Xeris Biopharma Holdings, Inc. (XERS) Bundle
Understanding Xeris Biopharma Holdings, Inc. (XERS) Revenue Streams
Understanding Xeris Biopharma Holdings, Inc.’s Revenue Streams
Product Revenue Breakdown:
| Product | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Gvoke | $22,942 | $17,735 | $59,567 | $48,406 |
| Recorlev | $17,726 | $8,097 | $41,663 | $19,741 |
| Keveyis | $12,193 | $15,865 | $38,406 | $42,708 |
| Total Product Revenue, Net | $52,861 | $41,697 | $139,636 | $110,855 |
| Royalty, Contract and Other Revenue | $1,407 | $6,623 | $3,335 | $8,669 |
| Total Revenue | $54,268 | $48,320 | $142,971 | $119,524 |
Year-over-Year Revenue Growth Rate:
- Three months ended September 30, 2024 vs. 2023: 12.3% increase in total revenue.
- Nine months ended September 30, 2024 vs. 2023: 19.6% increase in total revenue.
Contribution of Different Business Segments to Overall Revenue:
- Gvoke contributed 43.4% to total product revenue for the three months ended September 30, 2024.
- Recorlev contributed 33.5% to total product revenue for the three months ended September 30, 2024.
- Keveyis contributed 23.1% to total product revenue for the three months ended September 30, 2024.
Analysis of Significant Changes in Revenue Streams:
For the three months ended September 30, 2024, significant revenue changes included:
- Gvoke: Increased by $5.2 million or 29.4% compared to the same period in 2023.
- Recorlev: Increased by $9.6 million or 118.9% compared to the same period in 2023.
- Keveyis: Decreased by $3.7 million or 23.1% compared to the same period in 2023.
Historical Trends:
For the nine months ended September 30, 2024, revenue from:
- Gvoke: Increased by $11.2 million or 23.1%.
- Recorlev: Increased by $21.9 million or 111.0%.
- Keveyis: Decreased by $4.3 million or 10.1%.
A Deep Dive into Xeris Biopharma Holdings, Inc. (XERS) Profitability
A Deep Dive into Xeris Biopharma Holdings, Inc.'s Profitability
Gross Profit Margin: For the three months ended September 30, 2024, the gross profit margin was approximately 75.7%, calculated from total revenue of $54.3 million and cost of goods sold of $13.6 million. For the nine months ended September 30, 2024, the gross profit margin was approximately 80.9%, with total revenue of $143.0 million and cost of goods sold of $27.4 million.
Operating Profit Margin: The operating profit margin for the three months ended September 30, 2024, was -23.8%, with a loss from operations of $(12.9 million) against total revenue of $54.3 million. For the nine months ended September 30, 2024, the operating profit margin was -24.6%, with a loss from operations of $(35.3 million) against total revenue of $143.0 million.
Net Profit Margin: The net profit margin for the three months ended September 30, 2024, was -29.0%, reflecting a net loss of $(15.7 million) on total revenue of $54.3 million. For the nine months ended September 30, 2024, the net profit margin was -34.7%, with a net loss of $(49.7 million) on total revenue of $143.0 million.
Trends in Profitability Over Time
In comparing the three months ended September 30, 2024, to the same period in 2023, the gross profit margin improved from 68.0% to 75.7%. The operating loss increased from $(4.9 million) in Q3 2023 to $(12.9 million) in Q3 2024, while the net loss rose from $(12.2 million) to $(15.7 million).
For the nine-month periods, gross profit margin improved from 71.2% to 80.9%. Operating losses increased slightly from $(34.2 million) to $(35.3 million), while net losses rose from $(48.9 million) to $(49.7 million).
Comparison of Profitability Ratios with Industry Averages
The industry average gross profit margin in the biopharmaceutical sector typically hovers around 70%, positioning the company above this benchmark at 75.7% for Q3 2024. However, the operating and net profit margins are significantly below industry averages, which generally range from -10% to -15% for early-stage biopharma companies.
Analysis of Operational Efficiency
The cost of goods sold (COGS) for the three months ended September 30, 2024, was $13.6 million, representing an increase of 65.7% year-over-year, attributed to a rise in production costs and manufacturing adjustments. The COGS as a percentage of total revenue increased from 19.7% in Q3 2023 to 25.7% in Q3 2024.
Research and development (R&D) expenses for the three months ended September 30, 2024, were $5.9 million, up 17.0% from $5.0 million in 2023. Selling, general, and administrative expenses also rose by 20.6% to $45.0 million in Q3 2024 from $37.3 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Gross Profit Margin | 75.7% | 68.0% | 11.4% |
| Operating Profit Margin | -23.8% | -10.5% | -126.5% |
| Net Profit Margin | -29.0% | -29.2% | 0.7% |
| R&D Expenses | $5.9 million | $5.0 million | 17.0% |
| Selling, General & Administrative Expenses | $45.0 million | $37.3 million | 20.6% |
Debt vs. Equity: How Xeris Biopharma Holdings, Inc. (XERS) Finances Its Growth
Debt vs. Equity: How Xeris Biopharma Holdings, Inc. Finances Its Growth
Debt Levels
As of September 30, 2024, Xeris Biopharma Holdings, Inc. reported total debt of $231.3 million, comprising $49.2 million in convertible senior notes and $185.4 million from loan agreements .
