements
Transfer of assets between levels	$ 0	$ 0
Recurring fair value measurement
Fair value measurements
Total assets at fair value	195,490,000		$ 68,847,000
Recurring fair value measurement \| Money market funds
Fair value measurements
Total assets at fair value	195,088,000		68,445,000
Recurring fair value measurement \| Certificates of deposit
Fair value measurements
Total assets at fair value	402,000		402,000
Recurring fair value measurement \| Level 1
Fair value measurements
Total assets at fair value	195,490,000		68,847,000
Recurring fair value measurement \| Level 1 \| Money market funds
Fair value measurements
Total assets at fair value	195,088,000		68,445,000
Recurring fair value measurement \| Level 1 \| Certificates of deposit
Fair value measurements
Total assets at fair value	402,000		402,000
Recurring fair value measurement \| Level 2
Fair value measurements
Total assets at fair value	0		0
Recurring fair value measurement \| Level 2 \| Money market funds
Fair value measurements
Total assets at fair value	0		0
Recurring fair value measurement \| Level 2 \| Certificates of deposit
Fair value measurements
Total assets at fair value	0		0
Recurring fair value measurement \| Level 3
Fair value measurements
Total assets at fair value	0		0
Recurring fair value measurement \| Level 3 \| Money market funds
Fair value measurements
Total assets at fair value	0		0
Recurring fair value measurement \| Level 3 \| Certificates of deposit
Fair value measurements
Total assets at fair value	$ 0		$ 0

Liability Related to the Revenue Interest Purchase Agreement - Narrative (Details) - USD ($)					1 Months Ended	3 Months Ended		12 Months Ended
	Nov. 23, 2022	May 16, 2021	Apr. 26, 2021	Jun. 26, 2019	Mar. 31, 2020	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2021	Dec. 31, 2023	Sep. 30, 2021
Liability Related to the Revenue Interest Purchase Agreement
One time partial call	$ 50,000,000
Redemption percentage						225.00%
Redemption amount						$ 400,000,000
Remaining redemption amount						366,700,000
Interest expense						14,024,000	$ 14,387,000
Revenue Interest Purchase Agreement (RIPA)
Liability Related to the Revenue Interest Purchase Agreement
Revenue interest liability						279,883,000			$ 274,778,000
Capitalized issuance costs						200,000
Interest expense						10,900,000	$ 11,300,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland
Liability Related to the Revenue Interest Purchase Agreement
Gross proceeds from revenue interest liability				$ 125,000,000.0
Total amount of subsequent installment, subject to RIPA terms and conditions				75,000,000.0
Amount of subsequent installment, subject to regulatory approval				25,000,000.0
Amount of subsequent installment, subject to achievement of sales threshold				50,000,000.0
Milestone amount for worldwide sales to receive the third payment				$ 100,000,000.0
Proceeds from Revenue Interest Purchase Agreement			$ 50,000,000		$ 25,000,000.0
Revenue interest rate which will take effect if annual net sales equals or exceeds the sales threshold by December 31, 2021				2.50%
Initial revenue interest rate				7.50%
Percentage of invested capital received by December 31, 2024, to qualify for second reduced revenue interest rate				100.00%
Revenue interest rate if annual net sales equal or exceed the Sales Threshold and if the Purchasers receive 100% of their invested capital by December 31, 2024				0.40%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021				$ 350,000,000
Percentage of revenue interests payment on which agreement terminates				195.00%
Trailing number of months sales must be at or above milestone amount			6 months
Cumulative purchaser payment adjustment	$ 177,777,778
Percentage of revenues interests payment on which agreement terminates, after third anniversary		225.00%
Maximum amount of US net sales to qualify for the Covered Territory expansion to include worldwide sales by December 31, 2021								$ 350,000,000
Repayment amount expected to pay in next twelve months						$ 43,500,000
Effective annual imputed interest rate (as a percent)						15.70%
Consecutive number of months sales must be at or above milestone amount				6 months
Percentage of increase in royalty rate upon drawdown of third payment				33.33%
Revenue Interest Purchase Agreement (RIPA) \| Oberland \| Net Sales Less Than $250 Million
Liability Related to the Revenue Interest Purchase Agreement
Initial revenue interest rate		10.00%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021		$ 250,000,000
Hypothetical sales generated amount		100,000,000
Hypothetical repayment obligation		$ 10,000,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland \| Net Sales Greater Than $250 Million But Less Than $350 Million
Liability Related to the Revenue Interest Purchase Agreement
Revenue interest rate which will take effect if annual net sales equals or exceeds the sales threshold by December 31, 2021		3.30%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021		$ 250,000,000
Hypothetical sales generated amount		100,000,000
Hypothetical repayment obligation		3,300,000
RIPA Amendment \| Oberland
Liability Related to the Revenue Interest Purchase Agreement
Revenue interest rate which will take effect if annual net sales equals or exceeds the sales threshold by December 31, 2021			3.33%
Initial revenue interest rate			10.00%
Percentage of invested capital received by December 31, 2024, to qualify for second reduced revenue interest rate			100.00%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2024, contingent on 100% invested capital received			$ 350,000,000
Percentage of revenue interest payments to qualify for third payment applicable percentage			100.00%
Percentage of cumulative purchaser payments			100.00%
Percentage of revenue interests payment on which agreement terminates, prior to the third anniversary of the closing date, if put option is exercised			200.00%
Percentage of revenue interests payment on which agreement terminates, after the third anniversary of the closing date, if put option is exercised			225.00%
RIPA Amendment To The Security Agreement And Waiver \| Oberland
Liability Related to the Revenue Interest Purchase Agreement
Specified net revenue		15,000,000
Company deposit value in blocked account		$ 50,000,000
Restricted cash										$ 50,000,000

