Xenon Reports Q3 2024 Financial Results and Business Update
XENE 11.12.2024
Drug:unknown azetukalner
Diseases:focal onset seizures
Diseases:primary generalized tonic-clonic seizures
Diseases:major depressive disorder
Date of Upcoming Event:2024-12-06
Name of Upcoming Event:American Epilepsy Society (AES 2024) annual meeting
– Phase 3 epilepsy program advancing with X-TOLE2 topline FOS data anticipated in H2 2025
– Long-term azetukalner results from X-TOLE open-label extension study in FOS to be presented at AES
– Phase 3 MDD program on track with X-NOVA2 study expected to initiate by year-end
– Expanding ion channel portfolio includes multiple candidates advancing towards IND filings in 2025
– Recent appointment of
– Conference call at
“Xenon’s leadership in the Kv7 landscape is unmatched as our lead molecule, azetukalner, represents the only highly potent, selective Kv7 potassium channel opener in development for multiple indications that is backed by long-term efficacy and safety data with over 600-patient years of exposure in patients living with epilepsy. Importantly, we generated highly compelling double-blind efficacy data that we believe demonstrates the best placebo-adjusted results in focal onset seizure patients, and excitement around azetukalner is building as we continue to progress toward the X-TOLE2 topline data readout expected in the second half of 2025,” stated
“Beyond epilepsy, we have a high degree of confidence in the broader applicability of azetukalner with our first Phase 3 trial in MDD expected to initiate by year-end, while continuing to increase the breadth of our pipeline as we progress our early-stage programs with the advancement of multiple candidates towards IND filings in 2025,” added
Quarterly Business Highlights and Anticipated Milestones
Azetukalner, a novel, highly potent, selective Kv7 potassium channel opener, represents the most advanced, clinically validated potassium channel modulator in late-stage clinical development for multiple indications. Xenon is currently developing azetukalner for the treatment of epilepsy, including focal onset seizures (FOS) and primary generalized tonic-clonic seizures (PGTCS), as well as major depressive disorder (MDD), while exploring applicability in other neuropsychiatric disorders.
Epilepsy Programs
- Phase 3 FOS studies continue to advance, with the first topline data readout from X-TOLE2 anticipated in the second half of 2025. The Phase 3 FOS clinical trials are multicenter, randomized, double-blind, placebo-controlled studies evaluating the clinical efficacy, safety, and tolerability of azetukalner in patients with FOS.
- Phase 3 X-ACKT clinical study is currently enrolling patients and is intended to support potential regulatory submissions in an additional epilepsy indication of PGTCS. This multicenter, randomized, double-blind, placebo-controlled trial is evaluating the clinical efficacy, safety and tolerability of azetukalner in patients with PGTCS.
- Building upon the 600 patient-years of drug exposure to date, Xenon continues to generate long-term scientific evidence demonstrating azetukalner’s compelling efficacy and safety profile in the ongoingX-TOLE open-label extension (OLE)study.
- The Company continues to present azetukalner data at leading medical conferences and congresses, including the recent 15th
European Epilepsy Congress (EEC), Epilepsy Foundation Pipeline Conference , and AMCP Nexus 2024. - Five abstracts were accepted for presentation at the upcoming
American Epilepsy Society (AES 2024) annual meeting inLos Angeles, CA fromDecember 6-10 . The Company plans to showcase new data from the ongoing azetukalner OLE in FOS and anticipates presenting updated pre-clinical data from its Nav1.1 program.
MDD Program
- X-NOVA2, the first of three Phase 3 clinical trials evaluating azetukalner in patients with MDD, is expected to initiate before the end of the year.
- Xenon presented Phase 2 X-NOVA data at the
Psych Congress , which took place fromOctober 29- November 2 . - The Company continues to support the investigator-sponsored Phase 2 proof-of-concept study of azetukalner in MDD led by
Icahn School of Medicine at Mount Sinai . Patient enrollment for this study is now complete and results are anticipated in the first half of 2025.
