Esperion Therapeutics has reached a deal with Daiichi Sankyo to resolve a commercial dispute with an amendment to their ongoing collaboration.
Daiichi Sankyo Europe GmbH, the company’s European arm, agreed to pay Esperion $100 million ahead of an expected Type II(a) variation approval by the European Medicines Agency for a pair of drugs, NILEMDO and NUSTENDI.
Following the EMA decision, Daiichi will pay Esperion another $25 million.
In turn, Esperion will shift manufacturing and supply responsibilities to Daiichi in Europe and elsewhere, which is expected to generate major cost savings.
“We are pleased that this settlement creates value for Esperion today through cash payments and includes additional terms that will continue creating value for both companies going forward,” Esperion CEO Sheldon Koenig said in a statement.
“Importantly, today’s settlement allows Esperion and DSE to focus on the business at hand – delivering life-saving drug therapies to millions with high cholesterol. Together, we are committed to making bempedoic acid a blockbuster franchise worldwide, based on the differentiating profiles of our products.”
Crucially, the agreement between the parties will see the legal action pending in US District Court be dismissed.
Investors, though, seemed to feel differently. Shares of Esperion swooned more than 20% Wednesday afternoon, while Daiichi stock slid 0.5%.