Liability Related to the Revenue Interest Purchase Agreement - Summary of Revenue Interest Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Liability From Sale Of Future Revenues [Roll Forward]
Revenue Interests payments	$ (5,832)	$ (3,106)
Revenue Interest Purchase Agreement (RIPA)
Liability From Sale Of Future Revenues [Roll Forward]
Revenue interest liability, beginning balance	274,778
Interest expense recognized	10,937
Revenue Interests payments	(5,832)
Revenue interest liability, ending balance	$ 279,883

Convertible Notes (Details) $ / shares in Units, $ in Millions				1 Months Ended	3 Months Ended
	Nov. 03, 2021 shares	Oct. 22, 2021 USD ($) $ / shares	Nov. 16, 2020 USD ($) $ / shares shares	Nov. 30, 2020 USD ($) day $ / shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Purchase of capped call options associated with convertible notes			$ 46.0	$ 46.0
Prepayment of forward stock repurchase transaction			$ 55.0	55.0
Underlying common stock (in shares) \| shares			1,994,198
Shares delivered to the company (in shares) \| shares					448,698
Capped Call \| Common stock
Debt Instrument [Line Items]
Exercise price (in dollars per share) \| $ / shares			$ 55.16
Class of warrant or right, premium percentage			100.00%
Convertible Senior Notes Due 2025 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, face amount				$ 280.0
Debt instrument, stated interest rate				4.00%
Proceeds from debt, net of issuance costs				$ 271.1
Debt instrument, convertible, conversion ratio				30.2151
Debt instrument, convertible, conversion price (in dollars per share) \| $ / shares				$ 33.096
Debt instrument, redemption price, percentage				100.00%
Exchange Agreement, amount of principal amount converted into common stock		$ 15.0
Exchange Agreement, weighted average price per share floor (in dollars per share) \| $ / shares		$ 5.62
Exchange Agreement, threshold trading days		5 days
Common stock being exchanged (in shares) \| shares	1,094,848
Principal amount of convertible notes					$ 265.0
Debt issuance costs					3.0
Long-term debt					262.0
Debt interest expense					3.1	$ 3.1
Debt fair value					$ 220.4		$ 155.9
Convertible Senior Notes Due 2025 \| Convertible Debt \| Purchaser Discounts And Commissions And Offering Expenses Payable
Debt Instrument [Line Items]
Unamortized debt discount and issuance costs				$ 8.9
Convertible Senior Notes Due 2025 \| Convertible Debt \| Period One
Debt Instrument [Line Items]
Debt instrument, convertible, threshold percentage of stock price trigger				130.00%
Debt instrument, convertible, threshold trading days \| day				20
Average trading-day period \| day				30
Number of business days \| day				5
Number of consecutive trading days \| day				5
Debt instrument, convertible, threshold percentage of last reported sale price				98.00%
Convertible Senior Notes Due 2025 \| Convertible Debt \| Period Two
Debt Instrument [Line Items]
Debt instrument, convertible, threshold percentage of stock price trigger				130.00%
Debt instrument, convertible, threshold trading days \| day				20
Average trading-day period \| day				30
Debt instrument, redemption price, percentage				100.00%
Debt instrument, required amount outstanding				$ 125.0

