In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Xeris Biopharma Holdings Inc (NASDAQ:XERS) reported a 48% increase in total revenue for Q1 2025, marking the 14th consecutive quarter of over 20% product revenue growth.
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The company raised the bottom end of its revenue guidance from $255 million to $260 million, indicating confidence in continued growth.
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Rekorolev, XERS's fastest-growing product, saw a 141% increase in revenue, driven by targeted investments in patient access and healthcare provider engagement.
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The FDA approved XERS's supplemental new drug application for GVO vileDX, expanding its use as a diagnostic aid during radiologic examinations.
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XERS maintains a strong financial position, allowing for strategic growth without the need for dilutive financing, and achieved a positive adjusted EBITDA of $4.4 million for the quarter.
Negative Points
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Despite strong growth, XERS did not provide updated guidance on peak sales potential for Rekorolev, leaving some uncertainty about future revenue ceilings.
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The company faces competitive pressures in the glucagon market, although it claims to be driving market growth.
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Selling, general, and administrative expenses increased by 15% compared to the prior year, reflecting higher costs associated with commercial expansion.
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There is ongoing speculation about potential sector-specific tariffs, although XERS does not anticipate a material impact due to its US-centric operations.
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XERS's future growth is partly dependent on the successful development and commercialization of new products like XP 8,121, which still requires further development and regulatory approval.
Q & A Highlights
Q: Can you elaborate on the growth potential for Rekorolev and how you plan to expand your commercial infrastructure to support this growth? A: John Shannon, CEO: We expanded our sales organization last year in anticipation of market growth for Rekorolev. While we haven't updated our peak sales guidance, we plan to provide more details at our analyst and investor day in June. We see significant market expansion and opportunities for Rekorolev, and any further infrastructure expansion will align with market growth.
Q: What are the primary drivers behind your operational efficiency and profitability improvements, and are these sustainable? A: Steve Piper, CFO: Our operational efficiency is driven by strong top-line growth, particularly from Rekorolev, and disciplined expense management. We expect to maintain positive adjusted EBITDA moving forward, reflecting our commitment to financial discipline and sustainable growth.