Please ensure Javascript is enabled for purposes of website accessibility

Why Xeris Pharmaceuticals Is Soaring 7% Higher Today

By Rich Duprey – Oct 29, 2021 at 12:38PM

Key Points

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The biopharma is starting to put together a string of good news advances.

What happened

Shares of Xeris Pharmaceuticals (XERS) were jumping 7% higher heading into noontime trading Friday after analyst coverage of the specialty biopharma began the day with a buy rating.

H.C. Wainwright analyst Oren Livnat also assigned a $4-per-share price target on Xeris, which is more than double where the stock closed yesterday.

Lab technician testing sample

Image source: Getty Images.

So what

Livnat told investors in a research note that Xeris holds substantial potential with Gvoke, a pre-filled glucagon platform offering syringe and auto-injector pen options for the treatment of severe hypoglycemia in diabetic patients. 

Because Gvoke is stable at room temperatures and comes in a ready-to-use format, it is a far superior alternative to existing glucagon rescue kits. Livnat believes Xeris can achieve sustainable growth in the U.S. and annual sales in excess of $155 million.

He notes the biopharma has realized steady market share gains since introducing the Gvoke HydroPen in mid-2020, despite the macroeconomic headwinds it faced.

Now what

Shares of Xeris Pharmaceuticals have been battered all year long, losing three-quarters of their value from their February highs after narrowly missing Wall Street forecasts for revenue and losses.

The biopharma has been a disappointment for investors, too, ever since its initial public offering in 2018. After it went public at $15 per share, it's largely been a long steady slide with only a few bounces higher.

While today might just be another one of those blips, on Monday Xeris announced a collaboration agreement with Merck (MRK -1.14%) to use the biopharma's XeriJect suspension-based formulation technology with undisclosed monoclonal antibodies to engineer ultra-high-concentration, ready-to-use formulations.

No financial terms were disclosed with the pharmaceutical giant, but analysts do see Xeris growing revenue from $43 million this year to $226 million in 2025 and maybe even more if Livnat's projections hold out.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.