Xeris Biopharma Holdings Inc (XERS) Reports Robust Revenue Growth in Q4 and Full Year 2023
Total Revenue: Q4 revenue surged by 34% year-over-year to over $44M; full-year revenue jumped 49% to approximately $164M.
Net Loss: Q4 net loss narrowed to $13.4M ($0.10 per share); full-year net loss stood at $62.3M ($0.45 per share).
Cash Position: Ended 2023 with over $72M in cash, cash equivalents, and short-term investments.
Commercial Products: Gvoke, Keveyis, and Recorlev showed strong sales performance, with Recorlev's Q4 revenue increasing by 157.6%.
Research and Development: R&D expenses increased due to ongoing Phase 2 study of XP-8121.
Guidance for 2024: Projects total net revenue of $170M-$200M and year-end cash position of $55M-$75M.
On March 6, 2024, Xeris Biopharma Holdings Inc (NASDAQ:XERS) released its 8-K filing, announcing financial results for the fourth quarter and full year ended December 31, 2023. The company, known for its innovative therapies in endocrinology, neurology, and gastroenterology, including three commercially available productsGvoke, Keveyis, and Recorlevhas reported a significant increase in revenue and a positive cash flow for the last quarter of 2023.
Financial Performance and Challenges
Xeris Biopharma's fourth-quarter revenue reached over $44 million, a 34% increase from the same period in the previous year, while the full-year revenue soared to approximately $164 million, marking a 49% increase versus the prior year. The company's net loss for the fourth quarter was $13.4 million, or $0.10 per share, showing an improvement from the net loss of $12.9 million, or $0.10 per share, in the fourth quarter of 2022. The full-year net loss was $62.3 million, or $0.45 per share. Despite the losses, the company's ability to achieve cash flow positivity of over $6 million in the fourth quarter is a testament to its effective cost management and revenue growth.
However, Xeris Biopharma faces challenges, including increased costs of goods sold, which rose by $1.3 million in Q4 and $6.0 million for the full year, primarily due to higher product sales. Research and development expenses also increased by $1.4 million for both the three months and full year compared to the same periods in 2022, driven by expenses related to the ongoing Phase 2 study of XP-8121. Selling, general, and administrative expenses rose due to higher personnel costs and rent expenses related to a new lease commenced in April 2023.
Financial Achievements and Industry Impact
The company's financial achievements, particularly the growth in product revenue, are significant for a biotechnology firm like Xeris Biopharma. The robust increase in sales of its commercial products, especially Recorlev, which saw a 157.6% increase in Q4 revenue, demonstrates the company's ability to effectively penetrate the market and meet patient needs. Additionally, the entry into a worldwide license agreement for XeriJect formulation of teprotumumab and the refinancing of the Hayfin term loan to a lower overall cost of capital with additional capital available for future growth, position Xeris for sustained success and innovation within the biotech industry.
Key Financial Metrics and Importance
Important metrics from the financial statements include:
Financial Metrics | Q4 2023 | Full Year 2023 |
|---|---|---|
Product Revenue, Net | $42.5 million | $153.4 million |
Royalty, Contract and Other Revenue | $1.9 million | $10.6 million |
Total Revenue | $44.4 million | $163.9 million |
Net Loss | $(13.4 million) | $(62.3 million) |
Cash, Cash Equivalents, and Short-term Investments | $72.5 million | N/A |
These metrics are crucial as they reflect the company's sales performance, revenue generation capabilities, and financial health. The increase in product revenue indicates successful commercialization efforts, while the net loss figures highlight the company's investment in growth and development. The cash position ensures the company has the liquidity to fund ongoing operations and invest in future growth.
Company's Performance Analysis
Xeris Biopharma's performance in 2023 showcases a company on the rise, with significant revenue growth and a strong cash position. The successful commercialization of its products and the strategic partnership for XeriJect technology are key drivers of this growth. The company's guidance for 2024, with expected total net revenue of $170 million to $200 million, indicates confidence in continued growth and market expansion.
Despite the challenges of increased costs and net losses, Xeris Biopharma's strategic initiatives, such as the refinancing of its debt and the upcoming issuance of common shares for the Keveyis CVR revenue milestone, demonstrate a forward-thinking approach to capital management and shareholder value creation.
For more detailed information on Xeris Biopharma Holdings Inc (NASDAQ:XERS)'s financial results, please refer to the full here) from Xeris Biopharma Holdings Inc for further details.
This article first appeared on GuruFocus.
