In a report released today, Douglas Tsao from H.C. Wainwright maintained a Buy rating on Xenon, with a price target of $53.00.
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Douglas Tsao has given his Buy rating due to a combination of factors including the promising progress of Xenon’s lead candidate, azetukalner, in treating focal epilepsy. The completion of enrollment for the Phase 3 X-TOLE2 study is a significant milestone, with topline data expected in January 2026, positioning the drug for a potential NDA submission in the same year. The strong and durable efficacy, novel mechanism, and positive mood impact of azetukalner are particularly noteworthy, and the drug is anticipated to be a key player in early line settings for focal epilepsy.
Additionally, the potential mood benefits of azetukalner are being explored, which could differentiate it from other anti-seizure medications. Xenon’s ongoing Phase 3 studies in major depressive disorder (MDD) and bipolar depression (BPD) further expand its market potential. The advancement of early pipeline assets, including pain programs and treatments for Dravet Syndrome, also contributes to the positive outlook. These developments collectively support the Buy rating as they highlight Xenon’s robust pipeline and strategic progress in addressing unmet medical needs.