A younger, earlier-stage Biogen, but hyper-focused on treatments for epilepsy and other brain disorders.

A company aiming to do for epilepsy and severe neurological disorders what Vertex Pharmaceuticals did for cystic fibrosis – develop highly effective, targeted treatments.

• XEN496: A Kv7 potassium channel opener in Phase III clinical trials for KCNQ2 developmental and epilepsy encephalopathy.
• XEN1101: A Kv7 potassium channel opener in Phase II clinical trials for epilepsy and other neurological disorders.
• NBI-921352: A selective Nav1.6 sodium channel inhibitor in Phase II clinical trials for SCN8A developmental and epileptic encephalopathy and adult focal epilepsy.
• XEN007: A central nervous system-acting calcium channel modulator in Phase II clinical trials.
• PCRX301 (XEN402): A Nav1.7 inhibitor being developed for the treatment of post-operative pain.

Xenon Pharmaceuticals (XENE) is a clinical-stage biopharmaceutical company primarily engaged in the research and development of therapeutics. As such, it does not sell finished pharmaceutical products directly to individual patients or healthcare providers at this stage of its operations.

Instead, Xenon Pharmaceuticals generates revenue and advances its pipeline through strategic partnerships and collaboration agreements with other pharmaceutical companies. Its major customers or partners in this context are:

• Neurocrine Biosciences, Inc. (Symbol: NBIX)
• Flexion Therapeutics, Inc.

Neurocrine Biosciences, Inc. (NBIX)

Ian Mortimer, President and Chief Executive Officer

Mr. Mortimer has served as President and Chief Executive Officer of Xenon Pharmaceuticals since June 2021, having initially joined the company in October 2013 as Chief Financial Officer. Prior to his CEO role, he held various positions at Xenon, including President since March 2018, Corporate Secretary, and Chief Operating Officer. Before joining Xenon, Mr. Mortimer was Executive Vice President and Chief Financial Officer at Tekmira Pharmaceuticals Corporation (now Arbutus Biopharma Corporation), a Nasdaq-listed biotechnology company, from 2007 to 2013, where he led Tekmira's Nasdaq listing in 2010. From 2004 to 2007, he served as Chief Financial Officer at Inex Pharmaceuticals, after holding other roles there since 1997. He currently serves on the board of directors of Perimeter Medical Imaging AI, Inc., a publicly-traded medical device company, since July 2020.

Tucker Kelly, Chief Financial Officer

Mr. Kelly was appointed Chief Financial Officer of Xenon Pharmaceuticals in October 2025. He brings over 25 years of experience in corporate and financial strategy for U.S. and international life sciences companies. Most recently, he served as Executive Vice President, CFO, and Treasurer at Deciphera Pharmaceuticals Inc., which was acquired by Ono Pharmaceuticals Co. Ltd. for $2.4 billion in 2024. Prior to Deciphera, Mr. Kelly held CFO positions at various public and private life sciences companies, including AdvanDx Inc., deCODE genetics Inc., and Critical Therapeutics Inc. His career also includes experience as a life sciences investment banker at Robertson Stephens and Canaccord Adams, and as an attorney in the corporate and securities group of Foley Hoag LLP.

Matthew D. Ronsheim, Ph.D., Chief Operating Officer

Dr. Ronsheim joined Xenon Pharmaceuticals as Chief Operating Officer in August 2024. He has 25 years of experience in pharmaceutical development, bringing medicines from discovery through global regulatory filings, approvals, and commercial launch and supply. Before Xenon, Dr. Ronsheim was President of Innoviva Specialty Therapeutics and previously served as their Chief Technical Officer. Prior to that, he was President of Entasis Therapeutics, which was acquired by Innoviva, Inc. in 2022. Throughout his career, he has held leadership roles overseeing research, Chemistry, Manufacturing and Controls (CMC), pharmaceutical development, and commercialization at companies such as Merck/Cubist Pharmaceuticals, Enanta Pharmaceuticals, and Forest Laboratories.

