Xeris Pharmaceuticals Inc (XERS)

History and Background

Xeris Pharmaceuticals, Inc. was founded in 2005 and is focused on developing and commercializing ready-to-use injectable and infusible drug formulations. They initially focused on diabetes but have expanded to other therapeutic areas.

Core Business Areas

• Endocrinology: Focuses on therapies for diabetes and hypoglycemia, including Gvoke (glucagon injection) and Recorlev (levoketoconazole) for Cushing's syndrome.
• Neurology: Developing therapies for epilepsy, including programs in Phase 2 clinical trials. Includes investigational products for seizure rescue therapy.

Leadership and Structure

Paul R. Edick is the Chairman and CEO. The company has a typical biopharmaceutical organizational structure with departments for R&D, commercial operations, manufacturing, and finance.

Key Offerings

• Gvoke (glucagon injection): Gvoke is a pre-filled syringe and auto-injector used for the treatment of severe hypoglycemia in people with diabetes ages 2 and older. Competitors include Eli Lilly's Baqsimi and traditional glucagon kits (e.g., GlucaGen). The market share data is difficult to pinpoint exactly but analysts estimate Gvoke holds approximately 25-30% of the glucagon rescue market in the US.
• Recorlev (levoketoconazole): Recorlev is used to treat Cushing's syndrome. Recorlev is competing with Signifor LAR from Recordati Rare Diseases, Osilodrostat (Isturisa) from Novartis and metyrapone as well as surgical options. Limited market share is available as Xeris acquired the product.

Industry Overview

The pharmaceutical industry is highly competitive and regulated. There is a growing demand for innovative drug delivery systems and therapies for chronic diseases.

Positioning

Xeris is positioned as a specialty pharmaceutical company focused on developing and commercializing ready-to-use injectable therapies. Their competitive advantage lies in their formulation technology and targeted therapeutic areas.

Total Addressable Market (TAM)

The TAM for Xeris' products includes the glucagon rescue market for severe hypoglycemia and the market for Cushing's syndrome treatments, with potential expansion into epilepsy. TAM is estimated to be upwards of $2B for all their products. Xeris' position relative to this TAM is growing, but they are still a smaller player compared to some larger pharmaceutical companies.

Key Competitors

• LLY
• NVS
• RDHL

Competitive Landscape

Xeris has a competitive advantage in ready-to-use glucagon formulations. However, it faces competition from larger pharmaceutical companies with greater resources and established market positions.

Strongbridge Biopharma plc

• Year: 2021
• Acquisition Price (USD millions): 267
• Strategic Rationale: Acquisition of Strongbridge Biopharma to gain access to Recorlev, expanding their endocrinology portfolio.

Historical Growth: Growth has been driven by the sales of Gvoke and Recorlev. The initial uptake of Gvoke was slow but has accelerated in recent years.

Future Projections: Analysts project revenue growth driven by increased adoption of Gvoke and potential new product launches.

Recent Initiatives: Recent initiatives include expanding the sales force, developing new formulations, and progressing the epilepsy pipeline.

Xeris Pharmaceuticals is a specialty pharmaceutical company with a focus on endocrinology and neurology. Gvoke is driving revenue, and its acquisition of Strongbridge brought them Recorlev which expands the product portfolio. The company needs to expand its product portfolio, streamline operations and keep a close eye on the larger players in the market. While the growth is promising, the company still has losses and has to continue to develop its pipeline and manage its debt.

Data Sources:

• Company Website
• SEC Filings
• Analyst Reports

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.