Xenon Pharmaceuticals XENE reported a loss of $1.17 per share in the first quarter of 2026, matching the Zacks Consensus Estimate. The company had incurred a loss of 83 cents per share in the year-ago quarter.
In the reported quarter, Xenon did not generate any revenues, entirely missing the Zacks Consensus Estimate of $15 million. Due to the lack of a marketed product, the company recognizes only periodic collaboration revenues in its top line from its ongoing partnership with Neurocrine Biosciences NBIX. In the year-ago quarter, XENE recognized $7.5 million in revenues following a milestone payment from Neurocrine Biosciences in connection with the progress of NBI-921355 into a clinical-stage study.
XENE's Q1 Results in Detail
In the first quarter, research and development (R&D) expenses increased 45% year over year to $88.5 million. The uptick was primarily due to increased expenses related to Xenon’s ongoing azetukalner late-stage studies in epilepsy, major depressive disorder (MDD) and bipolar depression (BPD). Costs incurred in supporting the early-stage studies of XEN1701 and XEN1120, as well as increased personnel-related costs, also contributed to higher R&D expenses.
General and administrative expenses totaled $23.8 million in the reported quarter, up 25% year over year due to higher personnel expenses from a larger workforce and increased professional and consulting fees.
Xenon had cash, cash equivalents and marketable securities worth $1,339.6 million as of March 31, 2026, compared to $586.0 million as of Dec. 31, 2025. During the reported quarter, the company raised net proceeds of $130 million through its ATM program and an additional $707.6 million via a public offering. Based on its current operating plans, Xenon expects its existing cash position to support operations into 2029.
Year to date, XENE shares have gained 24.9% against the industry’s 0.2% decline.
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XENE's Pipeline Updates
In March 2026, Xenon announced positive top-line data from the phase III X-TOLE2 study, which evaluated its lead pipeline candidate, azetukalner, for treating focal onset seizures (FOS).
The X-TOLE2 study evaluated the efficacy, safety and tolerability of 15 mg and 25 mg doses of azetukalner, given with food as an add-on treatment in patients with FOS. The study met its primary endpoint, showing a median percent change (MPC) in monthly FOS frequency from baseline to week 12 for both the 15 mg and 25 mg doses of azetukalner versus placebo.
The placebo-adjusted MPC in the 25 mg group was -42.7%, which was better than the data from the earlier phase IIb X-TOLE study, in which the 25 mg dose showed a placebo-adjusted MPC of -34.6% over eight weeks. Treatment with azetukalner was generally well tolerated and demonstrated a safety profile similar to that seen in previous studies.
Xenon plans to submit a new drug application to the FDA seeking approval for azetukalner to treat FOS in the third quarter of 2026. If approved, azetukalner would become the only KV7 potassium channel opener available for treating epilepsy.
The identical phase III X-TOLE3 study is currently enrolling patients and is intended to support potential regulatory submissions for azetukalner for FOS in ex-U.S. jurisdictions. XENE is also evaluating azetukalner for primary generalized tonic-clonic seizures in a phase III X-ACKT study, which is currently enrolling patients.
Xenon’s first two of three planned phase III clinical studies, X-NOVA2 and X-NOVA3, evaluating azetukalner in patients with MDD, are currently underway, with top-line data from X-NOVA2 expected in the first half of 2027.
XENE’s first of two phase III clinical studies, X-CEED, evaluating azetukalner in patients with BPD I or II, is also currently ongoing.
Xenon has initiated two separate early-stage studies evaluating XEN1120 and XEN1701 in healthy adult participants, targeting Kv7 and Nav1.7, respectively. Both studies are expected to be completed in the second half of 2026, potentially supporting the initiation of separate phase II proof-of-concept studies in acute pain.
XENE, in collaboration with Neurocrine Biosciences, 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. Top-line data is expected in 2027.
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 Amarin Corporation AMRN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Amarin’s 2026 loss per share have narrowed from $7.01 to $6.36. Over the same period, loss per share estimates for 2027 have also narrowed from $5.50 to $4.64. AMRN shares have risen 5.9% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 50.02%.
Over the past 60 days, estimates for Liquidia Corporation’s 2026 earnings per share have declined from $2.14 to $1.75. Over the same period, EPS estimates for 2027 have decreased from $3.79 to $2.91. LQDA shares have gained 22.6% year to date.
Liquidia Corporation’s earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining occasions, with the average surprise being 39.38%.
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Free: See Our Top Stock And 4 Runners UpNeurocrine Biosciences, Inc. (NBIX) : Free Stock Analysis Report
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Xenon Pharmaceuticals Inc. (XENE) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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