FDA Removes Partial Clinical Hold For Esperion's Drug For Bad Cholesterol

Esperion Therapeutics (ESPR) surged as high as 20% in today's trading session after the company announced that it had received notice from the FDA that the partial clinical hold had been removed for their drug candidate ECT-1002. The removal of the hold relates to the peroxisome proliferator-activated receptor (PPAR) clinical hold.  Esperion  is a biotechnology company focused on creating treatments for cardiometabolic risk factors. Primarily the company has an advanced drug candidate, ECT-1002, that treats low-density lipoprotein cholesterol, or LDL-C. The ECT-1002 drug works by inhibiting ATP citrate lysase -- ACL -- which is a key enzyme in the cholesterol pathway. By reducing this enzyme the company can lower a patient's LDL-C levels dramatically.

The key thing to note is that some LDL-C isn't necessarily a bad thing; the problem is that too much bad cholesterol can cause many types of problems for the body. Such problems include: buildup of cholesterol on the walls of arteries, plaque buildup on the arteries, and the blocking of the arteries. All these risk factors increase the chance for a stroke, therefore it is imperative that patients keep their LDL-C levels under control. Such a drug from Esperion will help achieve the ability to reduce LDL-C from the body but at the same time be a safer alternative to other FDA approved therapies. This means that ECT-1022 is safer to take with fewer side effects than other approved therapies, which is a key advantage when being marketed against competitors. The Company's drug ECT-1002 is a once a day oral pill that allows for reduced side effects along with the fact that it allows patients with statin intolerance to take an LDL-C level lowering drug.

Esperion Therapeutics is quickly moving the ECT-1002 drug therapy through phase 3 trials later this in 2015. This removal of the partial clinical hold removes some risk from this company and allows the company to enhance shareholder value. There are about 71 million American adults who have high LDL-C levels. Esperion Therapeutics is a good biotech stock to own for the long term investors and the company continues to produce good results in targeting these cardiometabolic diseases. Pending further future positive results the company remains on track to target a large market opportunity.