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Xenon
(NASDAQ:XENE)
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Rating:59Neutral
Price Target:
$67.00
▲(2.42% Upside)
Action:Reiterated
Date:08/07/26
The score is anchored by weak financial performance driven by accelerating losses and substantial cash burn, partially offset by a strong low-leverage balance sheet. Sentiment from the latest earnings call is meaningfully positive due to an on-track NDA filing and multi-year cash runway, while technicals are mildly constructive and valuation metrics remain unattractive given ongoing losses and no dividend.
Positive Factors
Balance Sheet & Cash Runway
A very low-leverage balance sheet and ~$1.2B in liquidity provide durable funding to complete NDA submission, support U.S. launch preparations and multiple late-stage trials. This reduces near-term refinancing risk and gives management optionality to execute commercialization and pipeline programs.
Negative Factors
High Cash Burn & Negative Cash Flow
Extremely large and persistent cash outflows mean the company remains dependent on its cash reserves and potential future financing. Sustained negative FCF can force dilutive raises or cutbacks if trials or commercialization costs accelerate, constraining strategic flexibility despite current liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet & Cash Runway
A very low-leverage balance sheet and ~$1.2B in liquidity provide durable funding to complete NDA submission, support U.S. launch preparations and multiple late-stage trials. This reduces near-term refinancing risk and gives management optionality to execute commercialization and pipeline programs.
Read all positive factors
Xenon (XENE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.32B
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-100.00%
EPS Growth-33.88%
CountryUS
Employees364
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.74
Shares Outstanding96,840,430
10 Day Avg. Volume933,915
30 Day Avg. Volume1,582,546
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 Cap<0.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$78.00Price Target Upside19.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-4.75
Revenue Forecast (FY)$2.34M
Xenon Business Overview & Revenue Model
Company Description
Xenon Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company dedicated to discovering and advancing innovative treatments for individuals living with neurological disorders. The company operates primarily from its headquarters in Burna...
Xenon Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented multiple substantive positive developments: an imminent NDA submission supported by strong Phase 3 efficacy and compelling long-term open-label data, a healthy cash position ($1.2B) providing runway into 2029, advancing early-stage pain programs (including confirmed central exposure for Nav1.7) and active commercial build-out with encouraging HCP feedback. Key risks highlighted include the inherent uncertainty of regulatory review, pending readouts for MDD and pain PoC studies, ongoing payer/pricing discussions, common TEAEs that may affect tolerability at higher doses, and potential competition from future Kv7 entrants. On balance, the company's strengths (efficacy, safety dataset, cash runway, advancing pipeline and commercial preparations) outweigh the outstanding uncertainties and execution risks.Positive Updates
NDA Submission on Track
Completed a productive in-person pre-NDA meeting with FDA and remain on track to submit the New Drug Application for Azetukalner (AZK) later this quarter; management emphasizes alignment with the agency on NDA components.
Negative Updates
Regulatory and Approval Uncertainty
NDA submission is imminent but approval remains subject to FDA review and is not guaranteed; timing and outcome of review introduce execution risk to the planned U.S. launch.
Read all updates
Q2-2026 Updates
Positive
Negative
NDA Submission on Track
Completed a productive in-person pre-NDA meeting with FDA and remain on track to submit the New Drug Application for Azetukalner (AZK) later this quarter; management emphasizes alignment with the agency on NDA components.
Read all positive updates
Company Guidance
Guidance from the call highlighted that Xenon remains on track to submit the NDA for Azetukalner later this quarter and is preparing for a U.S. launch pending approval; the company finished Q2 with $1.2 billion in cash, cash equivalents and marketable securities, which management says funds operations into 2029. Key clinical timelines include top-line X‑NOVA2 (Phase 3 MDD) results expected in the first half of 2027 (X‑NOVA2 is a 450‑subject, ~90%‑powered study targeting ~2–2.5 point HAM‑D separation), five additional AZK Phase 3 studies ongoing (including X‑TOLE3 and X‑ACKT), and near‑term completion of Phase 1 programs for XEN1701 and XEN1120 this year with Phase 2 acute‑pain PoC planned; a second Nav1.7 candidate XEN1720 has entered Phase 1. Clinical data and safety context cited included X‑TOLE2 efficacy versus placebo in a population with a median of five prior ASMs (60% exposed to cenobamate), more than 800 patient‑years of AZK exposure, and X‑TOLE open‑label 48‑month data showing a 91% median reduction in monthly seizure frequency, ~40% ≥12‑month seizure freedom and ~25% ≥2‑year seizure freedom. Commercial readiness milestones include further build‑out of the commercial and payer field teams (payer roles expected filled by year‑end and deployed early next year).Xenon Financial Statement Overview
Summary
Income Statement
14
Very Negative
Balance Sheet
74
Positive
Cash Flow
22
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 | -77.67M | 4.96M | -2.56M | -167.51M | 9.43M | 18.44M |
| EBITDA | -416.75M | -342.35M | -235.86M | -210.51M | -127.74M | -78.09M |
| Net Income | -409.19M | -345.91M | -234.33M | -182.39M | -125.37M | -78.88M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 981.67M | 798.14M | 964.80M | 754.15M | 572.01M |
| Cash, Cash Equivalents and Short-Term Investments | 930.69M | 548.89M | 626.90M | 638.08M | 592.09M | 551.77M |
| Total Debt | 6.42M | 7.94M | 9.02M | 10.90M | 10.44M | 8.26M |
| Total Liabilities | 53.38M | 399.91M | 43.24M | 36.88M | 32.65M | 21.97M |
| Stockholders Equity | 1.24B | 581.76M | 754.90M | 927.92M | 721.50M | 550.03M |
Cash Flow | ||||||
| Free Cash Flow | -338.53M | -279.92M | -184.46M | -150.94M | -101.32M | -71.55M |
| Operating Cash Flow | -337.52M | -279.12M | -181.39M | -145.33M | -98.43M | -69.50M |
| Investing Cash Flow | -637.29M | 218.00M | 165.00M | -117.17M | -296.00M | -246.77M |
| Financing Cash Flow | 958.94M | 117.11M | 12.13M | 353.52M | 278.47M | 447.54M |
Xenon Technical Analysis
Positive
65.42
Price Trends
60.98
Positive
58.48
Positive
51.13
Positive
Market Momentum
0.45
Positive
51.87
Neutral
58.72
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 65.42 is above the 20-day moving average (MA) of 64.71, above the 50-day MA of 60.98, and above the 200-day MA of 51.13, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 58.72 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $8.80B | -14.83 | -69.59% | ― | ― | 1.28% | |
59 Neutral | $6.32B | -13.55 | -43.98% | ― | -100.00% | -33.88% | |
54 Neutral | $3.97B | -7.07 | -94.56% | ― | ― | -203.77% | |
52 Neutral | $2.39B | -6.15 | -57.97% | ― | ― | -19.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $6.55B | -16.03 | -160.19% | ― | ― | -14.40% | |
48 Neutral | $2.65B | -4.52 | 392.35% | ― | 17.50% | -5.66% |
* Healthcare Sector Average
XENE
Xenon
64.23
26.27
69.20%
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Xenon Corporate Events
Business Operations and StrategyFinancial Disclosures
Xenon advances azetukalner toward planned U.S. NDA filing
Positive
Aug 6, 2026
Xenon Pharmaceuticals reported its second-quarter 2026 results on August 6, highlighting strong progress toward a planned third-quarter 2026 U.S. NDA filing for azetukalner in focal onset seizures following a successful pre-NDA meeting with the FD...
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 ...
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.