Xenon Pharmaceuticals: Undervalued ‘Pipeline-in-a-Drug’ Story with Blockbuster Potential Ahead of Key 2026 Readouts

William Blair analyst Myles Minter has maintained their bullish stance on XENE stock, giving a Buy rating yesterday.

Myles Minter has given his Buy rating due to a combination of factors related to Xenon’s lead epilepsy asset and broader pipeline potential. He expects the upcoming Phase III X-TOLE2 data in March 2026 to validate azetukalner’s strong balance of efficacy and safety in focal onset seizures and believes its convenient, once-daily, non-titrated dosing with flexible strengths should support blockbuster-level commercial uptake. In his view, these product attributes, together with a differentiated mechanism of action, justify a peak global sales forecast above $2.6 billion and compare favorably to peer expectations for competing epilepsy programs.

Minter also highlights that, relative to other neurology developers with higher peak sales targets, Xenon’s current valuation does not fully reflect this opportunity, leaving meaningful upside if the X-TOLE2 results align with his base or bull scenarios. He points to additional development in psychiatric and pain indications—such as primary generalized tonic-clonic seizures, major depressive disorder, bipolar disorder, and Nav1.7-based pain assets—as creating a “pipeline-in-a-drug” profile that can further enhance long-term value. Upcoming Phase I readouts for Xenon’s pain candidates (Nav1.7 and Kv7 modulators) in 2026 are viewed as important catalysts that could expand the company’s addressable market. Taken together, these late-stage and earlier pipeline drivers underpin his conviction that Xenon is materially undervalued and warrant maintaining a Buy recommendation.

Minter covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals, VistaGen Therapeutics, and Intellia Therapeutics. According to TipRanks, Minter has an average return of 26.8% and a 56.25% success rate on recommended stocks.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $55.00 price target.