Goldman Sachs Starts Xenon Pharmaceuticals (XENE) at Buy

Goldman Sachs analyst Paul Choi initiates coverage on Xenon Pharmaceuticals (NASDAQ: XENE) with a Buy rating and a price target of $60.00.

The analyst comments "Innovation and blockbuster potential in an overlooked neuro category. We see near-to-medium term stock performance driven primarily by updates on XEN1101 in FOS, which we view as a largely de-risked lead indication. Beyond progress in the clinic, we also look for clarity on positioning within the treatment paradigm with our KOL conversations indicating a strong preference for sequencing XEN1101 ahead of other emerging therapies in the 2L and 3L+ settings based on the available data and ease of integration into the current treatment algorithm. Although pricing power will likely be limited, we think -1101's differentiated profile (novel MOA, strong efficacy, QD dosing) combined with good launch execution portends blockbuster FOS sales in the mostly generic epilepsy category (2030E: $1.1bn or +46% above consensus of $753mn). Supported by a solid balance sheet, we also see reasonably good chances of XENE creating value from the PGTCS and MDD opportunities. We initiate at Buy with a $60 12-month price target."

For an analyst ratings summary and ratings history on Xenon Pharmaceuticals click here. For more ratings news on Xenon Pharmaceuticals click here.

Shares of Xenon Pharmaceuticals closed at $38.07 yesterday.

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