Xenon Pharmaceuticals: Advancing Late-Stage Epilepsy and Depression Programs and Expanding NaV1.7/Kv7 Pipeline Support Buy Rating and $55 Target

Xenon, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Serge Belanger from Needham maintained a Buy rating on the stock and has a $55.00 price target.

Serge Belanger has given his Buy rating due to a combination of factors that center on Xenon’s advancing late-stage clinical programs and clearly defined upcoming catalysts. He notes that the company has now provided a specific timeline of March for top-line Phase 3 XTOLE2 data in focal onset seizures, and he expects these results to be positive and supportive of a New Drug Application in the second half of 2026. He also points out that Xenon has outlined a path for its major depressive disorder program (XNOVA2), with Phase 3 data anticipated in the first half of 2027, creating a second major value inflection point.

In addition, Belanger highlights that earlier-stage assets targeting NaV1.7 (XEN1701) and Kv7 (XEN1120) are progressing toward Phase 1 readouts in 2026, with the potential to move into proof-of-concept studies in pain, broadening Xenon’s longer-term pipeline opportunity. He emphasizes that recent failures of a competing Kv7 modulator, BHV-7000, in major depressive disorder strengthen the perception that Xenon’s lead candidate, AZK, may be the more effective agent in this class and cast doubt on key claims about the competitor’s mechanism. Taken together, the imminent Phase 3 epilepsy readout, the defined timeline for the depression trial, and the maturing early-stage pipeline underpin his conviction that Xenon is positioned for meaningful value creation. On this basis, he reiterates a Buy rating and a $55 price target ahead of the XTOLE2 data release.

In another report released on January 9, Goldman Sachs also reiterated a Buy rating on the stock with a $0.00 price target.