A month has gone by since the last earnings report for Xenon Pharmaceuticals (XENE Quick QuoteXENE - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Xenon Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Xenon Q2 Loss Wider Than Expected, Pipeline Development in Focus

Xenonreported a loss of $1.07 per share for the second quarter of 2025, wider than the Zacks Consensus Estimate of a loss of $1.03. The company had incurred a loss of 75 cents per share in the year-ago quarter.

In the reported quarter, Xenon did not generate any revenues. Due to the absence of a marketed product, the company only recognizes periodic collaboration revenues in its top line from its ongoing partnership with NeurocrineBiosciences. The company did not recognize any revenues in the year-ago quarter as well.

XENE's Q2 Results in Detail

In the second quarter, research and development (R&D) expenses increased 51% year over year to $75 million. The uptick was primarily due to increased expenses related to the company’s ongoing azetukalner late-stage studies in epilepsy and MDD, start-up costs for a phase III BPD study of azetukalner, and higher personnel expenses from a larger workforce.

General and administrative expenses totaled $19.2 million in the reported quarter, relatively flat year over year.

Xenon had cash, cash equivalents and marketable securities worth $624.8 million as of June 30, 2025, compared with $691.1 million as of March 31, 2025. 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 supporting late-stage clinical development of azetukalner in MDD and BPD into 2027.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Xenon Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Xenon Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Xenon Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Intellia Therapeutics, Inc. (NTLA Quick QuoteNTLA - Free Report) , a stock from the same industry, has gained 9.4%. The company reported its results for the quarter ended June 2025 more than a month ago.

Intellia Therapeutics reported revenues of $14.24 million in the last reported quarter, representing a year-over-year change of +104.6%. EPS of -$0.99 for the same period compares with -$1.31 a year ago.

For the current quarter, Intellia Therapeutics is expected to post a loss of $1.01 per share, indicating a change of +24.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.

Intellia Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.