Early-Stage Pipeline: Next Generation Ion Channel Modulators
As leaders in the small molecule ion channel space, Xenon continues to expand its portfolio by leveraging its extensive expertise to discover and develop potassium and sodium channel therapeutics, including candidates targeting Kv7, Nav1.7, and Nav1.1 across various indications with the goal of filing multiple INDs, or equivalent, in 2025.
- IND-enabling work is underway with multiple Kv7 development candidates. Kv7 may have utility in a broad range of therapeutic indications including seizures, pain, and neuropsychiatric disorders, such as MDD.
- IND-enabling work is underway with a lead Nav1.7 development candidate. Nav1.7 is an important pain-related target, based on strong human genetic validation, that may represent a new class of medicines without the limitations of opioids.
- The Company expects to nominate a lead candidate within its Nav1.1 program in 2025. Pre-clinical data suggests that targeting Nav1.1 could potentially address the underlying cause and symptoms of Dravet Syndrome.
Corporate
- Xenon continues to attract top talent with extensive biopharmaceutical experience, including the recent addition of
Matthew D. Ronsheim , Ph.D. as Chief Operating Officer and a member of the Xenon senior executive team.
Partnered Program
- As part of Xenon’s ongoing collaboration with Neurocrine Biosciences to develop treatments for epilepsy, a Phase 2 clinical trial is evaluating NBI-921352 (formerly XEN901) in an orphan pediatric epilepsy (SCN8A-DEE), and the next lead candidate, a Nav1.2/1.6 inhibitor, is in IND-enabling studies with the intent to progress into human clinical trials in 2025 as a potential treatment for FOS.
Third Quarter Financial Results
- Cash and cash equivalents and marketable securities were
$803.3 million as ofSeptember 30, 2024 , compared to$930.9 million as ofDecember 31, 2023 . Based on current operating plans, including the completion of the azetukalner Phase 3 epilepsy studies and fully supporting late-stage clinical development of azetukalner in MDD, Xenon anticipates having sufficient cash to fund operations into 2027. As ofSeptember 30, 2024 , there were 75,794,409 common shares and 2,173,081 pre-funded warrants outstanding. - Research and development expenses for the quarter ended
September 30, 2024 were$57.0 million , compared to$42.9 million for the same period in 2023. The increase of$14.1 million was primarily attributable to increased expenses related to the azetukalner Phase 3 epilepsy clinical trials and manufacturing activities, pre-clinical and discovery programs to advance multiple potential drug candidates targeting Kv7, Nav1.7, and Nav1.1, and increased personnel-related costs due to an increase in employee headcount and higher stock-based compensation expense. - General and administrative expenses for the quarter ended
September 30, 2024 were$16.7 million , compared to$12.8 million for the same period in 2023. The increase of$3.9 million was primarily attributable to personnel-related costs due to an increase in employee headcount and higher stock-based compensation expense. - Other income for the quarter ended
September 30, 2024 was$10.6 million , compared to$7.1 million for the same period in 2023. The increase of$3.5 million was primarily attributable to higher interest income. - Net loss for the quarter ended
September 30, 2024 was$62.8 million , compared to$48.5 million for the same period in 2023. The increase in net loss was primarily attributable to higher research and development expenses driven by the azetukalner and pre-clinical and discovery programs, as well as increased personnel-related costs and stock-based compensation expense across the organization, partially offset by an increase in interest income.
Conference Call Information
Xenon will host a conference call and webcast today at
About the Azetukalner Phase 3 Epilepsy Program
Xenon’s Phase 3 epilepsy program includes three ongoing Phase 3 clinical trials in focal onset seizures (FOS) and primary generalized tonic-clonic seizures (PGTCS). Designed closely after the Phase 2b X-TOLE clinical trial, the Phase 3 X-TOLE clinical trials are multicenter, randomized, double-blind, placebo-controlled studies evaluating the clinical efficacy, safety, and tolerability of 15 mg or 25 mg of azetukalner administered with food as adjunctive treatment in approximately 360 patients with FOS per study. The primary efficacy endpoint is the median percent change (MPC) in monthly seizure frequency from baseline through the double-blind period (DBP) of azetukalner compared to placebo. X-ACKT is a multicenter, randomized, double-blind, placebo-controlled study evaluating the clinical efficacy, safety, and tolerability of 25 mg of azetukalner administered with food as adjunctive treatment in approximately 160 patients with PGTCS. The primary efficacy endpoint is the MPC in monthly PGTCS frequency from baseline through the DBP of azetukalner compared to placebo. Upon completion of the double-blind period in the Phase 3 epilepsy studies, eligible patients may enter an OLE study for up to three years.
