Xenon (XENE) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: N/A
• Average Volume (3M): 790.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: N/A
• EPS Growth: -38.30%
• Country: US
• Employees: 316
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.15
• Shares Outstanding: 77,275,000
• 10 Day Avg. Volume: 916,382
• 30 Day Avg. Volume: 790,305
• PEG Ratio: -1.27
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.55
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $54.09
• Price Target Upside: 31.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $46.00 ▲(11.60% Upside)

The score is driven primarily by weak financial performance (large losses and heavy cash burn), partially offset by an optimistic earnings-call outlook and runway guidance into 2027, plus supportive technical uptrend. Valuation remains constrained by negative earnings and lack of dividend support.

Positive Factors

Strong Financial Position

Xenon's substantial cash reserves ensure operational funding into 2027, providing financial stability and supporting long-term strategic initiatives.

Clinical Development Progress

Advancements in clinical trials, including Phase 3 programs, enhance Xenon's pipeline potential, supporting future growth and market expansion.

Expansion into New Indications

Expanding azetukalner into bipolar depression diversifies Xenon's therapeutic offerings, potentially increasing market share and revenue streams.

Negative Factors

Zero Revenue and Unprofitability

The absence of revenue and ongoing losses threaten Xenon's long-term viability, necessitating successful product commercialization to achieve profitability.

Negative Cash Flow

Persistent negative cash flow highlights operational inefficiencies and the need for revenue generation to sustain long-term business operations.

CFO Departure

The CFO's departure introduces potential leadership instability, impacting strategic financial planning and execution during a critical growth phase.

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 that is Phase III clinical trials for the treatment of KCNQ2 developmental and epilepsy encephalopathy; and XEN1101, A Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other potential indications, including adult focal epilepsy; and XEN007, A central nervous system-acting calcium channel modulator, which is in Phase II clinical trials. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy; and with Flexion Therapeutics, Inc. to develop PCRX301 (XEN402, a Nav1.7 inhibitor) for the treatment of post-operative pain. Xenon Pharmaceuticals Inc. was incorporated in 1996 and is headquartered in Burnaby, Canada.

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

Strong balance sheet with minimal leverage (debt-to-equity ~0.01) and substantial equity, but operating performance remains very weak with large losses (TTM net loss -$306.3M) and heavy ongoing cash burn (TTM FCF -$253.3M), creating runway and funding risk despite solid capitalization.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modest ($7.5M) and profitability remains deeply negative, with a large net loss (-$306.3M) and very weak operating performance (EBIT of -$340.8M). Revenue growth is flat in the latest period and revenue was effectively absent in several annual periods, highlighting limited commercial scale today. The key positive is that losses have at times been smaller than earlier periods (e.g., 2023 vs. 2024/TTM volatility), but overall earnings power is still firmly negative.

Balance Sheet

The balance sheet is conservatively levered, with very low debt relative to equity (TTM debt-to-equity ~0.01) and substantial equity backing ($559.5M TTM). Total assets remain sizable ($607.8M TTM), which provides financial flexibility for a biotech profile. The main weakness is persistent negative returns on equity (TTM ROE about -38%), reflecting ongoing losses that continue to erode the capital base over time.

Cash Flow

Cash burn is heavy and persistent: TTM operating cash flow is -$252.0M and free cash flow is -$253.3M, indicating significant ongoing funding needs. Free cash flow is roughly in line with net loss (free cash flow to net income ~1.01), suggesting losses are largely translating into cash outflow rather than being masked by non-cash items. A positive datapoint is the strong TTM free-cash-flow growth figure, but absolute cash flow remains meaningfully negative and volatile year-to-year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.50M	0.00	0.00	9.43M	18.44M	32.17M
Gross Profit	-70.19M	-2.56M	-167.51M	9.43M	18.44M	32.17M
EBITDA	-332.10M	-235.86M	-210.51M	-127.74M	-78.09M	-27.97M
Net Income	-306.33M	-234.33M	-182.39M	-125.37M	-78.88M	-28.84M
Balance Sheet
Total Assets	607.84M	798.14M	964.80M	754.15M	572.01M	189.19M
Cash, Cash Equivalents and Short-Term Investments	462.27M	626.90M	638.08M	592.09M	551.77M	177.00M
Total Debt	8.33M	9.02M	10.90M	10.44M	8.26M	3.31M
Total Liabilities	48.33M	43.24M	36.88M	32.65M	21.97M	17.83M
Stockholders Equity	559.51M	754.90M	927.92M	721.50M	550.03M	171.35M
Cash Flow
Free Cash Flow	-253.29M	-184.46M	-150.94M	-101.32M	-71.55M	-50.76M
Operating Cash Flow	-252.02M	-181.39M	-145.33M	-98.43M	-69.50M	-48.12M
Investing Cash Flow	253.80M	165.00M	-117.17M	-296.00M	-246.77M	-16.82M
Financing Cash Flow	15.71M	12.13M	353.52M	278.47M	447.54M	85.80M

Xenon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 41.22 is below the 20-day moving average (MA) of 43.62, below the 50-day MA of 42.46, and above the 200-day MA of 36.74, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 19.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XENE.

Xenon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XENE	59 Neutral	$3.19B	―	-45.14%	―	―	-38.30%
IMVT	56 Neutral	$5.30B	-9.30	-95.93%	―	―	-27.70%
SRRK	55 Neutral	$4.25B	-12.82	-218.04%	―	―	-31.71%
VKTX	52 Neutral	$3.58B	―	-29.23%	―	―	-126.16%
MLYS	52 Neutral	$2.62B	-11.20	-42.14%	―	―	9.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RARE	46 Neutral	$2.24B	-3.91	-325.76%	―	20.63%	8.09%

Xenon Corporate Events

Xenon Expands 2025 Equity Incentive Plan

On November 24, 2025, Xenon Pharmaceuticals Inc. amended its 2025 Inducement Equity Incentive Plan to increase the number of shares reserved for issuance from 775,000 to 900,000. This adjustment is intended to facilitate the granting of various stock-related incentives to new or returning employees without requiring shareholder approval, in line with Nasdaq Listing Rule 5635(c)(4).

The most recent analyst rating on (XENE) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Xenon stock, see the XENE Stock Forecast page.

Xenon Reports Q3 2025 Financial Results and Progress

Xenon Pharmaceuticals reported its third-quarter 2025 financial results, highlighting significant progress in its clinical programs. The company completed patient randomization for its Phase 3 X-TOLE2 study in focal onset seizures (FOS) and anticipates topline data in early 2026. Additionally, Xenon is advancing its Phase 3 studies in major depressive disorder (MDD) and bipolar depression (BPD), while early-stage studies for pain treatments are underway. Financially, the company reported a net loss of $90.9 million for the quarter, driven by increased research and development expenses related to its azetukalner program.

The most recent analyst rating on (XENE) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Xenon stock, see the XENE Stock Forecast page.