Debt-to-Equity Ratio
The company's debt-to-equity ratio stands at approximately 15.7, calculated using total debt of $231.3 million against total stockholders' equity of $(28.3) million as of September 30, 2024 .
Recent Debt Issuances
On September 29, 2023, the company exchanged $32.0 million of its 2025 Convertible Notes for $33.6 million in new 8.00% Convertible Notes due in 2028 . The outstanding balance of the 2025 Convertible Notes as of September 30, 2024, is $15.2 million, while the 2028 Convertible Notes stand at $33.6 million .
Credit Ratings
The company does not have a publicly assigned credit rating as of the latest reports; however, it is subject to the terms of its loan agreements which require compliance with various covenants .
Debt Refinancing Activity
Debt refinancing costs for the nine months ended September 30, 2024, amounted to $2.7 million, related to advisory and legal fees associated with restructuring its debt .
Balance Between Debt Financing and Equity Funding
The company has primarily funded its operations through a combination of equity and debt financing. As of September 30, 2024, it has an accumulated deficit of $666.7 million, indicating reliance on external financing to sustain operations .
| Debt Component | Amount (in millions) |
|---|---|
| Convertible Senior Notes | $49.2 |
| Loan Agreements | $185.4 |
| Total Debt | $231.3 |
| Metrics | Value |
|---|---|
| Debt-to-Equity Ratio | 15.7 |
| Accumulated Deficit | $(666.7) |
| Interest Expense (9 months ended Sept 30, 2024) | $22.8 million |
Assessing Xeris Biopharma Holdings, Inc. (XERS) Liquidity
Assessing Xeris Biopharma Holdings, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio stands at 1.79. This is calculated based on current assets of $162,799,000 and current liabilities of $91,013,000.
Quick Ratio: The quick ratio is calculated at 1.28, considering cash, cash equivalents, trade accounts receivable, and short-term investments against current liabilities.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is $71,786,000, reflecting a decrease from $61,071,000 as of December 31, 2023. This trend shows a tightening of liquidity as current liabilities outpaced the growth in current assets.
Cash Flow Statements Overview
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(38,956) | $(54,494) |
| Net Cash Used in Investing Activities | $(5,133) | $(20,872) |
| Net Cash Provided by Financing Activities | $35,770 | $(379) |
Potential Liquidity Concerns or Strengths
Liquidity concerns are highlighted by the significant net losses reported, totaling $(49,723,000) for the nine months ended September 30, 2024, compared to $(48,865,000) for the same period in 2023. The accumulated deficit has grown to $(666,748,000) as of September 30, 2024, indicating ongoing challenges in achieving profitability.
However, the positive cash flow from financing activities at $35,770,000 for 2024 suggests a capacity to raise funds through debt refinancing, which may bolster liquidity in the short term.
Is Xeris Biopharma Holdings, Inc. (XERS) Overvalued or Undervalued?
Valuation Analysis
To evaluate whether Xeris Biopharma Holdings, Inc. is overvalued or undervalued, we will analyze key financial ratios, stock price trends, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The P/E ratio for Xeris Biopharma as of September 30, 2024, is not applicable as the company reported a net loss of $49.7 million for the nine months ended September 30, 2024.
Price-to-Book (P/B) Ratio
The book value per share as of September 30, 2024, is calculated as follows:
- Total stockholders' equity (deficit): ($28.3 million)
- Shares outstanding: 149,003,934
- Book value per share: ($28.3 million) / 149,003,934 ≈ ($0.19)
As the book value is negative, the P/B ratio is also not applicable.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The company reported EBITDA losses. For the nine months ended September 30, 2024, the EBITDA was approximately ($35.3 million). Thus, the EV/EBITDA ratio is also not applicable.
Stock Price Trends
The stock price of Xeris Biopharma has shown volatility over the last 12 months. As of September 30, 2024, the stock price was approximately $1.12, down from $2.50 a year prior, representing a decline of approximately 55%.
Dividend Yield and Payout Ratios
Xeris Biopharma does not currently pay any dividends and has no payout ratio as it has not generated positive earnings.
