Xenon Pharmaceuticals (XENE)
NASDAQ:XENE
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Xenon
(NASDAQ:XENE)
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Rating:61Neutral
Price Target:
$55.00
▼(-7.87% Downside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong earnings-call catalysts and guidance (Phase 3 data, defined NDA path, and multi-year cash runway). This is tempered by weak current financial performance (no meaningful revenue and substantial cash burn) and bearish technical indicators; valuation metrics offer limited support due to negative earnings and no dividend.
Positive Factors
Strong balance sheet and multi-year runway
A fortified cash position ($1.3B after a $747.5M financing) funds NDA preparation, manufacturing scale-up and commercial build for several years. This reduces near-term refinancing pressure and gives management time to execute regulatory and launch activities, materially lowering solvency risk.
Negative Factors
Pre‑commercial profile with sustained cash burn
Despite a strong balance sheet, the company remains loss‑making with zero product revenue and substantial negative operating and free cash flow. Continued high burn elevates dilution risk or funding needs if regulatory or commercial timelines slip, pressuring long‑term shareholder returns until products generate revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and multi-year runway
A fortified cash position ($1.3B after a $747.5M financing) funds NDA preparation, manufacturing scale-up and commercial build for several years. This reduces near-term refinancing pressure and gives management time to execute regulatory and launch activities, materially lowering solvency risk.
Read all positive factors
Xenon (XENE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.00B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-100.00%
EPS Growth-46.29%
CountryUS
Employees316
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.70
Shares Outstanding96,665,550
10 Day Avg. Volume1,633,853
30 Day Avg. Volume1,173,659
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)6.11
Price to Sales (P/S)473.62
P/FCF Ratio-12.69
Enterprise Value/Market Cap0.76
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-48.31
Enterprise Value/Ebitda-9.48
Forecast
1Y Price Target
$81.10Price Target Upside35.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)-4.78
Revenue Forecast (FY)$2.07M
Xenon Business Overview & Revenue Model
Company Description
Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, A Kv7 potassium channel opener t...
How the Company Makes Money
Xenon Pharmaceuticals generates revenue primarily through collaborative arrangements and licensing agreements with other pharmaceutical companies. These partnerships often involve upfront payments, milestone achievements, and royalties on sales re...
Xenon Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed overwhelmingly positive clinical and corporate momentum: a highly favorable XTOL-2 Phase 3 data set with strong efficacy, long-term seizure freedom signals, a consistent safety profile, and a fortified balance sheet ($1.3B) supporting operations into 2029. The company has a clear regulatory path (NDA guidance for 2026) and active commercial and payer engagement. Remaining uncertainties are largely execution and timing risks (regulatory scheduling, commercial launch logistics, payer access) and limited near-term public granularity on Phase 1 pain data. On balance, the highlights are substantial and materially outweigh the modest operational and timing risks discussed.Positive Updates
Exceptional Phase 3 XTOL-2 Efficacy
XTOL-2 met its primary endpoint with median percent change (MPC) in monthly focal seizure frequency of 53.2% (25 mg), 34.5% (15 mg) versus 10.4% for placebo; placebo-adjusted MPC for 25 mg ~42.8 percentage points. Company described this as exceeding expectations and surpassing prior Phase 2b results.
Negative Updates
Cross-Trial Comparison Uncertainty and Competition
Management acknowledged challenges of cross-trial comparisons (e.g., to cenobamate/XCOPRI) due to differences in patient populations and titration regimens. Competitive landscape includes established agents (cenobamate, BRIVIACT) and uncertainty about real-world dosing of comparators (e.g., low uptake of 400 mg cenobamate).
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Q1-2026 Updates
Positive
Negative
Exceptional Phase 3 XTOL-2 Efficacy
XTOL-2 met its primary endpoint with median percent change (MPC) in monthly focal seizure frequency of 53.2% (25 mg), 34.5% (15 mg) versus 10.4% for placebo; placebo-adjusted MPC for 25 mg ~42.8 percentage points. Company described this as exceeding expectations and surpassing prior Phase 2b results.