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued legal fees	$ 9,662	$ 9,202
Accrued compensation	5,966	10,769
Accrued professional fees	3,247	2,712
Accrued interest on convertible notes	3,975	1,325
Accrued other	290	990
Total other accrued liabilities	$ 23,140	$ 24,998

Stock Compensation - Stock Options Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2020	Mar. 31, 2024	Mar. 31, 2023	Aug. 31, 2023	Jun. 30, 2023	May 31, 2022
Stock Option And Incentive Plan 2022
Stock compensation
Number of commons stock shares available for issuance (in shares)					10,650,000	4,400,000
Inducement Equity Plan 2017
Stock compensation
Number of commons stock shares available for issuance (in shares)				2,650,000
ESPP
Stock compensation
Maximum annual contributions per employee, as a percentage of base salary	10.00%
Amount of maximum annual contributions per employee	$ 25
Purchase discount	15.00%
Duration of offering periods	6 months
Stock-based compensation expense		$ 0	$ 100
Shares issued (in shares)		610,506
Shares reserved for future issuance (in shares)		214,494
Common shares under option
Stock compensation
Stock-based compensation expense		$ 900	1,000
Stock-based compensation capitalized into inventory		100	100
Unrecognized stock-based compensation expense, options		$ 8,500
Weighted-average period over which remaining unrecognized compensation cost will be recognized		2 years 8 months 12 days
Common shares under PBSOs
Stock compensation
Stock-based compensation expense		$ 500	200
RSUs
Stock compensation
Stock-based compensation expense		1,600	1,500
Stock-based compensation capitalized into inventory		100	100
Unrecognized stock-based compensation expense, options		$ 18,300
Weighted-average period over which remaining unrecognized compensation cost will be recognized		2 years 10 months 24 days
Unvested PBRSUs
Stock compensation
Stock-based compensation expense		$ 200	100
Stock-based compensation capitalized into inventory		$ 100	$ 100

Stock Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Options
Outstanding at the beginning of period (in shares)	3,686,191
Granted (in shares)	1,757,000
Forfeited or expired (in shares)	(47,000)
Exercised (in shares)	0
Outstanding at the end of the period (in shares)	5,396,191	3,686,191
Vested and expected to vest (in shares)	5,396,191
Exercisable (in shares)	1,847,040
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of period (in dollars per share)	$ 13.88
Granted (in dollars per share)	2.05
Forfeited or expired (in dollars per share)	24.57
Exercised (in dollars per share)	0
Outstanding at the end of the period (in dollars per share)	9.94	$ 13.88
Vested and expected to vest (in dollars per share)	9.94
Exercisable (in dollars per share)	$ 22.25
Weighted-Average Remaining Contractual Term (Years)
Outstanding	8 years 2 months 4 days	7 years 5 months 19 days
Vested and expected to vest	8 years 2 months 4 days
Exercisable	6 years 7 days
Aggregate Intrinsic Value
Outstanding	$ 1,569	$ 584
Vested and expected to vest	1,569
Exercisable	$ 30

