Xeris Biopharma(US:XERS)2024-11-08 16:50Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was over $54 million, with product revenue nearly $53 million, marking a 27% growth year-over-year [6][29] - Product revenue growth of 27% represents the 12th consecutive quarter of over 20% growth, with the last two quarters accelerating to 26% and 27% respectively [6][29] - Year-to-date net product revenue was $139.6 million, increasing by approximately 26% compared to the prior year [30] Business Line Data and Key Metrics Changes - Recorlev achieved net revenue of $17.7 million for Q3, more than doubling compared to the prior year, with a 126% increase in new patient starts [31][10] - Gvoke generated $22.9 million in revenue for the quarter, a 29% increase year-over-year, with total prescriptions increasing by 20% [33][14] - Keveyis net revenue was $12.2 million for Q3, with a modest increase in the number of patients despite generic competition [34][18] Market Data and Key Metrics Changes - The Cushing syndrome marketplace is expanding rapidly, creating strong tailwinds for Recorlev, with increasing screenings and diagnoses of hypercortisolism [12][11] - Gvoke has a total addressable patient population of over 14 million people still unprotected, indicating significant market potential [16] Company Strategy and Development Direction - The company focuses on three strategic priorities: rapid growth of commercial franchises, enhancing financial discipline, and improving communication with stakeholders [8][19] - The company raised its revenue guidance for 2024 to $198 million to $202 million, reflecting confidence in continued growth [18][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, particularly regarding top-line growth and strong margin profiles [50][52] - The company anticipates providing detailed financial guidance for 2025 in March, with a focus on key metrics that reflect long-term health [72][27] Other Important Information - The company ended Q3 with over $69 million in cash, allowing for growth investments without the need for dilutive financing [20][42] - Research and development expenses were $5.9 million for Q3, primarily for the pipeline product XP8121 and technology partnerships [38][39] Q&A Session Summary Question: What are the specific drivers for Recorlev's growth? - Management highlighted market growth and effective execution by the team in identifying patients with hypercortisolemia as key drivers [46][47] Question: What is the outlook for cash flow breakeven? - Management indicated confidence in achieving cash flow breakeven in Q4, with further updates expected in early 2025 [50][52] Question: Can you comment on the cost of goods sold and gross margin? - Management acknowledged a higher write-off in Q3 but expects gross margins to remain healthy as sales increase [56][57] Question: What is the long-term outlook for Keveyis? - Management expressed confidence in the durability of Keveyis despite generic competition, emphasizing patient retention and support services [88][90] Question: How does the competitive landscape affect Recorlev? - Management views increased awareness and recognition of cortisol's role in various conditions as beneficial for Recorlev, creating a favorable environment for growth [92]