Xeris Biopharma Files Patent Lawsuit, Shares Drop 10.8% on Recorlev Threat
Xeris Biopharma filed a patent infringement suit against Torrent and Somerset over unauthorized ANDA applications for its cortisol blocker Recorlev, safeguarding IP through March 2040 and orphan exclusivity until December 2028. Shares fell 10.8%, trading 12.6% below the 20-day SMA as bearish RSI and MACD signals emerged.
1. Lawsuit Against Generic Applicants
Xeris Biopharma and Strongbridge Dublin filed a patent infringement suit targeting Torrent Pharmaceuticals and Somerset Therapeutics for submitting ANDA applications to produce unauthorized generic versions of Recorlev. The action secures intellectual property protection through March 2040 and preserves Orphan Drug Exclusivity for Recorlev until December 2028.
2. Technical Sentiment and Share Movement
Shares of Xeris Biopharma dropped 10.8% on the day of the announcement, trading 12.6% below the 20-day SMA, 15.9% below the 50-day SMA and 20.2% below the 100-day SMA. Technical indicators show an RSI of 42.31 and a MACD positioned below its signal line, signaling bearish momentum among investors.
3. Earnings Forecast and Analyst Targets
Xeris Biopharma is set to report Q4 earnings on March 2, with consensus EPS estimated at $0.04 (up from a $0.03 loss YoY) and revenue predicted at $84.17 million (versus $60.10 million YoY). Analyst firms maintain Buy ratings with average price targets ranging from $9.00 to $18.00, reflecting confidence in the company’s growth potential despite current headwinds.