Xeris Biopharma Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Xeris Biopharma (Nasdaq: XERS) reported strong Q2 2024 financial results, with total revenue of $48.1M, including record product revenue of $46.5M. This represents an 18% increase over the prior quarter and a 26% increase year-over-year. The company tightened its full-year 2024 guidance, projecting total net revenue of $190M-$200M and a year-end cash balance of $60M-$75M.

Key highlights include:

• Gvoke revenue up 28% to $20.0M
• Recorlev revenue up 86% to $13.3M
• Keveyis revenue down 7% to $13.1M due to generic competition
• Cash position of $77.6M as of June 30, 2024
• Net loss of $15.0M for Q2 2024

The company also announced leadership changes, with John Shannon appointed as CEO and Kevin McCulloch promoted to President and COO.

Positive

• Record product revenue of $46.5M, a 26% increase year-over-year
• Total revenue growth of 18% over the prior quarter
• Gvoke revenue increased by 28% to $20.0M
• Recorlev revenue grew by 86% to $13.3M
• Tightened full-year 2024 guidance to $190M-$200M in total net revenue
• Strong cash position of $77.6M at the end of Q2 2024
• Positive topline results from Phase 2 study of XP-8121 for hypothyroidism treatment

Negative

• Keveyis revenue decreased by 7% to $13.1M due to generic competition
• Net loss of $15.0M for Q2 2024
• Increased SG&A expenses by $2.4M for Q2 and $7.1M for H1 2024

Insights

Financial Analyst

Xeris Biopharma's Q2 2024 results show strong growth, with total revenue reaching $48.1 million, a 26% increase year-over-year. The company's product revenue hit a record $46.5 million, driven by robust demand across its portfolio. Gvoke and Recorlev performed exceptionally well, with 28.2% and 86.1% growth respectively, while Keveyis faced challenges due to generic competition.

The company's tightened full-year guidance of $190-200 million in total net revenue and a year-end cash balance of $60-75 million indicates confidence in continued growth. However, Xeris still reported a net loss of $15 million for Q2, highlighting the need for further improvement in profitability. The cash position of $77.6 million provides a solid runway for near-term operations and pipeline development.

Medical Research Analyst

Xeris' diverse product portfolio addresses significant unmet medical needs. Gvoke, for hypoglycemia, has captured a 34% share of the retail TRx glucagon market, indicating strong adoption. Recorlev, for Cushing's syndrome, shows impressive growth with a 124% increase in average patient numbers year-over-year. The positive Phase 2 results for XP-8121 (XeriSol™ levothyroxine) in hypothyroidism treatment are promising, potentially expanding Xeris' reach in endocrinology. The collaboration with Beta Bionics for a glucagon product in bi-hormonal pump systems could be a game-changer in diabetes management, leveraging Xeris' XeriSol™ technology.

Market Research Analyst

Xeris' market positioning is strengthening, particularly in the glucagon and Cushing's syndrome segments. The consistent 20%+ year-over-year growth for eleven consecutive quarters demonstrates the company's ability to execute its commercial strategy effectively. The appointment of John Shannon as CEO and Kevin McCulloch as President and COO suggests a smooth leadership transition, which could maintain operational momentum. However, investors should monitor the impact of generic competition on Keveyis sales and the company's ability to offset this with growth in other products. The upcoming investor conferences provide opportunities for Xeris to showcase its growth strategy and pipeline potential to the investment community.

Achieved revenue of $48.1M including record product revenue of $46.5M

Total revenues increased 18% over the prior quarter and 26% over the same period prior year

Ended Q2 with $77.6M in cash, cash equivalents and short-term investments

Tightens full-year 2024 guidance: total net revenue to $190M-$200M and year-end cash balance to $60M-$75M

John Shannon appointed CEO and Kevin McCulloch promoted to President and COO per the Company’s long-standing succession plan

Hosting conference call and webcast today at 8:30 a.m. ET

CHICAGO--(BUSINESS WIRE)-- Xeris Biopharma Holdings, Inc. (Nasdaq: XERS), a fast-growing biopharmaceutical company committed to improving patient lives by developing and commercializing innovative products across a range of therapies, today announced financial results for the second quarter and six months ended June 30, 2024 and recent corporate events.

