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Xeris Continuing Growth with Europe Move
Stock Analysis & Ideas

Xeris Continuing Growth with Europe Move

The outbreak of the pandemic and the pursuant need for treatments and vaccines have kept pharmaceutical companies in the spotlight. Though coronavirus treatments remain the priority, other regulatory and pipeline developments have rebounded after having been impacted by the pandemic.

Therefore, amid the increasing need for successful drugs and treatments in the healthcare sector to meet the rising needs of patients, the specialty pharmaceutical company Xeris Pharmaceuticals Inc (NASDAQ: XERS) has been able to emerge triumphant, with approximately 17.6% gains over the past year.

The company is focused on the development and commercialization of ready-to-use injectable and infusible drug formulations. Its lead product candidates, Gvoke HypoPen and Gvoke PFS, are designed for the treatment of severe hypoglycemia, a potentially life-threatening condition in diabetic patients.

Ogluo is the EU trade name for the same product. Recently, Xeris inked a deal with Tetris Pharma Limited for the commercialization of its Ogluo injection in the European Economic Area, United Kingdom, and Switzerland. The injection is designed for the treatment of severe hypoglycemia in adults, adolescents, and children aged 2 years and above with diabetes mellitus.

Notably, Ogluo was permitted by the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) in December 2020, while received marketing authorization from the European Commission (EC) in February 2021. The United Kingdom’s Medicines and Healthcare products Regulatory Agency (MHRA) also approved Ogluo (glucagon) injection this April.

Following the deal with Tetris, Mizuho Securities analyst Difei Yang reiterated a Buy rating and a price target of $9 on the stock.

Considering the deal to be best-in-class for Xeris, Yang believes that the solidly executed deal escalates opportunities for the company in Europe. (See Xeris stock chart on TipRanks)

Additionally, covering 32 countries, Xeris is expected to receive up to $71 million in payments.

Nevertheless, Yang is of the opinion that the company’s product launch in the U.S. “remains the key value driver for Xeris in the coming months.” Investors are expected to focus on quarterly performance in the U.S., he added.

In line with Yang’s bullish stance, Xeris is a Strong Buy based on 3 unanimous Buys. The average Xeris price target of $9 implies upside potential of 159.4% from the current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Xeris, with 3.8% of investors maintaining portfolios on TipRanks increasing their exposure to Xeris stock over the past seven days.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.

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