Biotech Values

[DewDiligence]

ESPR—(-67%/AH)—stiffed by Daiichi Sankyo on milestone payment:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001434868/000110465923032800/tm239671d1_8k.htm

The Company has had communications with Daiichi Sankyo Europe (DSE) regarding potential milestone payments in which DSE has conveyed that it disagrees with the Company’s assessment that the CLEAR Outcomes data would support the Company’s right to receive any milestone payments upon inclusion of certain required cardiovascular risk reduction data in the EU label, because the CLEAR Outcomes study showed a 12.98% reduction in MACE-4, the primary endpoint of the trial. The Company strongly disagrees and continues to believe that, pursuant to Section 9.2 of the Company's license and collaboration agreement with DSE, which refers only to cardiovascular risk reduction and not to any primary endpoint, it would be entitled to receive such 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 CLEAR Outcomes trial demonstrating a significant reduction of fatal and non-fatal myocardial infarction by 23%. If necessary, the Company intends to enforce its contractual rights and seek the milestone payments it believes it is entitled to.

The $300M milestone payment to which ESPR claims to be entitled represented the majority of ESPR’s enterprise value prior to this news!

Daiichi Sankyo has a pretty good case, IMO.