On Wednesday, Oppenheimer maintained its Outperform rating on Xeris Pharmaceuticals (NASDAQ:XERS) with a steady price target of $5.00. The firm's confidence in the pharmaceutical company has been bolstered following meetings with the company's newly appointed CEO, John Shannon, and CFO, Steve Pieper.
These discussions have reinforced the firm's positive stance on the company's commercial execution and the advancement of its product XP-8121 toward a registration program.
The company's progress in expanding industry partnerships for its injectable drug formulation technology was also noted as a key factor in Oppenheimer's optimistic assessment. Despite the firm's recognition that Xeris Pharmaceuticals might not fit neatly into a typical biopharma investment profile, they anticipate that investors will be rewarded as the company nears profitability, projected by 2026.
The potential of XP-8121, which is being developed for the treatment of hypothyroidism and could represent an opportunity exceeding $1 billion, was highlighted as a significant aspect of the company's future success.
The stock has been on an upward trajectory since reaching its lows in April, and Oppenheimer views the shares as undervalued when considering the current state of the business.
In other recent news, Xeris Biopharma reported a significant 26% revenue increase for Q2 2024, achieving a total of $48.1 million. This surge can be attributed to the robust performance of the company's three main products, Recorlev, Gvoke, and Keveyis, which collectively generated over $46 million.
CEO John Shannon, leading Xeris Biopharma, has raised the company's revenue outlook for the year, emphasizing rapid commercial growth, financial discipline, and improved external communications.
Additionally, Xeris Biopharma has reported positive results from a Phase 2 study and announced a new partnership, further bolstering its pipeline. The company has also revised its total revenue guidance for the year, now expected to fall between $190 million and $200 million.
Despite a slight decrease in Keveyis net revenue due to generic competition, Recorlev and Gvoke have shown significant net revenue growth of 26% and 28% respectively.
These developments indicate a period of robust growth for Xeris Biopharma, with a focus on key products and strategic pipeline development, positioning the company on a positive trajectory in the pharmaceutical market.
InvestingPro Insights
Xeris Pharmaceuticals' (NASDAQ:XERS) recent performance aligns with Oppenheimer's optimistic outlook. According to InvestingPro data, the company has shown impressive revenue growth of 35.31% over the last twelve months as of Q2 2024, with quarterly revenue growth of 26.46% in Q2 2024. This robust growth supports Oppenheimer's positive stance on the company's commercial execution.
InvestingPro Tips highlight that Xeris has achieved a high return over the last year, with a strong 78.7% price total return over the past 12 months. The stock is also trading near its 52-week high, currently at 92.64% of that level, which corroborates the upward trajectory mentioned in the article.
However, it's important to note that despite the revenue growth, Xeris is not yet profitable, as indicated by another InvestingPro Tip. This aligns with Oppenheimer's projection of profitability by 2026. Investors considering Xeris should be aware that there are 7 additional InvestingPro Tips available, which could provide further insights into the company's financial health and market position.
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