Xeris Biopharma Holdings Inc (XERS, Financial) released its 8-K filing on November 8, 2024, showcasing a robust financial performance for the third quarter of 2024. The biopharmaceutical company, known for its innovative therapies in endocrinology, neurology, and gastroenterology, reported record total revenue of $54.3 million, surpassing analyst estimates of $51.43 million. However, the company faced challenges with a net loss of $15.7 million, translating to a loss per share of $0.11, which was above the estimated loss of $0.09 per share.
Company Overview and Product Performance
Xeris Biopharma Holdings Inc is a biopharmaceutical company focused on developing and commercializing unique therapies. The company markets three products: Gvoke, Keveyis, and Recorlev, each catering to specific medical needs. The third quarter saw significant growth in product revenue, particularly for Recorlev, which increased by 119% year-over-year, driven by a 125% rise in patient numbers. Gvoke also performed well, with a 29% increase in revenue, while Keveyis experienced a decline due to reduced patient numbers.
Financial Achievements and Industry Impact
The company's financial achievements are noteworthy in the biotechnology sector, where innovation and market penetration are critical. Xeris reported a 27% increase in product revenue compared to the previous year, marking the 12th consecutive quarter of over 20% growth. This consistent growth underscores the company's successful market strategies and product acceptance.
Key Financial Metrics and Analysis
From the income statement, Xeris reported total revenue of $54.3 million for Q3 2024, a 12.3% increase from the previous year. The cost of goods sold rose to $13.6 million, primarily due to manufacturing changes for Gvoke. Operating expenses remained stable, excluding non-routine charges, reflecting efficient cost management.
| Product | Q3 2024 Revenue ($M) | Q3 2023 Revenue ($M) | Change (%) |
|---|---|---|---|
| Gvoke | 22.9 | 17.7 | 29.4 |
| Recorlev | 17.7 | 8.1 | 118.9 |
| Keveyis | 12.2 | 15.9 | -23.1 |
Balance Sheet and Cash Flow Insights
As of September 30, 2024, Xeris held $69.4 million in cash, cash equivalents, and short-term investments, slightly down from $72.5 million at the end of 2023. The company's total assets stood at $321.1 million, with liabilities totaling $349.4 million, resulting in a stockholders' equity deficit of $28.3 million. This financial position highlights the need for careful cash management and strategic investments to sustain growth.
Commentary and Future Outlook
“We are proud to report our record-breaking quarter with total revenue of our $54 million led by strong demand of Recorlev® and Gvoke®. Our product revenue growth of 27% marks the 12th consecutive quarter of over 20% growth," said John Shannon, CEO of Xeris.
“While delivering exceptional revenue growth, we held our total operating expenses relatively flat to last quarter when you exclude non-routine charges,” said Steven Pieper, CFO of Xeris.
Xeris Biopharma Holdings Inc's performance in Q3 2024 demonstrates its ability to drive revenue growth through strategic product investments and market expansion. However, the company must address its net loss and equity deficit to ensure long-term financial stability. The raised full-year revenue guidance to $198-$202 million reflects confidence in continued growth, supported by a robust product pipeline and market demand.
Explore the complete 8-K earnings release (here) from Xeris Biopharma Holdings Inc for further details.
