Why Is Xenon Pharmaceuticals (XENE) Up 9.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Xenon Pharmaceuticals (XENE). Shares have added about 9.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Xenon Pharmaceuticals due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Xenon Pharmaceuticals Inc. before we dive into how investors and analysts have reacted as of late.Xenon Q3 Loss Narrower Than Expected, Pipeline Development in FocusXenon reported a loss of $1.15 per share for the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $1.16. The company had incurred a loss of 81 cents per share in the year-ago quarter.In the reported quarter, Xenon did not generate any revenues. Due to the absence of a marketed product, the company only recognizes periodic collaboration revenues in its top line from its ongoing partnership with Neurocrine Biosciences. The company did not recognize any revenues in the year-ago quarter as well.XENE's Q3 Results in DetailIn the third quarter, research and development (R&D) expenses increased 35% year over year to $77.1 million. The uptick was primarily due to increased expenses related to the company’s ongoing azetukalner late-stage studies in epilepsy and MDD, start-up costs for the azetukalner phase III BPD program, and higher personnel expenses from a larger workforce.General and administrative expenses totaled $19.3 million in the reported quarter, up 16% year over year due to an increase in professional and consulting fees.Xenon had cash, cash equivalents and marketable securities worth $555.3 million as of Sept. 30, 2025, compared with $624.8 million as of June 30, 2025. The company expects its existing cash balance to fund its current operating plans, which include the completion of the azetukalner phase III epilepsy studies and supporting late-stage clinical development of azetukalner in MDD and BPD into 2027.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresCurrently, Xenon Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Xenon Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerXenon Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, BioMarin Pharmaceutical (BMRN), a stock from the same industry, has gained 2.6%. The company reported its results for the quarter ended September 2025 more than a month ago.BioMarin reported revenues of $776.13 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.12 for the same period compares with $0.91 a year ago.BioMarin is expected to post earnings of $0.94 per share for the current quarter, representing a year-over-year change of +2.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.9%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BioMarin. Also, the stock has a VGM Score of B.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xenon Pharmaceuticals Inc. (XENE): Free Stock Analysis Report BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks