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Investing.com -- Xenon Pharmaceuticals Inc. (NASDAQ:XENE) shares tumbled 10.7% after the neuroscience-focused biopharmaceutical company reported first quarter earnings and announced a delay in topline data from a key Phase 3 epilepsy study.
Xenon reported Q1 adjusted earnings per share of -$0.83, beating analyst estimates of -$0.91. Revenue came in at $7.5 million, significantly above the consensus estimate of $1.25 million.
However, investors focused on the company’s announcement that topline data from its Phase 3 X-TOLE2 study of azetukalner in focal onset seizures is now expected in early 2026, representing a modest delay from previous guidance. Patient recruitment for the study is expected to complete in the next few months.
"While this timing represents a modest shift from our prior guidance, we are encouraged that we are nearing the end of this important study which represents a significant milestone for Xenon, getting us one step closer to a potential first commercial product launch," said Ian Mortimer, President and CEO of Xenon.
The company reported progress across its pipeline, including plans to initiate Phase 3 studies in major depressive disorder and bipolar depression mid-year. Xenon also announced the start of a Phase 1 study for XEN1120, a follow-on Kv7 channel opener, and expects to file an IND for XEN1701, its lead Nav1.7 candidate, in Q3 2025.
Xenon ended the quarter with $691.1 million in cash and marketable securities, which it believes will fund operations into 2027.
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