Xenon Pharmaceuticals (XENE) PT Raised to $89 at Stifel

Stifel analyst Paul Matteis raised the price target on Xenon Pharmaceuticals (NASDAQ: XENE) to $89.00 (from $66.00) while maintaining a Buy rating.

The analyst commented, "We're reiterating our Buy rating on the back of very strong azeutkalner/XEN1101 X-TOLE2 ph3 data in FOS, where additional details presented on the call reaffirm the top-line and the consistency of the results across studies. In turn, we're increasing our target price to $89 from $66, which reflects: (1) de-risking in FOS--95% probability-of-approval, slightly reduced discount rate in our DCF, (2) increased peak penetration given the strength of the data, (3) a moderately higher price estimate--now ~$20k WAC [~25%+ premium to the Xcopri launch price] and (4) as a result, increased peak sales to ~$2.5B US and ~$500MM ROW. Price here is still a variable where we could see possible upside, though the data are fresh and this is TBD. Beyond upside for azetukalner, we think these data strengthen the competitive moat against some of the other possible concurrent FOS launches, including PRAX's vormatrigine and BHVN's BHV-7000 (if it works)."

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