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Xenon (XENE)
NASDAQ:XENE
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Xenon
(NASDAQ:XENE)
43Neutral
Positive Factors
Drug Development
Xenon Pharmaceuticals is making progress on its major depressive disorder program and initiating work in bipolar depression, which shows potential for new market opportunities.
Financial Performance
Xenon ended the quarter with $754 million in cash, which management believes should fund operations into 2027.
Negative Factors
Leadership Changes
XENE shares are under pressure most likely due to news of the CFO departing.
Xenon (XENE) vs. S&P 500 (SPY)
Market Cap
$2.62B
Dividend YieldN/A
Average Volume (3M)508.57K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue GrowthN/A
EPS Growth-10.19%
CountryUS
Employees259
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.01
Shares Outstanding76,542,810
10 Day Avg. Volume641,356
30 Day Avg. Volume508,568
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-12.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.11Price Target Upside55.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Xenon Business Overview & Revenue Model
Company DescriptionXenon Pharmaceuticals Inc. (XENE) is a clinical-stage biopharmaceutical company focused on developing innovative therapies to improve the lives of patients with neurological disorders. The company primarily operates in the pharmaceutical and biotechnology sectors, leveraging its proprietary ion channel neurology platform to advance its pipeline of novel therapeutics. Xenon's core products include a range of investigational drugs targeting various neurological conditions, including epilepsy and pain disorders.
How the Company Makes MoneyXenon 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
Xenon is facing significant financial challenges with a lack of revenue, persistent losses, and negative cash flows. While the balance sheet shows a strong equity position, these financial concerns raise sustainability issues.Income Statement
Xenon's income statement shows a consistent decline in revenue, with total revenue dropping to zero in the most recent year. The company consistently reports negative net income, indicating ongoing unprofitability. The absence of revenue growth and negative profit margins are significant concerns.20
Very Negative
Balance Sheet
Xenon's balance sheet reflects a strong equity position with a high equity ratio, which suggests financial stability. However, the company has a low return on equity due to consistent losses. The low debt levels are a positive aspect, but the absence of revenue and profitability diminishes the overall financial health.40
Negative
Cash Flow
The cash flow statement reveals negative free cash flow and operating cash flow, indicating a cash burn situation. While the company has a substantial cash reserve, the inability to generate positive operating cash flow presents a long-term risk unless revenue generation improves.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 9.43M | 18.44M | 32.17M | Gross Profit |
| 0.00 | -167.51M | -96.33M | -57.03M | -18.36M | EBIT |
| -279.30M | -214.05M | -129.14M | -78.99M | -31.30M | EBITDA |
| -279.30M | -210.51M | -127.52M | -78.09M | -27.97M | Net Income Common Stockholders |
| -234.33M | -182.39M | -125.37M | -78.88M | -28.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 626.90M | 638.08M | 592.09M | 551.77M | 177.00M | Total Assets |
| 798.14M | 964.80M | 754.15M | 572.01M | 189.19M | Total Debt |
| 9.02M | 10.90M | 10.44M | 8.26M | 3.31M | Net Debt |
| -133.70M | -137.74M | -46.81M | -167.43M | -41.69M | Total Liabilities |
| 43.24M | 36.88M | 32.65M | 21.97M | 17.83M | Stockholders Equity |
| 754.90M | 927.92M | 721.50M | 550.03M | 171.35M |
| Cash Flow | Free Cash Flow | |||
| -181.39M | -150.94M | -101.32M | -71.55M | -50.76M | Operating Cash Flow |
| -181.39M | -145.33M | -98.43M | -69.50M | -48.12M | Investing Cash Flow |
| 165.00M | -117.17M | -296.00M | -246.77M | -16.82M | Financing Cash Flow |
| 12.13M | 353.52M | 278.47M | 447.54M | 85.80M |
Xenon Technical Analysis
Negative
34.76
Price Trends
38.88
Negative
40.28
Negative
39.99
Negative
Market Momentum
-1.08
Positive
35.18
Neutral
28.84
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 34.76 is below the 20-day moving average (MA) of 37.75, below the 50-day MA of 38.88, and below the 200-day MA of 39.99, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 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 71 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
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.77B | 42.25 | 19.71% | ― | 52.97% | ― | |
54 Neutral | $3.55B | ― | -214.50% | ― | 29.01% | 23.93% | |
49 Neutral | $5.25B | ― | -93.03% | ― | -10.48% | -18.79% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
