Xenon Pharmaceuticals XENE reported a loss of 84 cents per share for the fourth quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 89 cents. The company had incurred a loss of 64 cents per share in the year-ago quarter.

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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 for XEN901, now known as NBI-921352. The company did not recognize any revenues in the year-ago quarter as well.

NBI-921352 is a selective Nav1.6 sodium channel inhibitor. Neurocrine is currently evaluating NBI-921352 in a phase II study to treat patients aged 2-21 years with SCN8A developmental and epileptic encephalopathy. Per the terms of the agreement with NBIX, Xenon is eligible to receive certain clinical, regulatory and commercial milestone-based payments, as well as royalties on future sales.

XENE, in collaboration with Neurocrine, is also currently evaluating NBI-921355, a Nav1.2/1.6 inhibitor, as a potential treatment for certain types of epilepsy. In the earnings release, management announced that NBI-921355 has progressed into a phase I clinical study in healthy adult participants, triggering an anticipated $7.5 million milestone payment to Xenon.

XENE’s Q4 Results in Detail

In the fourth quarter of 2024, research and development (R&D) expenses increased 45% to $59.5 million compared with $41.1 million in the year-ago period. The uptick was primarily due to increased expenses related to the company’s azetukalner late-stage epilepsy studies and initiation of the first phase III major depressive disorder (MDD) for the same candidate.

In the past three months, shares of Xenon have lost 10.1% compared with the industry’s 2% decline.Zacks Investment Research

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General and administrative expenses were $18 million in the reported quarter, up 43% year over year. The significant rise was on the grounds of increased personnel-related costs due to higher employee headcount and stock-based compensation expenses, along with an increase in professional and consulting fees.

Xenon had cash, cash equivalents and marketable securities worth $754.4 million as of Dec. 31, 2024, compared with $803.3 million as of Sept. 30, 2024. The company expects its existing cash balance to fundits current operating plans,which include the completion of the azetukalner phase III epilepsy studies and fully supporting late-stage clinical development of azetukalner in MDD and bipolar depression (BPD) into 2027.

Story Continues

XENE’s Full-Year Results

In 2024, Xenon did not recognize any revenues.

The company recorded a loss per share of $3.01 in 2024, narrower than the Zacks Consensus Estimate of a loss of $3.10 per share. In 2023, XENE recorded a loss per share of $2.73.

XENE’s Pipeline Updates

Xenon has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.

XENE is currently developing azetukalner in late-stage studies for treatingfocal 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 is anticipated in the second half of 2025.

The company is also evaluating azetukalner for primary generalized tonic-clonic seizures in a phase III X-ACKT study, which is currently enrolling patients and intends to support potential regulatory submissions in this additional epilepsy indication.

Xenon has also completed a phase II proof-of-concept study on azetukalner called X-NOVA for patients with MDD. Based on the success of the mid-stage study, the company initiated the X-NOVA2 study, the first of three planned phase III studies evaluating azetukalner in patients with MDD, during the reported quarter. The X-NOVA3 study is expected to be initiated around mid-2025.

XENE has also announced plans for a late-stage BPD program, with the first of two azetukalner clinical studies for bipolar I and bipolar II depression. set to begin by mid-year. This decision is driven by a strong scientific foundation, supported by promising clinical data on azetukalner and the Kv7 mechanism in MDD, as well as preclinical research exploring genetic links between BPD and Kv7, along with evidence of Kv7 downregulation in BPD. Additionally, the program aims to address a significant unmet medical need for BPD treatments.

Xenon is also currently collaborating with the Icahn School of Medicine at Mount Sinai to support an ongoing investigator-sponsored phase II proof-of-concept study of azetukalner for the treatment of MDD in approximately 60 subjects. Patient enrollment in the same has been completed and top-line results are anticipated in the first half of 2025.

Furthermore, XENE is currently evaluating multiple preclinical therapeutic candidates targeting Kv7, Nav1.7 and Nav1.1 across various indications, aiming to advance them into clinical development in 2025.

Xenon Pharmaceuticals Inc. Price, Consensus and EPS SurpriseXenon 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 from the sector are Gilead Sciences GILD and BioMarin Pharmaceutical BMRN, 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 30 days, Gilead Sciences’ earnings estimates for 2025 have improved from $7.56 to $7.85 per share. During the same timeframe, the earnings per share for 2026 have improved from $7.82 to $8.17. In the past three months, shares of Gilead Sciences have gained 21%.

GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.

In the past 30 days, estimates for BioMarin Pharmaceutical’s 2025 earnings per share have increased from $4.01 to $4.19. Estimates for 2026 earnings per share have decreased from $5.21 to $5.20 during the same timeframe. In the past three months, BioMarin Pharmaceutical shares have gained 4.7%.

BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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