Analyst Consensus on Stock Valuation
As of the latest reports, the analyst consensus on Xeris Biopharma stock is a Hold, with some analysts suggesting a potential upside if the company can successfully commercialize its products and manage its expenses effectively.
| Metric | Value |
|---|---|
| P/E Ratio | N/A |
| P/B Ratio | N/A |
| EV/EBITDA Ratio | N/A |
| Stock Price (Sept 30, 2024) | $1.12 |
| Stock Price (Sept 30, 2023) | $2.50 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Xeris Biopharma Holdings, Inc. (XERS)
Key Risks Facing Xeris Biopharma Holdings, Inc.
Industry Competition: The biopharmaceutical industry is highly competitive, with numerous established and emerging companies vying for market share. As of September 30, 2024, the company reported an accumulated deficit of $666.7 million and has faced significant competition for its products, which may impact revenue growth.
Regulatory Changes: The company operates in a heavily regulated environment, with the potential for changes in regulations affecting product approval processes and commercialization efforts. Regulatory scrutiny can lead to delays or increased costs associated with compliance.
Market Conditions: Economic fluctuations can impact consumer spending on pharmaceuticals and healthcare. For the nine months ended September 30, 2024, the company recorded net losses of $49.7 million, reflecting ongoing challenges in generating sufficient revenue to cover operational costs.
Operational Risks
The operational risks include reliance on key personnel, potential manufacturing disruptions, and the ability to maintain supply chains. The company incurred significant expenses related to restructuring and CEO succession, amounting to $6.1 million as of September 30, 2024.
Financial Risks
The company has reported significant financial losses and dependency on external financing. For the nine months ended September 30, 2024, total revenue was $142.97 million, with costs and expenses amounting to $178.30 million, leading to a loss from operations of $35.33 million.
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Loss (2024) | $49,723 |
| Accumulated Deficit | $666,748 |
| Total Revenue (2024) | $142,971 |
| Total Costs and Expenses (2024) | $178,296 |
Strategic Risks
The company's strategic risks involve its ability to effectively market and sell its products. The marketing expenses for the nine months ended September 30, 2024, increased by 20.6% compared to the previous year, which may pressure profit margins if sales do not meet expectations.
Mitigation Strategies
To address these risks, the company has implemented several strategies, including seeking additional financing to support operations and product development. As of September 30, 2024, the company reported $59.23 million in cash and cash equivalents, providing some liquidity to manage short-term obligations.
Additionally, the company is focused on enhancing its product offerings and expanding its market presence, which may help mitigate the impact of competition and regulatory challenges.
Future Growth Prospects for Xeris Biopharma Holdings, Inc. (XERS)
Future Growth Prospects for Xeris Biopharma Holdings, Inc.
Analysis of Key Growth Drivers
Key drivers for growth include product innovations, market expansions, and strategic partnerships. The company has seen a significant increase in net revenue from its products. For instance, net revenue from Gvoke increased by $5.2 million or 29.4% for the three months ended September 30, 2024, compared to the same period in 2023, driven by prescription growth and favorable net pricing .
Moreover, Recorlev's net revenue soared by $9.6 million or 118.9% during the same period, indicating strong demand and successful market penetration .
Future Revenue Growth Projections and Earnings Estimates
Future revenue projections are promising, with expectations for continued growth driven by increasing sales of existing products and potential new product launches. The total revenue for the nine months ended September 30, 2024, reached $142.971 million, a 19.6% increase from $119.524 million in 2023 . Analysts estimate that the company may achieve further revenue increases, particularly as it continues to enhance its product offerings and expand its market reach.
Strategic Initiatives or Partnerships
The company is actively pursuing strategic partnerships to bolster its growth. Recent initiatives include entering a Credit Agreement with Hayfin Services LLP, which provided $100 million in term loans . This funding is crucial for supporting marketing efforts for Gvoke, Recorlev, and Keveyis, as well as ongoing research and development activities.
Competitive Advantages
Xeris Biopharma holds competitive advantages that position it favorably in the market. These include a robust product pipeline and proprietary technology platforms like XeriSol and XeriJect, which facilitate the development of innovative drug formulations . Additionally, the company's commitment to research and development is reflected in its increased spending, with research and development expenses rising by 22.0% for the nine months ended September 30, 2024, compared to the same period in 2023 .
| Growth Driver | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Growth |
|---|---|---|---|
| Gvoke | $22.9 million | $17.7 million | 29.4% |
| Recorlev | $17.6 million | $8.0 million | 118.9% |
| Keveyis | $12.3 million | $16.0 million | -23.1% |
| Total Revenue | $54.3 million | $48.3 million | 12.3% |
In summary, the strategic focus on expanding its product portfolio and enhancing operational efficiencies positions the company to capitalize on growth opportunities in the biopharma sector. With an accumulated deficit of $666.7 million as of September 30, 2024, the company's efforts in revenue generation and cost management will be critical in navigating its financial landscape .
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Resources:
- Xeris Biopharma Holdings, Inc. (XERS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Xeris Biopharma Holdings, Inc. (XERS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xeris Biopharma Holdings, Inc. (XERS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.