Stock Compensation - PBSOs (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Options
Outstanding at the beginning of period (in shares)	3,686,191
Granted (in shares)	1,757,000
Forfeited or expired (in shares)	(47,000)
Exercised (in shares)	0
Outstanding at the end of the period (in shares)	5,396,191	3,686,191
Vested and expected to vest (in shares)	5,396,191
Exercisable (in shares)	1,847,040
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of period (in dollars per share)	$ 13.88
Granted (in dollars per share)	2.05
Forfeited or expired (in dollars per share)	24.57
Exercised (in dollars per share)	0
Outstanding at the end of the period (in dollars per share)	9.94	$ 13.88
Vested and expected to vest (in dollars per share)	9.94
Exercisable (in dollars per share)	$ 22.25
Weighted-Average Remaining Contractual Term (Years)
Outstanding	8 years 2 months 4 days	7 years 5 months 19 days
Vested and expected to vest	8 years 2 months 4 days
Exercisable	6 years 7 days
Aggregate Intrinsic Value
Outstanding	$ 1,569	$ 584
Vested and expected to vest	1,569
Exercisable	$ 30
Common shares under PBSOs
Number of Options
Outstanding at the beginning of period (in shares)	661,850
Granted (in shares)	0
Forfeited or expired (in shares)	0
Exercised (in shares)	0
Outstanding at the end of the period (in shares)	661,850	661,850
Vested and expected to vest (in shares)	661,850
Exercisable (in shares)	661,850
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of period (in dollars per share)	$ 4.97
Granted (in dollars per share)	0
Forfeited or expired (in dollars per share)	0
Exercised (in dollars per share)	0
Outstanding at the end of the period (in dollars per share)	4.97	$ 4.97
Vested and expected to vest (in dollars per share)	4.97
Exercisable (in dollars per share)	$ 4.97
Weighted-Average Remaining Contractual Term (Years)
Outstanding	8 years 4 months 17 days	8 years 7 months 17 days
Vested and expected to vest	8 years 4 months 17 days
Exercisable	8 years 4 months 17 days
Aggregate Intrinsic Value
Outstanding	$ 242	$ 312
Vested and expected to vest	242
Exercisable	$ 242

Stock Compensation - RSUs (Details) - RSUs	3 Months Ended
Stock Compensation - RSUs (Details) - RSUs	Mar. 31, 2024 $ / shares shares
Number of RSUs
Outstanding at the beginning of period (in shares) \| shares	3,047,888
Granted (in shares) \| shares	3,295,225
Forfeited (in shares) \| shares	(18,754)
Vested (in shares) \| shares	(283,408)
Outstanding and unvested at the ending of period (in shares) \| shares	6,040,951
Weighted-Average Fair Value Per Share
Outstanding and at the beginning of period (in dollars per share) \| $ / shares	$ 4.69
Granted (in dollars per share) \| $ / shares	2.08
Forfeited (in dollars per share) \| $ / shares	4.31
Vested (in dollars per share) \| $ / shares	6.55
Outstanding and unvested at the at the end of the period (in dollars per share) \| $ / shares	$ 3.18

Stock Compensation - PBRSUs (Details) - Unvested PBRSUs	3 Months Ended
Stock Compensation - PBRSUs (Details) - Unvested PBRSUs	Mar. 31, 2024 $ / shares shares
Number of PBRSUs
Outstanding at the beginning of period (in shares) \| shares	160,275
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	(3,900)
Vested (in shares) \| shares	(156,375)
Outstanding and unvested at the ending of period (in shares) \| shares	0
Weighted-Average Fair Value Per Share
Outstanding and at the beginning of period (in dollars per share) \| $ / shares	$ 8.94
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	8.94
Vested (in dollars per share) \| $ / shares	8.94
Outstanding and unvested at the at the end of the period (in dollars per share) \| $ / shares	$ 0

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Provision for income taxes
Provision for income taxes	$ 0	$ 0