Christopher Kenney, M.D., Chief Medical Officer

Dr. Kenney was appointed Chief Medical Officer of Xenon Pharmaceuticals in August 2021. He is a board-certified neurologist with over 20 years of clinical research experience in neuroscience, spanning both industry and academic roles. Before joining Xenon, Dr. Kenney served as Chief Medical Officer at Cadent Therapeutics from 2019 until its acquisition by Novartis in December 2020. Earlier in his career, he was Senior Vice President of Medical Affairs (2018-2019) and Senior Vice President, Clinical Development (2016-2018) at Acorda Therapeutics.

Andrea DiFabio, Chief Legal Officer and Corporate Secretary

Ms. DiFabio serves as the Chief Legal Officer and Corporate Secretary for Xenon Pharmaceuticals. In her role, she is responsible for the company's legal and corporate governance matters.

Here are the key risks to Xenon Pharmaceuticals (XENE):

1. Risk of Regulatory Non-Approval or Delays for Lead Product Candidates: Despite positive Phase 3 data for azetukalner (XEN1101) in focal onset seizures (FOS) and plans for a New Drug Application (NDA) submission in Q3 2026, the regulatory approval process with the FDA remains a significant hurdle. The FDA may raise questions regarding the comprehensive data package, chemistry, manufacturing, and controls (CMC), or the observed adverse event rates, potentially leading to delays or, in some cases, non-approval. Furthermore, other pipeline candidates, such as those for major depressive disorder and bipolar depression, are in earlier clinical stages and inherently carry higher risks of clinical trial failure, particularly given the historically high failure rates for depression indications.
2. Commercialization Challenges and Intense Market Competition: Even if azetukalner receives regulatory approval, successfully launching and commercializing the drug will be a substantial and expensive undertaking. Xenon Pharmaceuticals is in the process of transitioning from an R&D-focused entity to a fully integrated commercial biopharmaceutical company, requiring the establishment of its own sales force. The anti-seizure medication (ASM) market is highly competitive and crowded, with established pharmaceutical companies possessing considerable marketing budgets. This intense competition, coupled with potential payer pressure on pricing and market access, could impede Xenon's ability to gain significant market share and achieve commercial success.
3. Ongoing Financial Losses and Potential for Shareholder Dilution: Xenon Pharmaceuticals continues to incur substantial quarterly net losses, reflecting the significant financial strain associated with the research, development, and clinical trials of its product pipeline. To fund its extensive clinical programs and the anticipated commercial launch of azetukalner, the company may need to secure additional capital. Such financing, including proposed public offerings of common shares, could lead to dilution of existing shareholders and exert downward pressure on the stock price, particularly if anticipated earnings and profitability do not materialize as quickly as projected.

Addressable Markets for Xenon Pharmaceuticals' Main Products

Xenon Pharmaceuticals Inc. (NASDAQ: XENE) is developing therapeutics for various neurological disorders, including specific forms of epilepsy.

Developmental and Epileptic Encephalopathies (DEE)

XEN496 for KCNQ2 developmental and epilepsy encephalopathy (KCNQ2-DEE) and NBI-921352 for SCN8A developmental and epileptic encephalopathy (SCN8A-DEE) target conditions within the broader Developmental and Epileptic Encephalopathies (DEE) market.

• The global Developmental and Epileptic Encephalopathies (DEE) market size was valued at USD 4.09 billion in 2024 and is projected to reach USD 8.24 billion by 2035, growing at a compound annual growth rate (CAGR) of 6.57% from 2025 to 2035.
• In the U.S., the total market size for DEE was estimated to be approximately USD 1.65 billion in 2023.

Focal Epilepsy

XEN1101 for epilepsy and other neurological disorders, and NBI-921352 for adult focal epilepsy, address the focal epilepsy market.

• The global intractable focal epilepsy market was valued at over US$2 billion in 2022. It is valued at USD 2.5 billion in 2026 and is projected to reach USD 4.1 billion by 2033, with a CAGR of 5%.
• The focal seizures segment accounted for 60.88% of the anti-epileptic drugs market size in 2025.
• More broadly, the global epilepsy drugs market size reached USD 9.50 billion in 2023 and is projected to grow to USD 15.16 billion by 2032, indicating a CAGR of 5.1% from 2024 to 2032.
• The U.S. epilepsy drugs market generated a revenue of USD 3,881.6 million in 2024 and is expected to reach USD 5,300.3 million by 2030, growing at a CAGR of 5.4% from 2025 to 2030.

