8-K: Xeris Biopharma Reports 22% Revenue Growth in Q1 2024, Tightens Full-Year Guidance

Xeris Biopharma announced a 22% increase in total revenue for the first quarter of 2024, reaching $40.6 million, and tightened its full-year revenue guidance to $175-$200 million.

Summary

• Xeris Biopharma reported a 22% increase in total revenue for Q1 2024, reaching $40.6 million, compared to $33.2 million in Q1 2023.
• Product revenue grew by 25% year-over-year, driven by strong sales of Recorlev, Keveyis, and Gvoke.
• Gvoke revenue was impacted by an estimated $3 million due to the Change Healthcare cyberattack.
• The company tightened its full-year 2024 total revenue guidance to $175 million to $200 million.
• Xeris ended Q1 with $87.4 million in cash, cash equivalents, and short-term investments.
• The company lowered the borrowing rate on its Hayfin debt by 2.05%.
• Xeris entered into a worldwide license agreement for XeriJect formulation of teprotumumab with Amgen, potentially receiving $75 million in milestones and royalties.
• An exclusive worldwide agreement was also announced with Beta Bionics for a new XeriSol formulation of glucagon for bi-hormonal pumps.
• Net loss for the quarter was $19.0 million, or $0.14 per share.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook with strong revenue growth and strategic partnerships, but the net loss and increased expenses temper the overall sentiment. The tightening of revenue guidance is a positive sign of management confidence.

Positives

• Xeris experienced strong revenue growth across its product portfolio.
• Recorlev sales showed exceptional growth, indicating strong market adoption.
• Gvoke's market share continues to expand, despite a cyberattack impact.
• The company has secured significant partnerships for its XeriJect and XeriSol technologies.
• Xeris has a solid cash position of $87.4 million.
• The borrowing rate on the Hayfin debt was lowered by 2.05%.
• Keveyis patient referrals remained strong with lower patient loss than anticipated.

Negatives

• Gvoke revenue was negatively impacted by an estimated $3 million due to the Change Healthcare cyberattack.
• The company reported a net loss of $19.0 million for the quarter.
• Research and development expenses increased by $3.0 million compared to the same period in 2023.
• Selling, general and administrative expenses increased by $4.8 million compared to the same period in 2023.

Risks

• The company's financial position and need for financing could impact its product development programs and commercialization efforts.
• There is a risk that products may not achieve and maintain market acceptance in a competitive environment.
• The company relies on third-party suppliers, including single-source suppliers, which could pose a risk.
• The company relies on third parties to conduct clinical trials, which could lead to delays.
• There is a risk that product candidates may not compete successfully with existing and new drugs.
• The company's ability to protect its intellectual property and proprietary technology is a risk.

Future Outlook

Xeris has tightened its full-year 2024 total revenue guidance to $175 million to $200 million and anticipates continued growth driven by its commercial products and technology partnerships. The company expects to release Phase 2 clinical study data for XeriSol levothyroxine (XP-8121) in mid-2024.

Management Comments

• Paul R. Edick, Xeris Chairman and CEO, stated that the company grew total product revenue 25% in the first quarter compared to last year, despite an estimated $3 million negative impact to Gvoke revenue from the Change Healthcare cyberattack.
• Paul R. Edick also mentioned that with these results, a strong start to the second quarter along with their new technology partnership with Beta Bionics, they are confident in tightening their 2024 total revenue guidance to $175 million to $200 million.

Industry Context

The announcement reflects a positive trend in the biopharmaceutical industry, with Xeris leveraging its proprietary technology platforms to expand its product portfolio and secure strategic partnerships. The company's focus on innovative formulations and commercialization strategies aligns with the industry's push for improved patient outcomes and market growth.

Comparison to Industry Standards

• Xeris's 22% revenue growth in Q1 2024 is strong compared to many established pharmaceutical companies, which often see single-digit growth rates.
• The 136.7% growth in Recorlev sales is particularly impressive, suggesting a successful market launch and strong demand for the product, which is a positive sign compared to other companies launching new drugs.
• The partnership with Amgen for XeriJect technology is similar to other biotech companies licensing their technology to larger players for commercialization, which is a common strategy to monetize innovation.
• The collaboration with Beta Bionics for a new glucagon formulation is a strategic move to expand into the diabetes market, which is a competitive space with companies like Novo Nordisk and Eli Lilly.
• The company's cash position of $87.4 million is adequate for a company of its size, but it will need to manage its expenses carefully to ensure it has enough capital to fund its growth initiatives.

Stakeholder Impact

• Shareholders will likely view the revenue growth and strategic partnerships positively.
• Employees may benefit from the company's growth and expansion.
• Patients will have access to new and improved therapies.
• Suppliers and partners will benefit from increased business opportunities.
• Creditors will be reassured by the company's improved financial performance.

Next Steps

• Xeris will continue to focus on commercializing its existing products.
• The company will advance its pipeline programs, including XeriSol levothyroxine (XP-8121).
• Xeris will work with its partners to develop and commercialize new products using its XeriSol and XeriJect technologies.
• The company will monitor the impact of the Change Healthcare cyberattack on Gvoke revenue.
• Xeris will host a conference call and webcast to discuss the results.

Key Dates

Keywords

Xeris Biopharma, Revenue Growth, Biopharmaceutical, Gvoke, Keveyis, Recorlev, XeriSol, XeriJect, Partnership, Glucagon, Teprotumumab, Financial Results