“I am very pleased to report that we posted an outstanding quarter of $48 million in total revenue, which included record product revenue of over $46 million driven by strong demand for all three of our products. Our year-over-year product revenue growth of 26% represents the eleventh consecutive quarter of over 20% growth as our diverse product portfolio of Recorlev^®, Gvoke^®, and Keveyis^® all continue to meet important unmet needs for patients,” said John Shannon, CEO of Xeris Biopharma. “Our strong performance leads us to now envision full year results at the high end of our original range, and we’re tightening our guidance to $190-$200 million from the previous $175-$200 million. We also believe that this performance will enable us to perform at the higher end of our year-end cash range, so we’re tightening that guidance to $60-$75 million.” Mr. Shannon continued, “This is an exciting time for Xeris, and I’m thrilled to be leading as CEO for the next phase of our journey building upon the strong foundation we’ve created to drive our revenues and pipeline to new heights.”

Second Quarter 2024 Highlights

	Three Months Ended June 30,						Change
	2024			2023			$			%
Product revenue (in thousands):
Gvoke	$	20,046		$	15,638		$	4,408		28.2
Keveyis		13,128			14,088			(960	)	(6.8	)
Recorlev		13,338			7,167			6,171		86.1
Product revenue, net		46,512			36,893			9,619		26.1
Royalty, contract and other revenue		1,553			1,115			438		39.3
Total revenue	$	48,065		$	38,008		$	10,057		26.5

Commercial Products

• Gvoke^®: Second quarter net revenue was $20.0 million as compared to $15.6 million in the second quarter of 2023 – an increase of approximately 28%. Gvoke prescriptions topped 65,000 for the first time, growing 27% compared to the same period in 2023. Gvoke’s share of the retail TRx glucagon market grew to approximately 34% at the end of July.
• Keveyis^®: Second quarter net revenue was $13.1 million as compared to $14.1 million in the second quarter of 2023 - a decrease of approximately 7% due to generic competition. Net revenue was unchanged from the first quarter of 2024.
• Recorlev^®: Second quarter net revenue was $13.3 million – an increase of 86% compared to the second quarter of 2023. The average number of patients on Recorlev increased 124% from the same period in 2023.

Technologies Programs

• XeriSol™ levothyroxine (XP-8121): In May, Xeris announced positive topline results from its Phase 2 multi-center, open label, study of XP-8121 for the treatment of adults with hypothyroidism. The Company anticipates an end-of-Phase 2 meeting with the FDA before year-end.
• XeriSol™ glucagon for pumps: In May, Xeris entered into an exclusive worldwide collaboration and license agreement with Beta Bionics, Inc. for the development and commercialization of a unique glucagon product for use in Beta Bionics’ proprietary bi-hormonal pump and pump systems.

Year-to-Date 2024 Financial Results

	Six Months Ended June 30,						Change
	2024			2023			$			%
Product revenue (in thousands):
Gvoke	$	36,625		$	30,671		$	5,954		19.4
Keveyis		26,213			26,843			(630	)	(2.3	)
Recorlev		23,937			11,644			12,293		105.6
Product revenue, net		86,775			69,158			17,617		25.5
Royalty, contract and other revenue		1,928			2,046			(118	)	(5.8	)
Total revenue	$	88,703		$	71,204		$	17,499		24.6

• Gvoke^®: Net revenue was $36.6 million for the six months ended June 30, 2024, a 19% increase compared to prior year. Gvoke prescriptions for the first half of 2024 were approximately 124,000 TRx’s, growing approximately 27% compared to the same period in 2023.
• Keveyis^®: Net revenue was $26.2 million for the six months ended June 30, 2024, a 2% decrease from last year due to generic competition.
• Recorlev^®: Net revenue was $24.0 million for the six months ended June 30,2024, a 106 % increase from last year, driven primarily by increases in the number of patients on therapy.

Cost of goods sold remained relatively flat for the three months ended June 30, 2024 compared to the same period ended June 30, 2023. Cost of goods sold increased by $0.9 million for the six months ended June 30, 2024 compared to the same period ended June 30, 2023. The slight increase was attributable to higher product sales, partially offset by favorable product mix driven by higher sales of products with lower cost of goods sold.

