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Xenon Q1 Loss Narrower Than Expected, Pipeline Development in Focus
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Xenon Pharmaceuticals (XENE - Free Report) reported a loss of 83 cents per share for the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 94 cents. The company had incurred a loss of 62 cents per share in the year-ago quarter.
The company generated revenues of $7.5 million in the first quarter, which marginally missed the Zacks Consensus Estimate of $8 million. In the year-ago quarter, Xenon did not generate any revenues. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company only recognizes periodic collaboration revenues in its top line from its ongoing partnership with Neurocrine Biosciences (NBIX - Free Report) . Revenues in the first quarter of 2025 reflect a milestone payment recognized in connection with the NBIX collaboration.
XENE, in collaboration with Neurocrine, is currently evaluating NBI-921355, a Nav1.2/1.6 inhibitor, in a phase I study as a potential treatment for certain types of epilepsy.
Year to date, shares of Xenon have lost 8.6% compared with the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
XENE's Q1 Results in Detail
In the first quarter, research and development (R&D) expenses increased 38.1% year over year to $61.2 million. The uptick was primarily due to increased expenses related to the company’s azetukalner late-stage epilepsy studies and initiation of the first phase III major depressive disorder (MDD) for the same candidate.
General and administrative expenses were $19 million in the reported quarter, up 28.4% year over year, owing to increased personnel-related costs due to higher employee headcount.
Xenon had cash, cash equivalents and marketable securities worth $691.1 million as of March 31, 2025, compared with $754.4 million as of Dec. 31, 2024. The company expects its existing cash balance to fund its current operating plans, which include the completion of the azetukalner phase III epilepsy studies and fully support late-stage clinical development of azetukalner in MDD and bipolar depression (BPD) into 2027.
XENE's Pipeline Updates
XENE’s lead pipeline candidate, azetukalner, is in late-stage studies for treating focal onset seizures (FOS). Under the phase III epilepsy program, two identical phase III studies, X-TOLE2 and X-TOLE3, are evaluating 15 mg or 25 mg doses of azetukalner, administered with food as adjunctive treatment in patients with FOS. The first top-line data readout from the X-TOLE2 study is now anticipated in early 2026, which was earlier expected in the second half of 2025.
The company is also evaluating azetukalner for primary generalized tonic-clonic seizures in a phase III X-ACKT study, which is currently enrolling patients.
Xenon has also completed a phase II proof-of-concept study on azetukalner called X-NOVA for patients with MDD. Based on the success of the mid-stage study, the company recently initiated the X-NOVA2 study, the first of three planned phase III studies on azetukalner in MDD. The second MDD study, X-NOVA3, is expected to be initiated in mid-2025.
Earlier this year, Xenon announced plans for a late-stage BPD program, with the first of the two azetukalner clinical studies for bipolar I and bipolar II depression set to begin by mid-year. The program aims to address a significant unmet medical need for BPD treatments.
Xenon is currently evaluating multiple preclinical therapeutic candidates targeting Kv7, Nav1.7 and Nav1.1 across various indications, aiming to advance them into clinical development later in 2025.
The company expects to file an investigational new drug application and initiate a phase I study on its lead Nav1.7 candidate, XEN1701, in the third quarter of 2025. Per management, Nav1.7 is an important pain-related target that may be a new class of medicines without the limitations of opioids.
Xenon Pharmaceuticals Inc. Price, Consensus and EPS Surprise
In the past 60 days, estimates for Halozyme’s earnings per share have increased from $5.02 to $5.23 for 2025. During the same time, earnings per share estimates for 2026 have increased from $6.56 to $6.77. Year to date, shares of HALO have rallied 39.2%.
HALO’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 17.60%.
In the past 60 days, estimates for Allogene Therapeutics’ loss per share have narrowed from $1.26 to $1.15 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.34 to $1.17. Year to date, shares of ALLO have plunged 45%.
ALLO’s earnings beat estimates in three of the trailing four quarters while meeting the same on the remaining occasion, the average surprise being 11.70%.