Stockholders' Deficit (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended		12 Months Ended
	Jan. 18, 2024	Mar. 22, 2023	Mar. 19, 2023	Feb. 23, 2023	Dec. 02, 2021	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 07, 2023	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)						32,344,212		36,344,212
Common stock, issued (in shares)						189,849,296		120,204,513
Common stock, par value (in dollars per share)						$ 0.001		$ 0.001
Issuance costs to additional paid in capital			$ 2,900
Proceeds from issuance of common stock, net of issuance costs						$ 90,672	$ 0
The Warrants
Subsidiary, Sale of Stock [Line Items]
Exercise price (in dollars per share)			$ 1.55
Pre Funded Warrant
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)						0
Fair value of warrants			$ 22,800
Warrants
Subsidiary, Sale of Stock [Line Items]
Warrants exercised (in shares)						4,000,000
Wainwright
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)					36,964,286
Exercise price (in dollars per share)					$ 9.00
Fair value of warrants					$ 61,900
Warrants expired (in shares)									27,940,074
Warrant Amendment Agreements
Subsidiary, Sale of Stock [Line Items]
Proceeds from stock offering, net		$ 55,500	1,200
Estimated offering expenses			$ 4,200
Total shares of common stock from exercisable warrants outstanding (in shares)						9,024,212		9,024,212
Exercise price (in dollars per share)		$ 1.55				$ 1.55				$ 9.00
Warrants issued for shares of common stock (in shares)			9,024,212
Additional consideration per amended warrant (in dollars per share)		$ 0.125
Proceeds from issuance of common stock, net of issuance costs			$ 51,300
Placement fees		$ 100
Proceeds from debt, net of issuance costs		$ 1,100
Securities Purchase Agreement
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)						23,320,000		27,320,000
Exercise price (in dollars per share)						$ 1.55
Common stock, issued (in shares)			12,205,000
Common stock purchasable under prefunded warrants (in shares)			20,965,747
Common stock purchasable under warrants (in shares)			33,170,747
Common stock, par value (in dollars per share)			$ 0.001
Securities Purchase Agreement \| Common Stock And Accompanying Warrant
Subsidiary, Sale of Stock [Line Items]
Purchase price (in dollars per share)			1.675
Securities Purchase Agreement \| Pre Funded Warrant And Accompanying Warrant
Subsidiary, Sale of Stock [Line Items]
Purchase price (in dollars per share)			$ 1.674
Commitment Offering
Subsidiary, Sale of Stock [Line Items]
Issued stock (in shares)	56,700,000
Price per share (in dollars per share)	$ 1.50
Proceeds from stock offering, net	$ 90,700
Estimated offering expenses	$ 7,100
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Issued stock (in shares)	8,505,000
Option period	30 days
At The Market Program
Subsidiary, Sale of Stock [Line Items]
Issued stock (in shares)						0	0	3,312,908
Proceeds from stock offering, net								$ 4,400
Aggregate offering price shares				$ 70,000
Payment of issuance costs								$ 400

Stockholders' Deficit - Summary of Warrants and Pre-funded Warrants Outstanding (Details) - $ / shares	Mar. 31, 2024	Dec. 31, 2023	Mar. 22, 2023	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)	32,344,212	36,344,212
Warrant Amendment Agreements
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)	9,024,212	9,024,212
Exercise price (in dollars per share)	$ 1.55		$ 1.55	$ 9.00
Securities Purchase Agreement
Subsidiary, Sale of Stock [Line Items]
Total shares of common stock from exercisable warrants outstanding (in shares)	23,320,000	27,320,000
Exercise price (in dollars per share)	$ 1.55

Net Income (Loss) Per Common Share - Calculation of Basic and Diluted (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net (Loss) Income Per Common Share
Net income (loss) - basic	$ 61,022	$ (61,719)
Adjustments for dilutive earnings per share:
Interest expense for convertible notes, less amortization of debt issuance costs	2,650	0
Net income (loss) - diluted	$ 63,672	$ (61,719)
Weighted-average shares outstanding - basic (in shares)	169,258,564	78,440,266
Effect of dilutive common stock equivalents:
Warrants for common stock (in shares)	11,713,131	0
Shares issuable upon conversion of convertible notes (in shares)	8,007,010	0
Dilutive common stock equivalents (in shares)	20,382,687	0
Weighted average shares - diluted (in shares)	189,641,251	78,440,266
Net income (loss) per common share - basic (in dollars per share)	$ 0.36	$ (0.79)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.34	$ (0.79)
Common shares under option
Effect of dilutive common stock equivalents:
Effect of dilutive common stock equivalents (in shares)	54,217	0
Common shares under PBSOs
Effect of dilutive common stock equivalents:
Effect of dilutive common stock equivalents (in shares)	55,678	0
Unvested RSUs
Effect of dilutive common stock equivalents:
Effect of dilutive common stock equivalents (in shares)	478,229	0
Unvested PBRSUs
Effect of dilutive common stock equivalents:
Effect of dilutive common stock equivalents (in shares)	74,422	0

Net Income (Loss) Per Common Share (Details) - shares	3 Months Ended
Net Income (Loss) Per Common Share (Details) - shares	Mar. 31, 2024	Mar. 31, 2023
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	7,866,758	86,292,792
Common shares under option
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	5,228,191	4,374,452
Common shares under PBSOs
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	433,950	433,950
Unvested RSUs
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	2,204,617	3,117,397
Unvested PBRSUs
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	0	191,375
Shares issuable related to the ESPP
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	0	33,575
Shares issuable upon conversion of convertible notes
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	0	8,007,010
Warrants
Net (Loss) Income Per Common Share
Total potential dilutive shares (in shares)	0	70,135,033