Xeris Biopharma Holdings, Inc. (XERS) reported strong financial results for the first quarter of 2024, with total revenue increasing 22% year-over-year to $40.6 million. The company's net loss for the year ended December 31, 2023 was $62.3 million, while annual revenue was $163.9 million. Operating cash flow for the year was -$48.2 million, and free cash flow was -$50.5 million.
Financials
In the first quarter of 2024, Xeris' net product revenue grew 25% year-over-year to $40.3 million, driven by strong performance across its three commercial products - Gvoke, Recorlev, and Keveyis. Recorlev revenue surged
137%
to $10.6 million, Keveyis revenue increased3%
to $13.1 million, and Gvoke revenue rose10%
to $16.6 million.Recorlev Performance
The company's Recorlev brand continues to gain momentum, with the average number of patients on the drug increasing
139%
year-over-year and18%
sequentially. Xeris attributes this growth to a consistently increasing pipeline of patient referrals, which grew93%
year-over-year and10%
sequentially. To support Recorlev's growth, the company plans to add more field and patient support resources this year.Keveyis Performance
Keveyis also demonstrated resilience in the face of generic competition, with revenue beating Xeris' internal estimates. The company's strategy to invest in Keveyis and defend the brand continues to pay off, as patient referrals increased
27%
year-over-year and35%
sequentially.Gvoke Performance
Gvoke's performance was impacted by a temporary issue related to a cybersecurity breach at Change Healthcare, a major prescription claims processor. Xeris estimates this event had a $3 million negative impact on Gvoke's net sales in the first quarter. However, the company believes the effects of this disruption will be largely resolved by the end of the second quarter, and it is seeing strong demand for Gvoke, with prescriptions exceeding 5,000 in the most recent weekly data.
Business Overview
Xeris' proprietary formulation platforms, XeriSol and XeriJect, continue to drive new partnerships and enhance the company's product pipeline. In the first quarter, the company announced an exclusive worldwide collaboration and license agreement with Beta Bionics for the development and commercialization of a new XeriSol-based formulation of liquid stable glucagon for use in bi-hormonal pumps or pump systems. Additionally, Amgen executed an exclusive license agreement to develop, manufacture, and commercialize a subcutaneous formulation of teprotumumab using Xeris' XeriJect technology for the treatment of thyroid eye disease.
The company's internal pipeline also saw progress, with the successful completion of a Phase 2 clinical study for its once-weekly subcutaneous levothyroxine product, XP-8121. Xeris plans to request an end-of-Phase 2 meeting with the FDA later this year to discuss the path forward for a pivotal Phase 3 program.
Outlook
Given the strong performance across its commercial products and the continued advancement of its pipeline and partnerships, Xeris has tightened its full-year 2024 total revenue guidance, raising the low end of the range from $170 million to $175 million. The company now expects total revenue for 2024 to be in the range of $175 million to $200 million.
Liquidity
Xeris' balance sheet remains strong, with $87.4 million in cash at the end of the first quarter, which includes net proceeds of approximately $35 million from the Hayfin term loan refinancing. The company maintains its previous guidance of ending 2024 with $55 million to $75 million in cash, as it plans to make incremental investments in its commercial business, technology partnerships, and internal pipeline.
Conclusion
In summary, Xeris Biopharma delivered an impressive first quarter, with strong revenue growth across its commercial portfolio and continued progress in its technology partnerships and pipeline. The company's tightened full-year guidance reflects its confidence in sustaining this momentum and building a healthy, self-sustaining enterprise.