Xeris Pharmaceuticals ((XERS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Xeris Pharmaceuticals’ recent earnings call painted a picture of robust financial health and promising growth prospects. The company reported a record-breaking quarter with significant revenue growth and increased demand for its key products, particularly Recorlev. Despite some challenges, such as increased expenses and a slight decline in gross margin, the overall sentiment was positive, with raised revenue guidance and a favorable adjusted EBITDA.
Record-Breaking Revenue and Growth
Xeris Pharmaceuticals achieved a remarkable 49% increase in total revenue, reaching a quarterly record of nearly $72 million. The commercial product portfolio also saw a substantial 46% growth, totaling approximately $68 million in the second quarter. This impressive performance underscores the company’s strong market position and effective business strategies.
Recorlev’s Significant Growth
Recorlev emerged as a standout performer, with its revenue surging by 136% year-over-year to over $31 million for the quarter. The average number of patients on Recorlev therapy grew by more than 122%, highlighting the product’s increasing acceptance and demand in the market.
Gvoke’s Consistent Growth
Gvoke continued its upward trajectory, posting a revenue of $23 million, marking a 17% increase compared to the same period last year. This growth was driven by an increase in prescribers and wider adoption of the product, further solidifying its market presence.
Keveyis’ Continued Strength
Keveyis contributed more than $11 million in revenue during the second quarter, with a modest increase in the average number of patients on therapy. This steady performance reflects the product’s ongoing relevance and demand.
Increased Revenue Guidance
Xeris Pharmaceuticals raised its full-year revenue guidance to a range of $280 million to $290 million, surpassing previous expectations. This revised guidance represents a 40% year-over-year growth at the midpoint, indicating the company’s confidence in its continued expansion and market penetration.
Positive Adjusted EBITDA
The company reported a positive adjusted EBITDA of $12.5 million for the quarter, showcasing an improvement of nearly $13 million compared to the previous year. This reflects Xeris’ strong operational efficiency and effective cost management.
Slight Drop in Gross Margin
The gross margin for the quarter was 82%, slightly lower than the first quarter due to expenses related to the expansion of Gvoke’s capacity. Despite this minor setback, the company’s overall financial health remains strong.
Increased R&D and SG&A Expenses
Xeris experienced a $2.2 million increase in research and development expenses compared to last year, alongside an 11% rise in selling, general, and administrative expenses. These investments are indicative of the company’s commitment to innovation and market expansion.
Forward-Looking Guidance
Looking ahead, Xeris Pharmaceuticals is focused on expanding Recorlev’s commercial footprint and advancing its pipeline, particularly with XP-8121, a potential transformative therapy for hypothyroidism. The company remains optimistic about its growth trajectory, supported by its revised revenue guidance and strategic initiatives.
In summary, Xeris Pharmaceuticals’ earnings call highlighted a strong quarter with record-breaking revenue growth and promising future prospects. The company’s key products, notably Recorlev, have shown significant demand and growth, contributing to the positive sentiment. With increased revenue guidance and strategic focus on expanding its product offerings, Xeris is well-positioned for continued success.