NASDAQ$XENE

Xenon Pharmaceuticals Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Xenon Pharmaceuticals' financial position strengthened and clinical programs progressed.

Xenon Pharmaceuticals reported a net loss of $31.2 million for the second quarter of 2022, with revenue of $0.5 million. The company's cash and cash equivalents and marketable securities totaled $788.2 million, expected to fund operations into 2026. Key clinical programs, including XEN1101 for epilepsy and major depressive disorder, are advancing, with Phase 3 trials planned or underway.

  • Xenon remains on track to initiate the XEN1101 Phase 3 program within second half of this year
  • Cash runway extended into 2026 following successful completion of equity offering in June
  • FDA aligned on key elements of the Phase 3 program to support a New Drug Application (NDA) submission for XEN1101
  • Phase 2 ‘X-NOVA’ study is underway examining XEN1101 in major depressive disorder

Headline financials

Total Revenue

$536K

Previous: $2.22M-75.8%
EPS (adj)

-$0.55

Previous: -$0.51-7.8%
Weighted Avg Shares

56.2M

No prior period
Capital Expenditures

-$756K

Previous: -$1.31M+42.4%
Free Cash Flow

-$31.9M

Previous: -$23.4M-36.3%
Net Income

-$31.2M

Previous: -$22.1M-40.9%
Operating Income

-$30.3M

Previous: -$22.5M-34.7%
Gross Profit

-$21.6M

Previous: $1.54M-1506.0%
Cash & Equivalents

$788M

Previous: $82.9M+850.5%
Total Assets

$807M

Previous: $275M+193.9%
Stock-Based Comp

$5.21M

Previous: $2.7M+92.6%

Revenue & EPS history

Xenon Pharmaceuticals · Revenue · Quarterly

$536K

Q2 2022-75.8%vs Q2 2021
Beat estimate in 3 of 11 quarters(27%)
ActualEstimate

Forward guidance

Xenon anticipates having sufficient cash to fund operations into 2026, excluding any revenue generated from existing partnerships or potential new partnering arrangements. The company plans to initiate two identical Phase 3 clinical trials called X-TOLE2 and X-TOLE3, which are designed closely after the Phase 2b X-TOLE clinical trial.

Tailwinds

  • Sufficient cash to fund operations into 2026
  • Advancing a novel product pipeline of neurology therapies to address areas of high unmet medical need, with a focus on epilepsy
  • Plans to submit an NDA upon completion of the first XEN1101 Phase 3 clinical trial (X-TOLE2), if successful
  • Alignment was obtained with the FDA at the EOP2 meeting on key elements of a single Phase 3 clinical trial to pursue an additional epilepsy indication of primary generalized tonic clonic seizures (PGTCS)
  • XEN496, a Kv7 potassium channel opener, is a proprietary pediatric formulation of the active ingredient ezogabine being developed for the treatment of KCNQ2 developmental and epileptic encephalopathy (KCNQ2-DEE).

Headwinds

  • Clinical trials may not demonstrate safety and efficacy of any of our or our collaborators’ product candidates
  • Promising results from pre-clinical development activities or early clinical trial results may not be replicated in later clinical trials
  • Our assumptions regarding our planned expenditures and sufficiency of our cash to fund operations may be incorrect
  • Any of our or our collaborators’ product candidates, including XEN1101 may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable
  • Regulatory agencies may impose additional requirements or delay the initiation of clinical trials

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

39%

19 / 49 earnings

Positive

+15.8%

Q2 2018

Best reaction

-17.5%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-6.1%-11.8%
Q4 2025-3.7%-4.2%+21.3%
Q3 2025-4.9%-7.0%+8.5%
Q2 2025+5.5%+12.1%+9.1%
Q1 2025+2.3%+0.7%+5.7%
Q4 2024-3.4%-3.0%-10.6%
Q3 2024-4.8%-9.6%-10.5%
Q1 2024-5.6%-5.5%-12.2%
Q4 2023-2.1%-3.8%-10.0%
Q3 2023-5.6%-6.6%+20.6%
Q2 2023+8.6%+6.2%+7.9%
Q1 2023-3.2%-5.5%+0.0%
Q4 2022-5.3%-5.9%-9.3%
Q3 2022-4.9%-1.0%+5.1%
Q2 2022+0.1%-4.4%-3.3%
Q1 2022+5.9%+17.1%+16.7%
Q4 2021+3.3%-4.6%-3.6%
Q3 2021-10.1%-10.1%-26.7%
Q2 2021+6.3%+5.6%+3.9%
Q1 2021-4.0%-4.5%+4.6%
Q4 2020+8.2%+6.6%-4.2%
Q3 2020-2.3%+1.1%-0.4%
Q2 2020-2.1%-3.6%-1.9%
Q1 2020+4.3%-3.6%-9.4%
Q4 2019-9.3%-18.7%-10.3%
Q3 2019+0.9%-0.2%+53.9%
Q2 2019+0.6%+4.0%+10.2%
Q1 2019-4.6%-6.6%+8.7%
Q4 2018+7.3%+6.3%+18.8%
Q3 2018-5.7%-9.7%-29.4%
Q2 2018+15.8%+23.7%+38.4%
Q1 2018+0.0%-1.7%+5.0%
Q4 2017+6.2%+17.3%+22.2%
Q3 2017-17.5%-22.2%-25.4%
Q2 2017-4.8%-7.9%+1.6%
Q1 2017-2.4%-1.2%-7.1%
Q4 2016+0.0%+0.0%-54.2%
Q3 2016-2.5%-1.3%-0.6%
Q2 2016+1.5%+3.6%+9.6%
Q1 2016+0.7%
Q4 2015-1.1%
Q3 2015-1.7%
Q2 2015-6.0%
Q1 2015+0.7%
Q4 2012+6.1%
Q3 2014+6.1%
Q4 2014-5.5%
Q3 2013-9.7%
Q4 2013-9.7%
Q1 2014
Q2 2013
Q1 2013
Q3 2012

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