Xenon Pharmaceuticals Inc. Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2024

Press release · 05/10 16:27
Xenon Pharmaceuticals Inc. Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2024

Xenon Pharmaceuticals Inc. Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2024

Xenon Pharmaceuticals Inc. has filed a Quarterly Report on Form 10-Q, reporting financial results for the quarter ended March 31, 2024. The report includes consolidated balance sheets, statements of operations and comprehensive loss, shareholders’ equity, and cash flows for the three months ended March 31, 2024 and 2023. The company’s financial condition and results of operations are discussed in Item 2, while market risk disclosures are provided in Item 3. Controls and procedures are detailed in Item 4. Legal proceedings and risk factors are addressed in Item 1, and other information is included in Item 5. The report concludes with signatures.

Overview

Xenon Pharmaceuticals is a neuroscience-focused biopharmaceutical company developing novel medicines for epilepsy and depression. As of March 31, 2024, Xenon had $885.4 million in cash, cash equivalents, and marketable securities. The company has funded operations primarily through equity offerings, collaborations, and debt financing. Xenon has incurred significant losses since inception, with a net loss of $47.9 million in Q1 2024 and an accumulated deficit of $713.1 million as of March 31, 2024. Operating expenses are expected to continue increasing substantially as Xenon advances its pipeline.

Lead Program: Azetukalner (XEN1101)

Azetukalner is a potassium channel opener being developed for epilepsy and major depressive disorder (MDD). Key updates:

  • Phase 3 trials ongoing in focal onset seizures (X-TOLE2, X-TOLE3) and primary generalized tonic-clonic seizures (X-ACKT). X-TOLE2 enrollment expected to complete in late 2024/early 2025.
  • Reported positive Phase 2 results in MDD in November 2023; first Phase 3 trial expected to start 2H 2024.
  • Ongoing Phase 2 investigator-sponsored trial in MDD.
  • Phase 2b open label extension in epilepsy extended from 5 to 7 years.

Expenses

Three Months Ended March 31 2024 2023 Change
Research and development $44.3 million $39.5 million +$4.7 million
General and administrative $14.8 million $9.5 million +$5.3 million
  • Increase in R&D driven by azetukalner manufacturing and late-stage development costs.
  • Increase in G&A driven by personnel and stock-based compensation costs.

Financial Position

  • Cash balance provides funding for at least the next 12 months based on current operating plan.
  • Entered $250 million “at-the-market” equity facility in August 2020 to support future funding needs.
  • Net cash used in operations was $43.2 million in Q1 2024 compared to $34.4 million in Q1 2023.
  • No substantial changes to contractual obligations and commitments since year-end 2023.

Outlook

Xenon is focused on advancing azetukalner in late-stage epilepsy trials and moving towards Phase 3 development in MDD based on positive Phase 2 results. The company expects continued increases in operating expenses to support these pipeline programs. Xenon is well-funded currently but expects to raise additional capital through collaborations, equity financings, or other means to achieve its development goals.

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