Xenon's (XENE) X-Tole Data as Good as it Gets with Best-in-Category Efficacy - Analyst
Earlier today, Xenon Pharmaceuticals Inc. (Nasdaq: XENE) reported positive topline results from the Phase 2b X-TOLE clinical trial, which evaluated the clinical efficacy, safety, and tolerability of XEN1101 – a differentiated Kv7 potassium channel modulator – administered as adjunctive treatment in adult patients with focal epilepsy.
The trial met its primary efficacy endpoint with XEN1101 demonstrating a statistically significant and dose-dependent reduction from baseline in monthly (defined as 28 days) focal seizure frequency when compared to placebo (monotonic dose response; p<0.001).
Following up on on the announcement, William Blair analyst Tim Lugo believes “these data are incredibly strong and represent a best-case scenario from the study from an efficacy perspective” and that “today’s data looks to be the best data produced in the indication to date”
Commenting on the drug’s safety profile, the analyst quotes: “considering that patients are treated with individualized polypharmacy consisting of several ASMs, a commercial success as an adjunctive treatment for FOS is driven more by safety, tolerability, and ease-of-use characteristics. On the safety side, the profile of XEN1101 is highly supportive of such a product.”
The analyst summarizes that “Overall, with best-in-class efficacy, a clean safety profile, a novel mechanism of action in Kv7 channel modulation, and key ease-of-use characteristics including no drug-drug interactions and a once-daily single pill with no titration required, we believe these data suggest that XEN1101 may be the best-in-class drug for FOS and successful development would position it as the go-to therapy.”
He models peak US sales at over $1B and “believes the company is trading at an attractive enterprise value of just shy of $1 billion” despite being up 80% in the pre-market.
William Blair maintains an “Outperform” rating on XENE shares and believes $46 is the fair value of shares.
Xenon Pharmaceuticals Inc (XENE) is gaining nearly 80% pre-market, trading around $27.
Written by Vlad Schepkov | [email protected]