About
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. These forward-looking statements are not based on historical fact, and include statements regarding the timing of and potential results from clinical trials; the potential efficacy, safety profile, future development plans in current and anticipated indications, addressable market, regulatory success and commercial potential of our and our partners’ product candidates; the efficacy of our clinical trial designs; our ability to successfully develop and achieve milestones in our azetukalner and other pipeline and development programs; and our ability to successfully develop and obtain regulatory approval of azetukalner and our other product candidates. These forward-looking statements are based on current assumptions that involve risks, uncertainties and other factors that may cause the actual results, events, or developments to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties, many of which are beyond our control, include, but are not limited to: clinical trials may not demonstrate safety and efficacy of any of our or our collaborators’ product candidates; promising results from pre-clinical development activities or early clinical trial results may not be replicated in later clinical trials; our assumptions regarding our planned expenditures and sufficiency of our cash to fund operations may be incorrect; our ongoing discovery and pre-clinical efforts may not yield additional product candidates; any of our or our collaborators’ product candidates, including azetukalner, may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; we may not achieve additional milestones in our proprietary or partnered programs; regulatory agencies may impose additional requirements or delay the initiation of clinical trials; the impact of market, industry, and regulatory conditions on clinical trial enrollment; the impact of competition; the impact of expanded product development and clinical activities on operating expenses; the impact of new or changing laws and regulations; as well as the other risks identified in our filings with the
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| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents and marketable securities | $ | 654,015 | $ | 638,082 | |||
| Other current assets | 5,624 | 6,880 | |||||
| Marketable securities, long-term | 149,317 | 292,792 | |||||
| Other long-term assets | 26,945 | 27,044 | |||||
| Total assets | $ | 835,901 | $ | 964,798 | |||
| Liabilities | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 28,308 | $ | 25,974 | |||
| Other current liabilities | 1,387 | 1,299 | |||||
| Other long-term liabilities | 8,399 | 9,604 | |||||
| Total liabilities | $ | 38,094 | $ | 36,877 | |||
| Shareholders’ equity | $ | 797,807 | $ | 927,921 | |||
| Total liabilities and shareholders’ equity | $ | 835,901 | $ | 964,798 | |||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | $ | 56,970 | $ | 42,880 | $ | 150,922 | $ | 126,436 | |||||||
| General and administrative | 16,706 | 12,804 | 50,899 | 33,923 | |||||||||||
| 73,676 | 55,684 | 201,821 | 160,359 | ||||||||||||
| Loss from operations | (73,676 | ) | (55,684 | ) | (201,821 | ) | (160,359 | ) | |||||||
| Other income | 10,566 | 7,065 | 32,935 | 22,622 | |||||||||||
| Loss before income taxes | (63,110 | ) | (48,619 | ) | (168,886 | ) | (137,737 | ) | |||||||
| Income tax recovery | 320 | 157 | 241 | 87 | |||||||||||
| Net loss | (62,790 | ) | (48,462 | ) | $ | (168,645 | ) | $ | (137,650 | ) | |||||
| Other comprehensive income (loss): | |||||||||||||||
| Unrealized gain on available-for-salesecurities | $ | 3,548 | $ | 346 | $ | 1,413 | $ | 47 | |||||||
| Comprehensive loss | $ | (59,242 | ) | $ | (48,116 | ) | $ | (167,232 | ) | $ | (137,603 | ) | |||
| Net loss per common share: | |||||||||||||||
| Basic and diluted | $ | (0.81 | ) | $ | (0.73 | ) | $ | (2.17 | ) | $ | (2.09 | ) | |||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic and diluted | 77,926,205 | 66,002,163 | 77,730,644 | 65,862,661 | |||||||||||
Source: Xenon Pharmaceuticals Inc.