Xenon (XENE)
NASDAQ:XENE
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Xenon
(NASDAQ:XENE)
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Rating:62Neutral
Price Target:
$58.00
▲(4.37% Upside)
Action:ReiteratedDate:03/24/26
The score is anchored by weak operating and cash-flow performance (large losses and rising burn) despite a strong, low-debt balance sheet. Offsetting factors include constructive price momentum, optimistic clinical/program updates with runway guidance into 2027, and a recent large financing that further strengthens liquidity, while valuation remains constrained by ongoing losses and no dividend.
Positive Factors
Strong balance sheet / low leverage
Very low leverage and substantial equity/assets provide durable financial flexibility to fund late-stage trials and pipeline development. This reduces near-term refinancing pressure, supports multi-year clinical programs, and allows management to prioritize strategic execution over emergency capital raises.
Negative Factors
Large and growing cash burn
Persistent, sizable negative operating and free cash flows indicate the business consumes cash materially to advance programs. If burn remains elevated, the company will face continued financing needs which can dilute shareholders or constrain long-term investments absent non-dilutive revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet / low leverage
Very low leverage and substantial equity/assets provide durable financial flexibility to fund late-stage trials and pipeline development. This reduces near-term refinancing pressure, supports multi-year clinical programs, and allows management to prioritize strategic execution over emergency capital raises.
Read all positive factors
Xenon (XENE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.62B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue GrowthN/A
EPS Growth-38.30%
CountryUS
Employees316
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.31
Shares Outstanding83,190,315
10 Day Avg. Volume2,246,647
30 Day Avg. Volume1,804,546
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 Cap0.96
Enterprise Value/Revenue590.45
Enterprise Value/Gross Profit-62.55
Enterprise Value/Ebitda-12.32
Forecast
1Y Price Target
$75.82Price Target Upside36.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)-4.83
Revenue Forecast (FY)$5.45M
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...
Xenon Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in Xenon's late-stage and early-stage clinical programs, particularly for azetukalner in epilepsy and neuropsychiatric disorders. Financially, the company is well-positioned to support its operations and pipeline development. While challenges exist, such as increased competition and screening hurdles, the positive advancements and robust financial health contribute to an overall optimistic outlook.Positive Updates
Phase III X-TOLE2 Study Completion
The X-TOLE2 study for azetukalner in focal onset seizures successfully completed patient randomization with 380 patients, exceeding the initial target of 360, ensuring robust power across study endpoints.
Negative Updates
Increased Competition in Epilepsy Market
Emerging competitors in the epilepsy market could impact the commercial landscape, though Xenon remains confident in azetukalner's differentiated profile.
Read all updates
Q3-2025 Updates
Positive
Negative
Phase III X-TOLE2 Study Completion
The X-TOLE2 study for azetukalner in focal onset seizures successfully completed patient randomization with 380 patients, exceeding the initial target of 360, ensuring robust power across study endpoints.
Read all positive updates
Company Guidance
In the recent Xenon Pharmaceuticals earnings call, the company provided extensive guidance on their ongoing clinical programs and financial outlook. Xenon highlighted three strategic priorities, including the Phase III X-TOLE2 study of azetukalner for focal onset seizures, with top-line data expected in early 2026. They have successfully randomized 380 patients, exceeding their target of 360, enhancing the study's power. The company is also exploring azetukalner's potential in neuropsychiatric conditions, with Phase III trials in major depressive disorder (MDD) and bipolar depression. Xenon anticipates having sufficient cash to fund operations into 2027, bolstered by a strong balance sheet of $555.3 million as of September 2025. They also discussed early-stage programs, including Nav1.7 and Kv7 ion channel modulators, which are now in Phase I trials. Xenon plans to leverage its ion channel expertise to develop innovative treatments across multiple therapeutic areas.Xenon Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
74
Positive
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.50M | 0.00 | 0.00 | 9.43M | 18.44M |
| Gross Profit | 4.96M | -2.56M | -167.51M | 9.43M | 18.44M |
| EBITDA | -342.35M | -235.86M | -210.51M | -127.74M | -78.09M |
| Net Income | -345.91M | -234.33M | -182.39M | -125.37M | -78.88M |
Balance Sheet | |||||
| Total Assets | 981.67M | 798.14M | 964.80M | 754.15M | 572.01M |
| Cash, Cash Equivalents and Short-Term Investments | 548.89M | 626.90M | 638.08M | 592.09M | 551.77M |
| Total Debt | 7.94M | 9.02M | 10.90M | 10.44M | 8.26M |
| Total Liabilities | 399.91M | 43.24M | 36.88M | 32.65M | 21.97M |
| Stockholders Equity | 581.76M | 754.90M | 927.92M | 721.50M | 550.03M |
Cash Flow | |||||
| Free Cash Flow | -279.92M | -184.46M | -150.94M | -101.32M | -71.55M |
| Operating Cash Flow | -279.12M | -181.39M | -145.33M | -98.43M | -69.50M |
| Investing Cash Flow | 218.00M | 165.00M | -117.17M | -296.00M | -246.77M |
| Financing Cash Flow | 117.11M | 12.13M | 353.52M | 278.47M | 447.54M |
Xenon Technical Analysis
Positive
55.57
Price Trends
45.86
Positive
44.14
Positive
40.05
Positive
Market Momentum
2.93
Positive
62.13
Neutral
22.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XENE, the sentiment is Positive. The current price of 55.57 is above the 20-day moving average (MA) of 51.77, above the 50-day MA of 45.86, and above the 200-day MA of 40.05, indicating a bullish trend. The MACD of 2.93 indicates Positive momentum. The RSI at 62.13 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $4.62B | -10.27 | -55.81% | ― | ― | -38.30% | |
62 Neutral | $5.04B | -10.43 | -65.80% | ― | ― | -27.70% | |
56 Neutral | $2.03B | -22.67 | -32.94% | ― | ― | 9.60% | |
54 Neutral | $5.22B | -13.37 | -145.91% | ― | ― | -31.71% | |
52 Neutral | $3.84B | -6.36 | -48.04% | ― | ― | -126.16% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.92B | -3.94 | -1024.42% | ― | 20.63% | 8.09% |
* Healthcare Sector Average
XENE
Xenon
55.53
21.07
61.14%
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Xenon Corporate Events
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...
Private Placements and FinancingRegulatory Filings and Compliance
Xenon Pharmaceuticals Refreshes $400 Million ATM Equity Program
Neutral
Feb 27, 2026
On February 27, 2026, Xenon Pharmaceuticals Inc. filed a prospectus supplement with the U.S. Securities and Exchange Commission to register $400 million of common shares under its existing at-the-market equity offering sales agreement with Jefferi...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Xenon Highlights 2025 Results and Expands Late-Stage Pipeline
Positive
Feb 26, 2026
On Feb. 26, 2026, Xenon Pharmaceuticals reported its fourth-quarter and full-year 2025 results, highlighting heavy investment in late-stage development of azetukalner across epilepsy and neuropsychiatric indications. The company is advancing multi...
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.