Xenon Pharmaceuticals: Azetuklaner’s Strong Phase III Data and Blockbuster Potential Underscore Undervalued Buy Opportunity

TD Cowen analyst Joseph Thome has maintained their bullish stance on XENE stock, giving a Buy rating today.

Joseph Thome has given his Buy rating due to a combination of factors tied primarily to the strength of azetuklaner’s Phase III X-TOLE2 data in focal onset seizures, which outperformed prior expectations and supports a sizeable commercial opportunity. He now projects U.S. peak sales of about $1.8 billion, reflecting feedback from epilepsy specialists who view the drug’s novel mechanism, once-daily dosing, lack of formal titration, rapid onset, and limited drug–drug interactions as a highly attractive profile.

He also believes azetuklaner can ultimately outpace Xcopri, a current market leader that, despite strong efficacy, suffers from safety and usability challenges that restrict broader neurologist adoption. With a U.S. NDA filing planned for the third quarter, additional late-stage trials progressing for European and broader seizure indications, and a potential launch window in 2027–2028, Thome views Xenon as undervalued relative to the long-term growth and pipeline prospects, underpinning his Buy recommendation.

In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $97.00 price target.