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Xenon
(NASDAQ:XENE)
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Rating:52Neutral
Price Target:
$36.00
▼(-40.42% Downside)
Action:Reiterated
Date:09/19/26
Overall score reflects a strong capital position but weak current fundamentals: substantial and worsening losses with heavy cash burn are the primary drag, and the stock is in a pronounced downtrend technically. Offsetting these, the latest earnings call provided positive near-term catalysts (imminent NDA submission) and emphasized strong liquidity/runway into 2029, which improves outlook despite material regulatory, clinical, and commercialization uncertainties.
Positive Factors
Strong balance sheet
Very low leverage and substantial liquidity provide Xenon with flexibility to fund late-stage trials, regulatory work and launch preparation without immediate dependence on debt financing. Management expects its cash position to support operations into 2029, extending strategic runway.
Negative Factors
Severe operating losses
Xenon remains a development-stage business without a meaningful current revenue base, while losses have expanded sharply. Until a product reaches the market and generates recurring sales, the company must fund substantial research and commercialization costs without operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Very low leverage and substantial liquidity provide Xenon with flexibility to fund late-stage trials, regulatory work and launch preparation without immediate dependence on debt financing. Management expects its cash position to support operations into 2029, extending strategic runway.
Read all positive factors
Xenon (XENE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.42B
Dividend YieldN/A
Average Volume (3M)2.38M
Price to Earnings (P/E)―
Beta (1Y)0.78
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. Volume1,225,957
30 Day Avg. Volume2,376,460
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 Cap1.49
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-65.51
Enterprise Value/Ebitda-12.23
Forecast
1Y Price Target
$70.54Price Target Upside16.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)-4.61
Revenue Forecast (FY)$1.34M
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 | -416.19M | -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
Negative
60.42
Price Trends
47.88
Negative
54.43
Negative
52.48
Negative
Market Momentum
-3.29
Negative
33.74
Neutral
70.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XENE, the sentiment is Negative. The current price of 60.42 is above the 20-day moving average (MA) of 36.12, above the 50-day MA of 47.88, and above the 200-day MA of 52.48, indicating a bearish trend. The MACD of -3.29 indicates Negative momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 70.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XENE.
Xenon Risk Analysis
Xenon disclosed 82 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.40B | 8.77 | 32.39% | ― | 11.75% | 68.42% | |
55 Neutral | $1.62B | -7.45 | -59.36% | ― | -86.20% | -476.63% | |
52 Neutral | $3.42B | -7.46 | -43.98% | ― | -100.00% | -33.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.24B | -8.53 | -29.02% | ― | ― | -23.53% | |
45 Neutral | $862.15M | -8.86 | -46.46% | ― | ― | -3.04% |
* Healthcare Sector Average
XENE
Xenon
35.34
-6.55
-15.64%
ACAD
ACADIA Pharmaceuticals
19.73
-3.26
-14.18%
STOK
Stoke Therapeutics
25.04
-7.96
-24.12%
ANRO
Alto Neuroscience, Inc.
21.97
9.72
79.35%
RAPP
Rapport Therapeutics, Inc.
25.93
-0.55
-2.08%
SPTX
Seaport Therapeutics, Inc.
20.61
0.77
3.88%
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...
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.