Research and development (R&D) expenses decreased slightly by $0.3 million for the three months ended June 30, 2024. For six months ended June 30, 2024, R&D increased by $2.7 million primarily due to higher spending for our pipeline and personnel related expenses.

Selling, general and administrative (SG&A) expenses increased by $2.4 million and $7.1 million for the three and six months ended 2024, respectively, compared to the same periods ended June 30, 2023, due to higher personnel costs.

Net Loss for the three months ended June 30, 2024, was $15.0 million, or $0.10 per share, and a net loss of $34.0 million, or $0.24 per share, for the six months ended June 30, 2024.

Cash, cash equivalents, and short-term investments at June 30, 2024 was $77.6 million compared to $72.5 million at December 31, 2023. Total shares outstanding at July 31, 2024 was 148,998,825.

Upcoming Investor Conferences

Members of the senior management team will be participating in the following investor conferences:

• Wells Fargo Healthcare Conference, September 4-6, 2024
• HC Wainwright Global Investor Conference, September 9-11, 2024
• Cantor Global Healthcare Conference, September 17-19, 2024

Please check with each conference sponsor to arrange 1x1 meetings.

Conference Call and Webcast Details

Xeris will host a conference call and webcast today at 8:30 a.m. Eastern Time to discuss the Company’s financial and operational results.

To pre-register for the call, please go to the following link: https://www.netroadshow.com/events/login?show=44e9222b&confId=68537 After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. The Company recommends registering a minimum of ten minutes prior to the start of the call. Following the conference call, a replay will be available until Thursday, August 22, 2024 at US:1 929 458 6194, US Toll Free: 1 866 813 9403, UK: 0204 525 0658, Canada: 1 226 828 7578, or all other locations: +44 204 525 0658 Access Code: 840547

To join the webcast, please visit “Events” on investor relations page of the Company’s website at www.xerispharma.com or use this link: https://events.q4inc.com/attendee/670337574

About Xeris

Xeris (Nasdaq: XERS) is a growth-oriented biopharmaceutical company committed to improving patient lives by developing and commercializing innovative products across a range of therapies. Xeris has three commercially available products; Gvoke^®, a ready-to-use liquid glucagon for the treatment of severe hypoglycemia, Keveyis^®, a proven therapy for primary periodic paralysis, and Recorlev^® for the treatment of endogenous Cushing’s syndrome. Xeris also has a robust pipeline of development programs to extend the current marketed products into important new indications and uses and bring new products forward using its proprietary formulation technology platforms, XeriSol™ and XeriJect^®, supporting long-term product development and commercial success.

Xeris Biopharma Holdings is headquartered in Chicago, IL. For more information, visit www.xerispharma.com, or follow us on X, LinkedIn, or Instagram.

Forward-Looking Statements

Any statements in this press release other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, statements about future expectations, plans and prospects for Xeris Biopharma Holdings, Inc. including statements regarding the financial outlook for 2024, including projections regarding year-end 2024 cash estimates and total revenue, the potential for growth of revenue, the market and therapeutic potential of its products and product candidates, the potential utility of its formulation platforms, the expected timing of an end-of-Phase 2 meeting with the FDA, its attendance at investor conferences, the composition of its executive team, and other statements containing the words “will,” “would,” “continue,” “expect,” “should,” “anticipate” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on numerous assumptions and assessments made in light of Xeris’ experience and perception of historical trends, current conditions, business strategies, operating environment, future developments, geopolitical factors and other factors it believes appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. The various factors that could cause Xeris’ actual results, performance or achievements, industry results and developments to differ materially from those expressed in or implied by such forward-looking statements, include, but are not limited to, its financial position and need for financing, including to fund its product development programs or commercialization efforts, whether its products will achieve and maintain market acceptance in a competitive business environment, its reliance on third-party suppliers, including single-source suppliers, its reliance on third parties to conduct clinical trials, the ability of its product candidates to compete successfully with existing and new drugs, and its and collaborators’ ability to protect its intellectual property and proprietary technology. No assurance can be given that such expectations will be realized and persons reading this communication are, therefore, cautioned not to place undue reliance on these forward-looking statements. Additional risks and information about potential impacts of financial, operational, economic, competitive, regulatory, governmental, technological, and other factors that may affect Xeris can be found in Xeris’ filings, including its most recently filed Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, the contents of which are not incorporated by reference into, nor do they form part of, this communication. Forward-looking statements in this communication are based on information available to us, as of the date of this communication and, while we believe our assumptions are reasonable, actual results may differ materially. Subject to any obligations under applicable law, we do not undertake any obligation to update any forward-looking statement whether as a result of new information, future developments or otherwise, or to conform any forward-looking statement to actual results, future events, or to changes in expectations.