Xenon Pharmaceuticals Inc. (NASDAQ: XENE) is a clinical-stage biopharmaceutical company focused on developing therapeutics for neurological disorders. Over the next 2-3 years, the company's future revenue growth is expected to be primarily driven by the advancement and potential commercialization of its lead product candidate, azetukalner (formerly XEN1101), across multiple indications, as well as continued milestone payments from its collaboration with Neurocrine Biosciences.

Drivers of Future Revenue Growth:

1. Commercialization of Azetukalner for Focal Onset Seizures (FOS): The most significant near-term revenue driver for Xenon Pharmaceuticals is the anticipated commercial launch of azetukalner for focal onset seizures (FOS). The company recently announced positive topline results from its Phase 3 X-TOLE2 study, demonstrating a 53.2% reduction in seizure frequency versus placebo. An New Drug Application (NDA) submission for azetukalner in FOS is expected in the second half of 2026, with a potential launch by early 2028. Xenon is actively building its own sales and marketing infrastructure in North America to support an independent launch. Analysts project peak sales for azetukalner in epilepsy could reach up to $2.4 billion. The ongoing X-TOLE3 Phase 3 study for FOS is intended to support regulatory submissions in ex-U.S. jurisdictions, further expanding the market opportunity.
2. Expansion of Azetukalner into Additional Neuropsychiatric Indications: Beyond focal onset seizures, azetukalner is being developed for other significant neurological disorders, which could contribute substantially to future revenue. The company has initiated Phase 3 clinical programs for azetukalner in Major Depressive Disorder (MDD), with topline data from the X-NOVA2 study anticipated in the first half of 2027. Additionally, Phase 3 studies are underway for Primary Generalized Tonic-Clonic Seizures (X-ACKT) and Bipolar Depression (X-CEED), aimed at securing approvals for these additional epilepsy and neuropsychiatric indications. Projections indicate potential sales of an additional $1.4 billion for mood disorders (MDD and BPD). This "pipeline-in-a-product" strategy aims to maximize azetukalner's commercial footprint.
3. Milestone and Royalty Payments from Neurocrine Biosciences Collaboration: Xenon Pharmaceuticals has an ongoing collaboration with Neurocrine Biosciences for the development of NBI-921352 (formerly XEN901), a selective Nav1.6 sodium channel inhibitor. Historically, a portion of Xenon's revenue has been derived from milestone payments and royalties from such partnerships. As NBI-921352 progresses through its clinical development, Xenon remains eligible to receive further clinical, regulatory, and commercial milestone payments, as well as future sales royalties, which could provide a steady stream of non-product revenue. Neurocrine Biosciences is advancing a Nav1.2/1.6 inhibitor towards human clinical trials in 2025.

Share Issuance

• In March 2026, Xenon Pharmaceuticals completed an upsized public offering, raising approximately $707.7 million in net proceeds through the sale of common shares and pre-funded warrants, including the full exercise of the underwriters' option.
• This offering involved the sale of 12.24 million common shares and pre-funded warrants to purchase 877,194 common shares.
• The number of shares outstanding has steadily increased over the last few years, from 42.27 million in 2021 to 79.24 million in 2025.

Inbound Investments

• Xenon Pharmaceuticals generates revenue primarily through non-recurring milestone payments from strategic research and development collaborations.
• For the trailing twelve months ended September 30, 2025, the company recorded approximately $7.5 million in revenue from a milestone payment under a collaboration agreement.

Capital Expenditures

• In the last 12 months, Xenon Pharmaceuticals had capital expenditures of approximately -$799,000.
• In Q4 2025, the company invested $318,000 in capital expenditures, representing a 13.2% increase from the prior quarter.
• These capital expenditures contributed to a free cash flow of -$279.92 million over the last 12 months.