48 Neutral | $3.72B | ― | -19.20% | ― | -89.95% | -123.71% | |
43 Neutral | $2.62B | ― | -27.85% | ― | ― | -10.19% | |
42 Neutral | $2.98B | ― | -17.90% | ― | ― | -10.27% |
* Healthcare Sector Average
Performance Comparison
XENE
Xenon
34.76
-10.32
-22.89%
IONS
Ionis Pharmaceuticals
33.03
-10.13
-23.47%
SRPT
Sarepta Therapeutics
100.71
-21.25
-17.42%
RARE
Ultragenyx Pharmaceutical
38.33
-10.22
-21.05%
VKTX
Viking Therapeutics
26.52
-45.44
-63.15%
CRSP
Crispr Therapeutics AG
42.37
-32.41
-43.34%
Xenon Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.27% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall. Xenon Pharmaceuticals demonstrated significant progress in its clinical development programs, including plans to expand azetukalner into new indications such as bipolar depression. The company is also in a strong financial position to support its pipeline and strategic goals. However, challenges in enrolling patients for the PGTC study and the announced departure of CFO Sherry Aulin were noted.Highlights
Progress in Clinical Development Programs
Xenon Pharmaceuticals made significant advancements in its clinical development programs, including the Phase 3 epilepsy program and the launch of a Phase 3 MDD program. The company plans to initiate a registrational program for azetukalner in bipolar depression.
Strong Financial Position
Xenon reported cash and cash equivalents and marketable securities of $754.4 million, anticipating having sufficient cash to fund operations into 2027.
Promising Results from Azetukalner Studies
Azutukalner showed sustained monthly reduction in seizure frequency of approximately 85% at month 36 in epilepsy patients, with impressive seizure freedom rates.
Expansion into Bipolar Depression
Plans to initiate a registrational program studying the use of azetukalner in bipolar depression based on strong scientific rationale and market research.
Positive Market Research Feedback
Market research with prescribing psychiatrists showed interest in azetukalner’s profile for bipolar depression, considering its safety profile, novel mechanism of action, and potential benefits on anhedonia.
Lowlights
Challenges in PGTC Enrollment
Enrollment in the primary generalized tonic-clonic seizures (PGTC) study is challenging due to its less prevalent patient population and the need for immediate intervention in some cases.
CFO Departure
Announcement of Sherry Aulin stepping down as CFO later this year for personal reasons, although a smooth transition is planned.
Company Guidance
During the Xenon Pharmaceuticals Q4 2024 earnings call, the company provided detailed guidance for the upcoming year. They anticipate a top-line data readout for their first Phase 3 epilepsy study in the second half of 2025. Xenon expects to file a New Drug Application (NDA) based on this data. The company outlined strategic priorities, including broadening the indication of their lead asset azetukalner in epilepsy and neuropsychiatric disorders such as bipolar depression, with plans to initiate a registrational program mid-year. They disclosed preclinical advancements in their Kv7 and Nav1.7 programs, aiming for multiple regulatory filings in 2025. Xenon also projects having sufficient cash reserves to fund operations into 2027, underscoring strong fiscal management.Xenon Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Xenon CFO Resignation Amidst Strong Financial Outlook
Neutral
Feb 27, 2025
On February 24, 2025, Sherry Aulin announced her resignation as CFO of Xenon Pharmaceuticals, effective June 30, 2025, for personal reasons, with no disputes related to the company’s operations. She will continue as an advisor until August 31, 2025, while the company searches for her replacement. Xenon also reported its financial results for 2024 and provided a business update, highlighting its ongoing and planned clinical trials for azetukalner in epilepsy and neuropsychiatric disorders. The company anticipates a catalyst-rich period in the next 12 to 24 months, with multiple regulatory filings and potential commercial launches. Despite a net loss increase in 2024, Xenon maintains a strong cash position to fund operations into 2027.
Executive/Board Changes
Xenon Pharmaceuticals’ CCO Departure and Consultancy Role
Neutral
Jan 17, 2025
On January 17, 2025, Christopher Von Seggern stepped down as Chief Commercial Officer of Xenon Pharmaceuticals Inc. and departed from the company. In connection with his departure, Von Seggern signed a Separation Agreement receiving severance and benefits as per his original offer letter, as well as a 2024 annual bonus. Additionally, he will act as a consultant for the company until May 1, 2025, during which time his equity awards will continue to vest, with the exercise period extending until August 1, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.