Xeris Biopharma (XERS) Shares Plunge 6.99% to 2025 Low Amid Biopharma Sector Woes

Xeris Biopharma (XERS) shares plunged 6.99% on Thursday, marking their lowest level since September 2025, with an intraday decline of 8.19%. The selloff reflects investor concerns amid evolving dynamics in the biopharma sector.

Despite strong revenue growth in the first half of 2025—driven by 48% and 49% year-over-year increases in Q1 and Q2, respectively—the stock has faced pressure. The company’s key product, Recorlev, saw a 141% YoY revenue surge, while new launches like Gvoke VialDx, approved in March 2025, are expected to bolster long-term prospects. However, recent patent extensions for Recorlev to 2040, though a strategic win, have not yet translated into immediate market confidence.

Analyst sentiment remains cautiously optimistic, with a "Moderate Buy" consensus rating. The Zacks Rank #2 (Buy) underscores positive earnings estimate revisions, yet Q3 2025 projections remain negative at -$0.08 per share. Institutional ownership at 42.75% highlights continued backing, while short interest has dropped 26.73% in a month, signaling reduced bearish bets. These factors suggest a mixed outlook, balancing growth potential against near-term profitability challenges.

The Medical - Drugs industry’s broader struggles, ranked in the bottom 46% by Zacks, add context to XERs’ performance. While Xeris’ focus on endocrinology and gastroenterology offers differentiation, sector-wide volatility persists. Investors are now closely watching the commercialization of Gvoke VialDx and Recorlev’s market expansion as key catalysts for sustained recovery.