On Wednesday, Oppenheimer initiated coverage on shares of Xeris Pharmaceuticals (NASDAQ: NASDAQ:XERS), assigning an Outperform rating and setting a price target of $5.00. The firm's analysis suggests that Xeris Pharmaceuticals is on a strong path, with its portfolio of three specialty drug products expected to continue driving revenue growth.
Furthermore, the company's prudent spending is anticipated to lead to consistent profitability within the next two to three years.
The analyst at Oppenheimer highlighted the company's XeriJect formulation platform, which has already secured collaborations with biotech leaders such as Amgen (NASDAQ:AMGN) and Regeneron (NASDAQ:REGN). This platform is seen as a key player in the conversion of intravenous (IV) treatments to subcutaneous (SC) administration, offering notable advantages over competing technologies from Halozyme (NASDAQ:HALO).
The potential for this platform to foster additional industry partnerships was underscored as a significant growth driver for Xeris Pharmaceuticals.
Xeris Pharmaceuticals is also making strides in the endocrinology market, specifically targeting hypothyroidism management with its developmental drug XP-8121. Utilizing the company's proprietary XeriSol technology, XP-8121 aims to improve upon existing treatments for a condition that affects a large patient population.
The firm is optimistic about the upcoming Phase 2 data, expected to be released mid-year, which could validate the drug's market potential and spark increased investor interest.
The analyst's positive outlook is based on the belief that XP-8121 holds a sales opportunity exceeding $1 billion. This projection is contingent upon the drug's successful progression through clinical trials and eventual market acceptance. The upcoming data release is anticipated to be a pivotal moment for the company, potentially elevating its profile among investors.
In summary, Oppenheimer's initiation of coverage on Xeris Pharmaceuticals with an Outperform rating and a $5 stock price target reflects confidence in the company's commercial strategy, product pipeline, and technological platforms. The firm expects these elements to contribute significantly to the company's financial performance and market position in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.