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.
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.
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.