Xenon Q4 Loss Narrower Than Expected, Pipeline Development in Focus

Core Viewpoint - Xenon Pharmaceuticals reported a narrower loss per share for Q4 2024 compared to the previous year, but did not generate any revenues due to the absence of marketed products [1][2][8] Financial Performance - The company reported a loss of 84 cents per share in Q4 2024, which is an improvement from a loss of 64 cents per share in the same quarter last year [1] - For the full year 2024, Xenon recorded a loss per share of $3.01, which is narrower than the Zacks Consensus Estimate of a loss of $3.10 [8] - Research and development (R&D) expenses increased by 45% to $59.5 million in Q4 2024, up from $41.1 million in the prior year [5] - General and administrative expenses rose by 43% year over year to $18 million, driven by higher personnel costs and consulting fees [6] Revenue Generation - Xenon did not recognize any revenues in Q4 2024 or in the year-ago quarter, primarily due to the lack of marketed products [2][8] - The company has ongoing collaboration revenues from its partnership with Neurocrine Biosciences for NBI-921352, but no revenues were recognized from this collaboration in the reported quarter [2][3] Pipeline Development - Xenon is developing azetukalner for treating focal onset seizures and has initiated phase III studies, with top-line data expected in the second half of 2025 [10] - The company is also evaluating azetukalner for primary generalized tonic-clonic seizures and has plans for a late-stage bipolar depression program [12][14] - A phase II proof-of-concept study for azetukalner in major depressive disorder (MDD) has been completed, leading to the initiation of phase III studies [13][15] - The company is collaborating with the Icahn School of Medicine for an ongoing phase II study of azetukalner in MDD [15] Cash Position - As of December 31, 2024, Xenon had cash, cash equivalents, and marketable securities totaling $754.4 million, down from $803.3 million as of September 30, 2024 [7] - The company expects its cash balance to support its operating plans through 2027, including ongoing clinical studies [7]