XENE Stock is back on your radar with new clinical results

Biopharmaceutical company specializing in neurology Xenon Pharmaceuticals (NASDAQ:XENE) does not have a giant market capitalization, but offers ambitious clinical programs. When it comes to XENE stock, the stock price has drifted sideways for a long time – but now the trajectory is definitely on the upside.

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To recap, Xenon specializes in areas where unmet medical needs are high, with a focus on epilepsy. The company’s flagship product is XEN1101, which is designed to treat epilepsy, major depressive disorder (MDD) and potentially other neurological disorders.

Xenon also has other products in the works. However, XENE stock traders had been watching closely, in anticipation of a clinical update on XEN1101.

The company provided a financial update, which included a mix of good news and less good news. However, what really got the ball rolling was Xenon’s announcement about XEN1101, which should be seen as a potential breakthrough for stakeholders in the company.

XENE Stock at a glance

The first feature of the XENE stock that is worth mentioning is that it has a 5-year monthly beta of 1.4. This means that it has moderate volatility so please only use small position sizes with this stock.

Volatility can arise at unexpected times and very suddenly. The market has a way to lull investors into a feeling of complacency, before rapidly moving asset prices.

In the case of XENE stock, it stayed in a range for six months, between $ 16 and $ 20. This happened from March to the end of September.

Then, without warning, the Xenon share price soared like a rocket in early October. It is possible that Reddit traders were involved, but the most obvious driver was a news-based catalyst.

Within days, XENE’s stock doubled from $ 16 to $ 32. As the stock has effectively been reassessed by the trading community, it is now necessary to modify our price targets.

Always remember that the trend is your friend – and the trend with Xenon is definitely on the rise. In fact, $ 40 is now a realistic goal in 2021, followed by $ 43.50 if momentum persists.

Financial highlights and challenges

It is important to provide a balanced picture when reporting on a business that can be invested.

In most cases, there will be both good news and areas for improvement. This is the case with Xenon Pharmaceuticals, which recently provided a quarterly financial report and company update with mixed results.

In the category of good news, Xenon demonstrated the improvement in its capital position.

Specifically, the company had cash and cash equivalents and marketable securities totaling $ 260.5 million as of June 30, 2021. This compares quite favorably with the $ 177 million recorded as of December 31, 2020.

With this, Xenon expects to have sufficient liquidity to fund its operations until 2023 (excluding revenue generated from existing partnerships or potential new partnership agreements).

Now for the top and bottom results. For the second quarter of 2021, Xenon Pharmaceuticals generated total revenue of $ 2.2 million, which is not bad.

Unfortunately, the company also posted a loss in net income for the quarter. This is explained to some extent by the increase in research and development costs, as well as general and administrative costs.

Convincing first-rate results

It is therefore the overall financial situation, which has positive points but which also leaves room for improvement.

At the same time, there is some exciting news to report, related to XEN1101. Most recently, Xenon Pharmaceuticals disclosed the first positive results of a phase 2b X-TOLE clinical trial, which evaluated the clinical efficacy, safety and tolerability of XEN1101.

The result has been very encouraging. Apparently, XEN1101 demonstrated a statistically significant reduction in the frequency of focal seizures compared to placebo.

The median reduction in monthly focal seizure frequency with 25 milligram doses of XEN1101 was found to be 52.8% compared to 18.2% with placebo. “With these compelling first results, we look forward to working with the FDA to plan an accelerated development path in the future,” commented Christopher Kenney, medical director of Xenon.

Takeaway meals

Hopefully Xenon will announce higher income and lower spending in the next fiscal update, leading to a positive earnings profile. Therefore, XENE stock traders should closely monitor the company’s financial updates.

Meanwhile, they can prepare for further breakthroughs in seizure treatment as XEN1101 advances towards regulatory approval.

As of the publication date, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) positions in the securities mentioned in this article.

The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Louis Navellier, who has been called “one of the most important fund managers of our time”, broke the silence by this shocking ‘say it all’ video… Exposing one of the most shocking events in our country’s history… and the only move every American has to make today.

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