XERIS BIOPHARMA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
Product revenue, net	$	46,512			$	36,893			$	86,775			$	69,158
Royalty, contract and other revenue		1,553				1,115				1,928				2,046
Total revenue		48,065				38,008				88,703				71,204
Costs and expenses:
Cost of goods sold		7,790				7,555				13,761				12,874
Research and development		5,759				6,087				13,580				10,925
Selling, general and administrative		39,993				37,635				78,373				71,240
Amortization of intangible assets		2,710				2,710				5,421				5,421
Total costs and expenses		56,252				53,987				111,135				100,460
Loss from operations		(8,187	)			(15,979	)			(22,432	)			(29,256	)
Other expense		(6,069	)			(4,538	)			(10,497	)			(8,095	)
Net loss before benefit from income taxes		(14,256	)			(20,517	)			(32,929	)			(37,351	)
Income tax (expense) benefit		(749	)			675				(1,056	)			675
Net loss	$	(15,005	)		$	(19,842	)		$	(33,985	)		$	(36,676	)
Net loss per common share - basic and diluted	$	(0.10	)		$	(0.14	)		$	(0.24	)		$	(0.27	)
Weighted average common shares outstanding - basic and diluted		148,345,549				137,338,071				144,372,512				137,250,465

XERIS BIOPHARMA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	June 30, 2024				December 31, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	57,604			$	67,449
Short-term investments		19,964				5,002
Trade accounts receivable, net		42,440				39,197
Inventory		42,977				38,838
Prepaid expenses and other current assets		7,355				5,778
Total current assets		170,340				156,264
Property and equipment, net		5,833				5,971
Intangible assets, net		104,343				109,764
Goodwill		22,859				22,859
Operating lease right-of-use assets		22,864				23,204
Other assets		5,494				4,540
Total assets	$	331,733			$	322,602
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,798			$	11,565
Current operating lease liabilities		5,307				3,495
Other accrued liabilities		23,494				23,510
Accrued trade discounts and rebates		23,275				22,149
Accrued returns reserve		16,197				14,198
Current portion of contingent value rights		420				19,109
Other current liabilities		997				1,167
Total current liabilities		75,488				95,193
Long-term debt, net of unamortized debt issuance costs		230,481				190,932
Non-current contingent value rights		—				1,379
Non-current operating lease liabilities		34,016				34,764
Deferred tax liabilities		3,324				2,268
Other liabilities		7,710				4,848
Total liabilities		351,019				329,384
Total stockholders’ equity (deficit)		(19,286	)			(6,782	)
Total liabilities and stockholders’ equity (deficit)	$	331,733			$	322,602

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808523637/en/

Allison Wey

Senior Vice President, Investor Relations and Corporate Communications

awey@xerispharma.com

312-736-1237

Source: Xeris Biopharma Holdings, Inc.

FAQ

What was Xeris Biopharma's (XERS) total revenue for Q2 2024?

Xeris Biopharma's total revenue for Q2 2024 was $48.1 million, including record product revenue of $46.5 million.

How much did Xeris Biopharma's (XERS) Gvoke revenue grow in Q2 2024?

Xeris Biopharma's Gvoke revenue grew by 28% to $20.0 million in Q2 2024 compared to the same period in 2023.

What is Xeris Biopharma's (XERS) updated full-year 2024 revenue guidance?

Xeris Biopharma tightened its full-year 2024 guidance, projecting total net revenue of $190 million to $200 million.

How much cash did Xeris Biopharma (XERS) have at the end of Q2 2024?

Xeris Biopharma had $77.6 million in cash, cash equivalents, and short-term investments at the end of Q2 2024.

What was Xeris Biopharma's (XERS) net loss for Q2 2024?

Xeris Biopharma reported a net loss of $15.0 million, or $0.10 per share, for Q2 2024.