Xeris Biopharma Holdings Inc (XERS) Reports Substantial Revenue Growth in Q3 2023

Financial Highlights Reflect Strong Sales and Progress Towards Cash Flow Breakeven

  • Record Q3 revenue of $48.3 million, marking a 62.6% increase year-over-year.
  • Full-year 2023 revenue guidance tightened to $160 million - $165 million.
  • Net loss narrowed to $12.2 million in Q3, with cash flow breakeven anticipated in Q4.
  • Extended maturity of convertible notes and advanced pipeline programs.
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On November 9, 2023, Xeris Biopharma Holdings Inc (XERS, Financial) released its financial results for the third quarter, showcasing a significant increase in revenue and a positive outlook for the remainder of the year. The company reported a record revenue of $48.3 million for Q3, a 27% increase from the previous quarter and a 63% increase from the same period in the prior year. This performance has led Xeris Biopharma to tighten its full-year 2023 revenue guidance from the initial $155 million - $165 million to a more precise range of $160 million - $165 million.

Performance and Financial Achievements

Xeris Biopharma's product revenue for Q3 2023 saw significant increases across its portfolio. Gvoke® revenue rose by approximately 30% to $17.7 million, Keveyis® by 19% to $15.9 million, and Recorlev® saw a remarkable increase from $2.5 million in Q3 2022 to $8.1 million in Q3 2023. The company also recognized $6.0 million in milestone payments from a collaboration agreement, contributing to the total revenue growth.

Year-to-date, the company's total revenue reached $119.5 million, a 55% increase from the same period in 2022. This was driven by a 44.5% increase in product revenue net and a significant rise in royalty, contract, and other revenue.

Income Statement and Balance Sheet Summary

Cost of goods sold increased in line with higher product sales, while research and development expenses decreased by $1.0 million in Q3 due to lower product development costs. Selling, general, and administrative expenses rose by $2.8 million in Q3, attributed to higher personnel costs and rent expenses related to a new lease commenced in April 2023.

The net loss for Q3 was $12.2 million, or $0.09 per share, an improvement from the net loss of $21.8 million, or $0.16 per share, in the same quarter of the previous year. The company's cash, cash equivalents, and short-term investments totaled $66.0 million as of September 30, 2023, compared to $122.0 million at the end of 2022.

Corporate Highlights and Future Outlook

Xeris Biopharma's management remains confident in achieving cash flow breakeven in the fourth quarter, citing disciplined expense management and robust revenue growth. The company has also extended the maturity of approximately two-thirds of its 2025 Convertible Senior Notes to 2028, improving its financial flexibility.

In terms of its pipeline, Xeris Biopharma has made progress with its XeriSol® levothyroxine (XP-8121) Phase 2 clinical study, which is over 85% enrolled and expected to be completed in the first half of 2024. The company's technology partnerships are also advancing, with a successful formulation of the XeriJect™ formulation of TEPEZZA® triggering a $6.0 million milestone payment.

Xeris Biopharma is actively participating in investor conferences and has a conference call and webcast scheduled to discuss these results and provide further insights into the company's strategy and outlook.

For value investors and potential GuruFocus.com members, Xeris Biopharma Holdings Inc (XERS, Financial) presents an interesting case of a biopharmaceutical company on a growth trajectory, with a strong commercial portfolio and promising pipeline developments. The company's financial results indicate a solid performance and a strategic approach to achieving long-term sustainability and profitability.

Explore the complete 8-K earnings release (here) from Xeris Biopharma Holdings Inc for further details.