Xeris Biopharma (XERS) Q2 FY26 earnings call: guidance and Q&A

Why is the top end of the full-year revenue guidance capped at $390M despite Recorlev's momentum and expected H2 benefits? Can you elaborate on what 'in line' execution for the sales expansion looks like, specifically regarding leading indicators like referrals and new starts?

Management expressed confidence in the tightened guidance range of $385M-$390M, reflecting significant growth in H2 from Recorlev's commercial expansion and GVOC's rebound. They confirmed that early signs of contributions from the Recorlev expansion are tracking exactly in line with expectations, based on leading indicators like new prescribers and existing prescriber growth, which supports the H2 revenue guidance.

“Yes, I mean just another great quarter gave us the confidence to raise the bottom end. And we've tightened it. We've to a range of five million at this point. And we're confident that we can hit that. It still reflects some significant growth in the back half of the year.”

asked by Unknown Speaker · answered by Unknown Speaker

How much of the H2 Recorlev growth is driven by prior territories versus new sales reps? What is the productivity of new reps, and are there other tailwinds like average dose or persistency tracking as expected?

The commercial expansion aims to increase both the breadth (new targets) and depth (within existing calls) of sales efforts, so growth is expected across all territories, new and existing. While all metrics are monitored, no material changes are expected in dosing or persistency rates given the current growth and expansion, with trends tracking as anticipated.

“So it's going to come across existing prescribers and new prescribers, and it's going to come across all territories. new and existing. So we see it coming across everywhere.”

asked by Brandon Fowkes · answered by John Shannon

What still needs to be done before XP-8121 Phase 3 initiation, and will this be covered by the webinar? What is the timing for these remaining steps?

Management stated they will not start the Phase 3 trial until the go-to-market commercial presentation (product, device, formulation) is ready. They will provide much more clarity on the clinical program and timing, including clinical and regulatory timelines, at the September 9th webinar. All timelines are currently on track for a 2030 launch.

“We're not going to start that phase three trial till we have the go to market presentation commercial presentation ready to go into that phase three trial.”

asked by Brandon Fowkes · answered by John Shannon

Can you provide color on Recorlev prescriber breadth and depth, including the number of prescribers and repeat prescribers? How many patients are currently on therapy for hypercortisolism, and what share of new patient starts is Xeris capturing?

Xeris targets 12,000 prescribers (new and existing) for Recorlev, and all metrics related to new and existing prescribers are growing at the expected pace. The company noted that over 60% of Recorlev patients are new to therapy, indicating significant market growth and Xeris capturing a substantial share of new patients. They emphasized that the market dynamics suggest continued growth through increased screening and detection, with no significant increase in switching.

“What I will tell you is that more than 60% of our patients are new to therapy. first time on drug. So I would say that points to a couple of things. One is the majority of our patients are market growth.”

asked by Unknown Speaker · answered by John Shannon

Given the commercial infrastructure, how aggressive will Xeris be in looking for assets that leverage this infrastructure?

Xeris is focused on driving top-line growth and making investments that contribute to growth, especially before the XP-8121 launch in 2030. They are actively looking at more opportunities that leverage their endocrinology footprint and rare product capabilities, given their strong financial position.

“We're looking at more and more opportunities that can deliver growth between now and even before the launch of 8121 and 2030. And all those are all the kinds of things that we would focus on, especially ones that leverage our endocrinology footprint and or our rare product capabilities.”

asked by Unknown Speaker · answered by John Shannon

How should investors think about the new Coveas patent, specifically its relevance to the current generic on the market?

The new patent provides confidence to invest incrementally in Coveas and the PPP community to expand efforts to identify and support more patients. Management noted that they have successfully grown the brand in a non-exclusive situation for the past year and a half, and the patent only improves the long-term outlook, regardless of the current generic situation.

“With this kind of protection, we for sure are really confident in investing more, in finding more patients and getting them on therapy.”

asked by Unknown Speaker · answered by Unknown Speaker

How should we think about the XP-8121 Phase 3 program's impact on OPEX going forward?

The guided $25 million increase in R&D for FY26 is almost entirely for XP-8121 and its Phase 3 initiation. Management expects a similar increase in R&D spend in the next year as the trial ramps up, with specific guidance to be provided early next year and further details at the September webinar.

“we guided to an increase in R&D this year of 25 million. That increases almost entirely for XP-8121 and starting the trial later this year.”

asked by Tracy · answered by Unknown Speaker