Xenon Pharmaceuticals Reports Q1 2025 Financial Results with $65M Net Loss

Xenon Pharmaceuticals Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $65.0 million, compared to a net loss of $47.9 million for the same period in 2024. The company's accumulated deficit has now reached $964.5 million. Total revenue for the quarter was $7.5 million, a significant increase from zero revenue in the first quarter of 2024, primarily attributed to a milestone payment from its collaboration with Neurocrine Biosciences related to the development of NBI-921355, a potential treatment for epilepsy.

Operating expenses for the quarter totaled $80.2 million, up from $59.0 million in the prior year, driven by increased research and development costs, which rose to $61.2 million from $44.3 million. This increase reflects ongoing investments in the clinical development of azetukalner, a key product candidate, as well as personnel-related expenses due to a growing workforce. General and administrative expenses also increased to $19.0 million from $14.8 million, reflecting the company's expansion efforts and preparations for potential commercialization.

In terms of operational metrics, Xenon reported cash and cash equivalents of $116.7 million as of March 31, 2025, down from $142.7 million at the end of 2024. The company also holds marketable securities totaling $432.9 million, down from $484.2 million. The total assets decreased to $743.3 million from $798.1 million, while total liabilities decreased slightly to $39.3 million from $43.2 million. The company’s employee headcount has increased to support its expanding research and development activities, although specific numbers were not disclosed.

Looking ahead, Xenon anticipates continued significant operating losses as it invests in the development of azetukalner and other product candidates. The company is preparing for potential regulatory submissions and commercialization efforts, which will require substantial funding. Management expects that its current cash and marketable securities will be sufficient to fund operations for at least the next 12 months, but acknowledges the need for additional capital to support ongoing and future development activities. The company remains focused on advancing its clinical programs and expanding its portfolio of ion channel therapeutics.