Xenon Pharmaceuticals: Strong Buy Rating Amid Promising Clinical Trials and Financial Stability

TD Cowen analyst Joseph Thome has maintained their bullish stance on XENE stock, giving a Buy rating on May 7.

Joseph Thome has given his Buy rating due to a combination of factors related to Xenon’s ongoing clinical trials and financial outlook. Despite a reported net loss in the first quarter of 2025, Xenon maintains a strong cash position, which supports its continued research and development efforts. The slight delay in the pivotal Phase III trial data for azetukalner in focal onset seizures is seen as a minor setback, but it does not alter the overall confidence in the drug’s potential success. This confidence is bolstered by positive Phase II results and ongoing support from key opinion leaders.
Furthermore, Xenon’s management remains optimistic about the trial’s progress, with recruitment nearing completion and no significant issues in trial conduct. The favorable feedback from key opinion leaders and primary market research suggests a positive reception for azetukalner, which is expected to meet the criteria of an ideal anti-seizure medication. Additionally, the continued progress in azetukalner’s clinical development for major depressive disorder and bipolar depression further supports the Buy rating, as these trials advance and show promising early results.

According to TipRanks, Thome is an analyst with an average return of -3.6% and a 32.21% success rate. Thome covers the Healthcare sector, focusing on stocks such as uniQure, Jazz Pharmaceuticals, and PTC Therapeutics.

In another report released on May 7, Chardan Capital also initiated coverage with a Buy rating on the stock with a $55.00 price target.