Xenon Q3 Loss Narrower Than Expected, Pipeline Development in Focus

Xenon Pharmaceuticals XENE reported a loss of $1.15 per share for the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $1.16. The company had incurred a loss of 81 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 Neurocrine Biosciences NBIX. The company did not recognize any revenues in the year-ago quarter as well.

XENE's Q3 Results in Detail

In the third quarter, research and development (R&D) expenses increased 35% year over year to $77.1 million. The uptick was primarily due to increased expenses related to the company’s ongoing azetukalner late-stage studies in epilepsy and major depressive disorder (MDD), start-up costs for the azetukalner phase III bipolar depression (BPD) program, and higher personnel expenses from a larger workforce.

General and administrative expenses totaled $19.3 million in the reported quarter, up 16% year over year due to an increase in professional and consulting fees.

Xenon had cash, cash equivalents and marketable securities worth $555.3 million as of Sept. 30, 2025, compared with $624.8 million as of June 30, 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.

Year to date, XENE shares have gained 4.9% compared with the industry’s 12% growth.

XENE's Pipeline Updates

Xenon’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, which recently completed patient enrollment, is anticipated in early 2026. The 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.

XENE’s first of two phase III clinical studies, X-CEED, to evaluate azetukalner in patients with BPD I and BPD II, is also currently ongoing.

Xenon has initiated two separate early-stage studies evaluating XEN1120 and XEN1701, targeting Kv7 and Nav1.7, respectively, for a range of therapeutic indications, including seizure disorders, pain, and neuropsychiatric disorders, such as MDD and BPD.

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. Earlier this year, Xenon received a $7.5 million milestone payment from Neurocrine Biosciences in connection with the progress of NBI-921355 into a clinical-stage study.

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 Beam Therapeutics BEAM and Amicus Therapeutics FOLD, 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 Beam Therapeutics' loss per share have narrowed from $4.36 to $4.23 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.41 to $4.21. Year to date, shares of BEAM have lost 2.2%.

Beam Therapeutics’ earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average negative surprise being 2.62%.

In the past 60 days, estimates for Amicus Therapeutics’ earnings per share have remained constant at 31 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 5.9%.

Amicus Therapeutics’ earnings beat estimates in one of the trailing four quarters, missing the mark thrice, with the average negative surprise being 24.38%.

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