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Xenon Q1 Loss Narrower Than Expected, Pipeline Development in Focus
Xenon Pharmaceuticals (XENE - Free Report) reported a loss of 83 cents per share for the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 94 cents. The company had incurred a loss of 62 cents per share in the year-ago quarter.
The company generated revenues of $7.5 million in the first quarter, which marginally missed the Zacks Consensus Estimate of $8 million. In the year-ago quarter, Xenon did not generate any revenues. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company only recognizes periodic collaboration revenues in its top line from its ongoing partnership with Neurocrine Biosciences (NBIX - Free Report) . Revenues in the first quarter of 2025 reflect a milestone payment recognized in connection with the NBIX collaboration.
XENE, in collaboration with Neurocrine, is currently evaluating NBI-921355, a Nav1.2/1.6 inhibitor, in a phase I study as a potential treatment for certain types of epilepsy.
Year to date, shares of Xenon have lost 8.6% compared with the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
XENE's Q1 Results in Detail
In the first quarter, research and development (R&D) expenses increased 38.1% year over year to $61.2 million. The uptick was primarily due to increased expenses related to the company’s azetukalner late-stage epilepsy studies and initiation of the first phase III major depressive disorder (MDD) for the same candidate.
General and administrative expenses were $19 million in the reported quarter, up 28.4% year over year, owing to increased personnel-related costs due to higher employee headcount.
Xenon had cash, cash equivalents and marketable securities worth $691.1 million as of March 31, 2025, compared with $754.4 million as of Dec. 31, 2024. The company expects its existing cash balance to fund its current operating plans, which include the completion of the azetukalner phase III epilepsy studies and fully support late-stage clinical development of azetukalner in MDD and bipolar depression (BPD) into 2027.
XENE's Pipeline Updates
XENE’s lead pipeline candidate, azetukalner, is in late-stage studies for treating focal onset seizures (FOS). Under the phase III epilepsy program, two identical phase III studies, X-TOLE2 and X-TOLE3, are evaluating 15 mg or 25 mg doses of azetukalner, administered with food as adjunctive treatment in patients with FOS. The first top-line data readout from the X-TOLE2 study is now anticipated in early 2026, which was earlier expected in the second half of 2025.
The company is also evaluating azetukalner for primary generalized tonic-clonic seizures in a phase III X-ACKT study, which is currently enrolling patients.
Xenon has also completed a phase II proof-of-concept study on azetukalner called X-NOVA for patients with MDD. Based on the success of the mid-stage study, the company recently initiated the X-NOVA2 study, the first of three planned phase III studies on azetukalner in MDD. The second MDD study, X-NOVA3, is expected to be initiated in mid-2025.
Earlier this year, Xenon announced plans for a late-stage BPD program, with the first of the two azetukalner clinical studies for bipolar I and bipolar II depression set to begin by mid-year. The program aims to address a significant unmet medical need for BPD treatments.
Xenon is currently evaluating multiple preclinical therapeutic candidates targeting Kv7, Nav1.7 and Nav1.1 across various indications, aiming to advance them into clinical development later in 2025.
The company expects to file an investigational new drug application and initiate a phase I study on its lead Nav1.7 candidate, XEN1701, in the third quarter of 2025. Per management, Nav1.7 is an important pain-related target that may be a new class of medicines without the limitations of opioids.
Xenon Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Xenon Pharmaceuticals Inc. price-consensus-eps-surprise-chart | Xenon Pharmaceuticals Inc. Quote
XENE's Zacks Rank & Stocks to Consider
Xenon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Halozyme Therapeutics (HALO - Free Report) and Allogene Therapeutics (ALLO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Halozyme’s earnings per share have increased from $5.02 to $5.23 for 2025. During the same time, earnings per share estimates for 2026 have increased from $6.56 to $6.77. Year to date, shares of HALO have rallied 39.2%.
HALO’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 17.60%.
In the past 60 days, estimates for Allogene Therapeutics’ loss per share have narrowed from $1.26 to $1.15 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.34 to $1.17. Year to date, shares of ALLO have plunged 45%.
ALLO’s earnings beat estimates in three of the trailing four quarters while meeting the same on the remaining occasion, the average surprise being 11.70%.