Xenon Pharmaceuticals (XENE) KOL Call Indicates XEN1101 has "Blockbuster Potential"

April 1, 2021 8:45 AM EDT
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Price: $17.62 +1.32%

Rating Summary:
    9 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 42
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Jefferies analyst Andrew Tsai reiterated a Buy rating and $28.00 price target on Xenon Pharmaceuticals (NASDAQ: XENE) after hosting a KOL call with a neurologist to discuss XEN1101 in focal epilepsy. Key Points include: 1) top-selling drugs like UCB's Keppra still have real limitations, whereas 2) '1101
could prove to be highly differentiated 3) He thinks the upcoming Phase IIb data in Q3:21 has a high 75% PoS, and 4) if efficacy/safety ultimately pans out, he would prescribe '1101 in up to 33% of his patients, above the current assumption of 5-10% (leading to $500M+ peak sales).

The analyst stated "Our KOL strongly believes XEN1101 has "blockbuster" potential in focal epilepsy. (1) XEN1101's novel MOA (Kv7 potassium) is valuable to an epileptologist, as the drug should be naturally synergistic with most AEDs. Anecdotally, there was a buzz within the KOL community when '1101's predecessor (GSK's ezogabine) first launched a decade ago. (2) Compared to ezogabine, XEN1101 has clear advantages, including QD dosing (vs TID), greater potency (~25mg vs 1200mg), and cleaner safety (e.g., no urinary retention or pigmentation signals). (3) Compared to other AEDs, '1101 has many favorable attributes as well, namely a novel MOA, QD dosing, no dose-titration, no DDIs, no SAEs, and its potential to benefit both depression/epilepsy (similar to GSK Lamictal). (4) Net-net, if these favorable attributes for '1101 hold true in Phase II/III studies, our KOL thinks the drug could become a "major player" (e.g., widely prescribed), and he would prescribe '1101 to one-third of his 1L/2L patients (barring label/payor restrictions)."

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 $17.90 yesterday.

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