| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 20 | — | 17.3x | Bottom tier | |
Growth | 5 | -100.0% | 7.1% | Bottom tier | |
Quality | 10 | -46.5% | 4.5% | Bottom tier | |
Safety | 71 | — | 2.6x | Top tier | |
Capital Return | 17 | 0.00% | 0.06% | Bottom tier | |
Momentum | 23 | -9.2% | -1.6% | Bottom tier | |
Sentiment | 86 | 15 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Xenon Pharmaceuticals Inc. is a biopharmaceutical company focused on ion channel modulation-based treatments for neurological diseases. Its lead asset is Azetukalner, or AZK, a Kv7 channel opener under development for focal onset seizures, major depressive disorder, and bipolar depression, alongside the non-opioid pain programs XEN1701 and XEN1720 targeting Nav1.7 and XEN1120 targeting Kv7. The company had not launched its first commercial product as of Q2 FY2026, so the future revenue thesis depends primarily on successful development, regulatory approvals, and subsequent commercialization of these assets.
The most notable financial figure disclosed in the Q2 FY2026 earnings call was $1.2 billion in cash, cash equivalents, and marketable securities, which management expects to fund operations into 2029 under its current plans. The latest EDGAR statements available in the provided data, which are older, show revenue of $16 thousand and a net loss of $8.1 million in Q4 FY2017, as well as annual revenue of $311 thousand, a net loss of $30.7 million, and negative earnings per share of $1.72 in FY2017. The provided data does not include revenue, net income, or margin figures for Q2 FY2026, so a current financial comparison between segments cannot be made.
Xenon's portfolio reflects a heavy concentration on AZK, with efforts to broaden its scope through five additional Phase 3 studies in epilepsy and neuropsychiatric disorders. At the same time, three non-opioid pain programs provide relatively independent opportunities, while the NBI-921355 program in partnership with Neurocrine and the preclinical Nav1.1 program for Dravet syndrome add further depth to the portfolio. The economic value of these programs remains contingent on clinical data and regulatory approvals because the company was still preparing for its first commercial launch in Q2 FY2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $86.5, ranging from a low of $69 to a high of $100, with a consensus rating of “Buy”; the average is approximately 19% above the 52-week range high of $72.66, while the highest target exceeds that high by approximately 38%. However, the absence of a price-to-earnings ratio makes the valuation dependent on the probabilities of AZK's approval, launch, and successful clinical expansion, and the range of targets from $69 to $100 reflects meaningful differences in the assessment of these risks compared with the 52-week range of $35.6–$72.66.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The nearest catalyst is the submission of the NDA for Azetukalner for the treatment of focal onset seizures during Q3 FY2026. Xenon completed an in-person pre-NDA meeting with the FDA and said it reached alignment on the components of the filing. The application is based on a package that includes X-TOLE2 and safety data exceeding 800 patient-years of exposure. Approval itself remains subject to FDA review after the filing is submitted.
X-TOLE2 met its primary endpoint and showed a dose-dependent reduction in focal onset seizures beginning in the first week. The studied population was highly treatment-resistant, having failed a median of five prior medications, and 60% of participants were using cenobamate or had previously tried and discontinued it. The study also showed dose-dependent increases in response rates at the 75%, 90%, and 100% thresholds. In the X-TOLE open-label extension, the reduction in seizure frequency reached 91% among those treated for at least 48 months.
Xenon ended Q2 FY2026 with $1.2 billion in cash, cash equivalents, and marketable securities. Management expects these resources to fund operations into 2029 under its current plans. Planned uses include supporting the U.S. launch of AZK, multiple AZK registration programs, and the maturation of the pain portfolio. This runway remains a management estimate that depends on the operating plan and spending remaining within current assumptions.
Xenon is conducting the X-ACKT study for primary generalized tonic-clonic seizures, alongside X-TOLE3 to support regulatory submissions outside the United States. In neuropsychiatric disorders, the company is enrolling patients in X-NOVA2 and X-NOVA3 for major depressive disorder and X-CEED for bipolar depression. X-NOVA2 includes approximately 450 participants, and the company expects its data in the first half of 2027. Management had not provided a timeline for X-NOVA3 or X-CEED results as of the August 6, 2026 call.
The Phase 1 studies of XEN1701 targeting Nav1.7 and XEN1120 targeting Kv7 are approaching completion during 2026. The company said drug exposure levels support preparing Phase 2 proof-of-concept studies in acute pain, with models such as bunionectomy or abdominoplasty under consideration. XEN1720, a second candidate targeting Nav1.7 with different chemistry, has also begun a Phase 1 single and multiple ascending dose study. The company has not yet finalized the design or specific indication for the Phase 2 studies.
The first risk is that AZK had not received FDA approval as of August 6, 2026, despite completion of the pre-NDA meeting. The depression and pain expansions also still await decisive data, beginning with X-NOVA2 in the first half of 2027, while the pain programs remained in Phase 1. AZK faces more than 20 anti-seizure medications, with the possibility of a fast-following competitor targeting Kv7. No price-to-earnings ratio is available either, making the company's $5.8 billion value sensitive to successful development, approval, and commercial launch.