Xenon (XENE) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: -10.19%
• Country: US
• Employees: 316
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.83
• Shares Outstanding: 76,733,600
• 10 Day Avg. Volume: 836,165
• 30 Day Avg. Volume: 1,261,753
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 279.87
• Enterprise Value/Gross Profit: -3.19K
• Enterprise Value/Ebitda: -7.21
• 1Y Price Target: $55.64
• Price Target Upside: 82.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 48 Neutral
• Price Target: ―

Xenon's primary strengths lie in its strong financial position and positive clinical development progress, as highlighted in the earnings call. However, the absence of revenue and profitability, along with technical and valuation concerns, weigh heavily on the overall stock score.

Positive Factors

Drug Efficacy

Azetukalner is positioned to become a mainstay in refractory focal epilepsy due to its compelling Phase 2 data and mood stabilization effect.

Market Positioning

Azetukalner is nicely positioned to capture significant share as a second-line therapy given its efficacy, mood benefits, and ease-of-use, in contrast to first-line therapies with mood liabilities.

Negative Factors

Adverse Effects

Visual hallucinations were noted in 14% of participants, which is significantly higher compared to 2% in ezogabine's label.

Clinical Trial Delays

The delay of the X-TOLE2 data in focal onset seizures (FOS) to early 2026 is disappointing, especially with other studies enrolling more rapidly.

Xenon Business Overview & Revenue Model

Company Description

Xenon Pharmaceuticals Inc. (XENE) is a clinical-stage biopharmaceutical company focused on developing innovative therapies to improve the lives of patients with neurological disorders. The company primarily operates in the pharmaceutical and biotechnology sectors, leveraging its proprietary ion channel neurology platform to advance its pipeline of novel therapeutics. Xenon's core products include a range of investigational drugs targeting various neurological conditions, including epilepsy and pain disorders.

How the Company Makes Money

Xenon Pharmaceuticals generates revenue through a combination of collaboration and licensing agreements as well as potential milestone payments and royalties from its partnered programs. The company's revenue model is heavily reliant on strategic partnerships with larger pharmaceutical companies, which provide funding and resources in exchange for rights to develop and commercialize Xenon's drug candidates. These partnerships often involve upfront payments, research funding, and milestone-based payments as the drug candidates advance through clinical trials and regulatory approvals. Additionally, Xenon may earn royalties on future sales of successfully commercialized drugs developed from its proprietary platform.

Xenon Financial Statement Overview

Summary

Xenon is facing significant financial challenges with zero revenue and persistent unprofitability. While the balance sheet appears stable with low debt and strong equity, the negative cash flows and lack of revenue growth are critical issues.

Income Statement

Xenon's income statement shows a consistent decline in revenue, with total revenue dropping to zero in the most recent year. The company consistently reports negative net income, indicating ongoing unprofitability. The absence of revenue growth and negative profit margins are significant concerns.

Balance Sheet

Xenon's balance sheet reflects a strong equity position with a high equity ratio, which suggests financial stability. However, the company has a low return on equity due to consistent losses. The low debt levels are a positive aspect, but the absence of revenue and profitability diminishes the overall financial health.

Cash Flow

The cash flow statement reveals negative free cash flow and operating cash flow, indicating a cash burn situation. While the company has a substantial cash reserve, the inability to generate positive operating cash flow presents a long-term risk unless revenue generation improves.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	9.43M	18.44M	32.17M
Gross Profit	0.00	-167.51M	-96.33M	-57.03M	-18.36M
EBITDA	-235.86M	-210.51M	-127.52M	-78.09M	-27.97M
Net Income	-234.33M	-182.39M	-125.37M	-78.88M	-28.84M
Balance Sheet
Total Assets	798.14M	964.80M	754.15M	572.01M	189.19M
Cash, Cash Equivalents and Short-Term Investments	626.90M	638.08M	592.09M	551.77M	177.00M
Total Debt	9.02M	10.90M	10.44M	8.26M	3.31M
Total Liabilities	43.24M	36.88M	32.65M	21.97M	17.83M
Stockholders Equity	754.90M	927.92M	721.50M	550.03M	171.35M
Cash Flow
Free Cash Flow	-184.46M	-150.94M	-101.32M	-71.55M	-50.76M
Operating Cash Flow	-181.39M	-145.33M	-98.43M	-69.50M	-48.12M
Investing Cash Flow	165.00M	-117.17M	-296.00M	-246.77M	-16.82M
Financing Cash Flow	12.13M	353.52M	278.47M	447.54M	85.80M

Xenon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XENE, the sentiment is Negative. The current price of 30.5 is below the 20-day moving average (MA) of 31.47, below the 50-day MA of 31.38, and below the 200-day MA of 36.55, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 25.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XENE.

Xenon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRUS	61 Neutral	$4.88B	―	-58.66%	―	42.77%	-51.27%
APLS	61 Neutral	$2.90B	―	-108.49%	―	20.02%	33.45%
Sector *	51 Neutral	$7.37B	0.33	-68.94%	2.37%	16.27%	0.42%
SRRK	50 Neutral	$3.45B	―	-106.71%	―	―	-22.34%
XENE	48 Neutral	$2.34B	―	-31.60%	―	―	-10.19%
IMVT	45 Neutral	$2.69B	―	-62.46%	―	―	-43.10%
MLTX	41 Neutral	$3.40B	―	-30.57%	―	―	-147.80%

Xenon Corporate Events

Xenon CFO Resignation Amidst Strong Financial Outlook

On February 24, 2025, Sherry Aulin announced her resignation as CFO of Xenon Pharmaceuticals, effective June 30, 2025, for personal reasons, with no disputes related to the company’s operations. She will continue as an advisor until August 31, 2025, while the company searches for her replacement. Xenon also reported its financial results for 2024 and provided a business update, highlighting its ongoing and planned clinical trials for azetukalner in epilepsy and neuropsychiatric disorders. The company anticipates a catalyst-rich period in the next 12 to 24 months, with multiple regulatory filings and potential commercial launches. Despite a net loss increase in 2024, Xenon maintains a strong cash position to fund operations into 2027.