Xeris Biopharma (XERS), a fast-growing biopharmaceutical company, beat top and bottom-line expectations for Q4 and announced it is expecting over 30% revenue growth in 2025. The company anticipates the strong upside potential of XP8121, a treatment for hypothyroidism. The news has sparked investor sentiment, driving the stock up over 22% in the past few days.
A Promising Pipeline
Xeris Biopharma’s main objective is to develop and bring to market novel therapies specifically tailored to treat conditions like hypoglycemia and endogenous Cushing’s syndrome.
Last year (2024), Xeris exceeded its full-year guidance with a total revenue increase of 24% from the previous year, driven by demand for its Recorlev, Gvoke, and Keveyis brands. Recorlev, in particular, has shown 118% growth, accounting for more than $64 million in total revenue due to the increase in referrals and new patient starts. Xeris has also focused on Gvoke, which has shown consistent growth, earning nearly $83 million in revenue in 2024, a 24% increase from 2023. They have also maintained stable brand dedication with Keveyis despite a 13% decline in revenue, ending the year with around $50 million.
The company also has a promising pipeline of candidate treatments. The company’s once-weekly hypothyroidism treatment, XP8121, is a significant focus due to its blockbuster potential., Xeris completed the phase 2 study for XP-8121 in preparation for phase 3, the results of which have underpinned the strategy for 2025.
On the recent earnings call, John Shannon, Xeris’ CEO, and Steven M. Pieper, CFO, expressed their confidence in the company’s financial strength. Pieper anticipates a total revenue of $255 to $275 million for 2025, which indicates a growth of over 30% at the mid-point. He also accelerating revenue growth, an improving margin profile, and disciplined capital allocation, will translate to a financially transformative 2025.
Analysts Are Bullish
Analysts following the company have mostly greeted the news positively. For example, analysts from Craig-Hallum, Piper Sandler, and H.C. Wainwright have all reported optimistic projections for Xeris Biopharma. The company’s strong growth prospects have led Craig-Hallum’s Chase Knickerbocker to increase his price target for Xeris’ shares to $6.50, while maintaining a Buy rating. Similarly, Piper Sandler’s David Amsellem raised the price target to $4, despite noting a Q4 net loss per share.
Meanwhile, H.C. Wainwright analyst Oren Livnat also maintained a Buy rating, setting an even higher price target of $8, noting the strong revenue guidance for 2025, which exceeded expectations and exhibits promising year-over-year growth. Furthermore, the potential of Xeris’s innovative product pipeline, notably the XP-8121 autoinjector, is projected to capture a significant market share.
Xeris Pharmaceuticals is rated a Strong Buy overall, based on the recent recommendations of five analysts. The average price target for XERS is $6.10, which represents a potential upside of 32.90% from current levels.
See more XERS analyst ratings.
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