Xeris Biopharma Holdings, Inc. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Record Quarter: Q3 total product revenue exceeded $74 million, a 40% increase year-over-year. The strength of year-to-date results led to raising the lower end of full-year total revenue guidance.
• Revenue Guidance: Now expects total revenue for 2025 to be in the range of $285 million to $290 million, a 42% increase at the midpoint year-over-year.
• Commercial Expansion: Initiated the next commercial expansion, nearly doubling sales and patient support teams to expand RECORLEV's commercial footprint and support future scalable growth.
• Pipeline Progress: XP-8121, a once-weekly subcutaneous form of levothyroxine for primary hypothyroidism, continues to advance as planned, on track to initiate Phase III clinical trial in the second half of 2026.
• Financials: Gross margin grew to 85% driven by improved product mix. Adjusted EBITDA for Q3 was $17.4 million, and the company reported quarterly net income for the first time, highlighting growing commercial strength and operational discipline.

Segment Performance

• RECORLEV: Generated $37 million in Q3, a year-over-year increase of 109%. It remains the primary growth engine, with the average number of patients on therapy growing by 108% vs. the prior year. Revenue contribution is significant as it drives substantial growth.
• Gvoke: Delivered revenue of more than $25 million, up nearly 10% from the same period last year. This growth is driven by a 5% increase in total prescriptions and favorable gross to net.
• KEVEYIS: Quarterly revenue was approximately $12 million, driven by growth in the average number of patients on therapy. It serves a critical need for patients with primary periodic paralysis, highlighting the importance of holistic patient support.

Guidance

• Raised full-year total revenue guidance to $285 million to $290 million from the prior range of $280 million to $290 million.
• Expect SG&A and R&D spend to increase in the fourth quarter due to investments in RECORLEV commercial organization and preparation for XP-8121 Phase III clinical study.
• Committed to maintaining positive adjusted EBITDA even with incremental investments, with plans to support near and long-term growth through strategic priorities.

Risks

• No specific risks detailed in the transcript beyond general forward-looking statement risks associated with actual results differing from forward-looking statements, as noted in SEC filings.

Question and Answer

Q: Can you talk about the impact of the expanded sales force on RECORLEV productivity and if you capitalized on competitor supply issues in Q3?

A: The sales force for RECORLEV was increased by 50% starting in the third quarter of the prior year, with reps ramping up productivity. No unusual impact from competitor supply issues was seen in Q3, with patient mix remaining consistent.

Q: What are thoughts on RECORLEV's long-term sales guidance and R&D spend for XP-8121?

A: RECORLEV is expected to grow to a $1 billion product as part of the company's plan. R&D spend for XP-8121 will start to ramp up in the fourth quarter and peak around 2027 as the Phase III trial is initiated in the second half of 2026.

Q: Discuss competitive dynamics for RECORLEV and KEVEYIS durability?

A: Relacorilant approval is seen as a market opportunity that could benefit RECORLEV. KEVEYIS is durable due to its holistic approach to supporting patients with primary periodic paralysis, with new patients added regularly and strong patient support model.