Read all positive updates
Company Guidance
Xenon guided that, after XTOL‑2 top‑line results announced in March, it plans to submit an NDA for AZK in 2026 (roughly six months after top‑line), expects a standard FDA review (~12 months) plus ~3 months for DEA scheduling, and therefore anticipates a U.S. launch in 2027 or early 2028; the company ended Q1 with $1.3 billion in cash, equivalents and marketable securities (up from $586 million at Dec 31) following a $747.5 million financing and expects this capital to fund operations into 2029. Key program timing guidance included top‑line EXNOVA‑2 Phase 3 MDD results in 2027, continuation of enrollment in EXACT (PGTCS) and other Phase 3 neuropsychiatry studies, and completion of first‑in‑human Phase 1 programs for XEN1701 and XEN1120 later this year with the intent to advance both to Phase II proof‑of‑concept. They also reiterated XTOL‑2 efficacy and safety metrics supporting the filing: median percent change in monthly focal seizure frequency of −53.2% (25 mg), −34.5% (15 mg) vs −10.4% placebo; baseline median 13 seizures/month, median five prior ASMs, >50% on three concomitant ASMs and ~60% who had used cenobamate; OLE 48‑month data showing a 91% reduction in monthly seizures (100% reduction for those on 1–2 ASMs vs 82% for those on three), ~40% seizure‑free ≥12 months and ~25% seizure‑free ≥24 months, RR100 in the double‑blind 25 mg arm 6.5% over 12 weeks (rising to 11.3% over the last 6 weeks and 13.7% over the last 4 weeks), and >800 patient‑years of safety exposure.Xenon Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 7.50M | 0.00 | 0.00 | 9.43M | 18.44M |
| Gross Profit | -78.30M | 4.96M | -2.56M | -167.51M | 9.43M | 18.44M |
| EBITDA | -399.03M | -342.35M | -235.86M | -210.51M | -127.74M | -78.09M |
| Net Income | -383.17M | -345.91M | -234.33M | -182.39M | -125.37M | -78.88M |
Balance Sheet | ||||||
| Total Assets | 1.39B | 981.67M | 798.14M | 964.80M | 754.15M | 572.01M |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 548.89M | 626.90M | 638.08M | 592.09M | 551.77M |
| Total Debt | 7.49M | 7.94M | 9.02M | 10.90M | 10.44M | 8.26M |
| Total Liabilities | 48.99M | 399.91M | 43.24M | 36.88M | 32.65M | 21.97M |
| Stockholders Equity | 1.34B | 581.76M | 754.90M | 927.92M | 721.50M | 550.03M |
Cash Flow | ||||||
| Free Cash Flow | -307.25M | -279.92M | -184.46M | -150.94M | -101.32M | -71.55M |
| Operating Cash Flow | -306.36M | -279.12M | -181.39M | -145.33M | -98.43M | -69.50M |
| Investing Cash Flow | -223.79M | 218.00M | 165.00M | -117.17M | -296.00M | -246.77M |
| Financing Cash Flow | 958.98M | 117.11M | 12.13M | 353.52M | 278.47M | 447.54M |
Xenon Technical Analysis
Neutral
59.70
Price Trends
55.88
Negative
50.87
Positive
45.83
Positive
Market Momentum
-0.81
Positive
36.59
Neutral
22.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XENE, the sentiment is Neutral. The current price of 59.7 is above the 20-day moving average (MA) of 54.28, above the 50-day MA of 55.88, and above the 200-day MA of 45.83, indicating a neutral trend. The MACD of -0.81 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XENE.
Xenon Risk Analysis
Xenon disclosed 73 risk factors in its most recent earnings report. Xenon reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xenon Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $6.39B | -12.53 | -68.16% | ― | ― | -1.22% | |
61 Neutral | $5.00B | -11.79 | -49.23% | ― | -100.00% | -46.29% | |
55 Neutral | $1.95B | -12.93 | -27.92% | ― | ― | 44.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $2.16B | -3.62 | 1566.94% | ― | 13.33% | -3.82% | |
50 Neutral | $5.31B | -13.80 | -163.52% | ― | ― | -35.59% | |
45 Neutral | $3.30B | -6.96 | -71.31% | ― | ― | -259.98% |
* Healthcare Sector Average
XENE
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Xenon Corporate Events
Executive/Board ChangesShareholder Meetings
Xenon Shareholders Approve Directors, Pay and Incentive Plan
Positive
Jun 3, 2026
Xenon held its annual meeting of shareholders, where approximately 93.54% of common shares entitled to vote were represented. Shareholders elected eight directors, including Dawn Svoronos and Gillian Cannon, to serve until the 2027 annual meeting ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Xenon Highlights Positive Phase 3 Azetukalner Seizure Data
Positive
May 7, 2026
Xenon Pharmaceuticals reported first-quarter 2026 results on May 7, highlighting positive Phase 3 X-TOLE2 data for azetukalner in focal onset seizures that exceeded prior studies and underpin plans for a U.S. regulatory filing in the third quarter...
Business Operations and StrategyRegulatory Filings and Compliance
Xenon Expands 2025 Inducement Equity Incentive Plan
Neutral
Apr 13, 2026
On April 7, 2026, Xenon Pharmaceuticals Inc. amended and restated its 2025 Inducement Equity Incentive Plan to increase the maximum number of common shares reserved for issuance from 900,000 to 1,175,000, subject to adjustment. The expanded pool w...
Regulatory Filings and ComplianceShareholder Meetings
Xenon Sets Date for 2026 Annual Shareholder Meeting
Neutral
Mar 13, 2026
Xenon Pharmaceuticals Inc. advised Canadian securities regulators on March 13, 2026 that it has set June 2, 2026 as the date for its 2026 annual meeting of shareholders. The company established April 7, 2026 as the record date for notice, voting a...
Business Operations and StrategyPrivate Placements and Financing
Xenon Strengthens Balance Sheet With Major Equity Offering
Positive
Mar 12, 2026
On March 10, 2026, Xenon Pharmaceuticals Inc. entered into an underwriting agreement for an underwritten public offering of 12,236,843 common shares and pre-funded warrants to purchase 877,194 common shares, priced to the public at $57.00 per shar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.