# Xenon Pharmaceuticals Inc. (XENE) Informational only - not investment advice. CIK: 0001582313 SIC: 2834 Pharmaceutical Preparations SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2834 Pharmaceutical Preparations](/industry/2834/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1582313 Filing source: https://www.sec.gov/Archives/edgar/data/1582313/000119312526076650/xene-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001193125-26-076650 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001582313.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 7,500,000 USD | 2025 | verified | | Net income | -345,910,000 USD | 2025 | verified | | Assets | 633,163,000 USD | 2025 | verified | | Free cash flow | -279,917,000 USD | 2025 | computed | | ROE | -59.46% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | XENE | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -89.7% | 1.0% | 10 | 107 | | Operating margin | -97.3% | -1.3% | 15 | 100 | | FCF margin | -3,732.2% | -14.0% | 4 | 127 | | ROE | -59.5% | -30.7% | 20 | 171 | | ROA | -54.6% | -21.8% | 12 | 187 | | Liabilities / equity | 0.09 | 0.38 | 17 | 173 | | Current ratio | 13.42 | 4.89 | 80 | 188 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 2834 Pharmaceutical Preparations, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 7500000 | USD | 2025 | 2026-02-26 | | Net income | -345910000 | USD | 2025 | 2026-02-26 | | Assets | 633163000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001582313.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 6,829,000 | 32,166,000 | 18,437,000 | 9,434,000 | | | 7,500,000 | | Net income | | -22,997,000 | -30,704,000 | -34,497,000 | -41,595,000 | -28,837,000 | -78,882,000 | -125,373,000 | -182,393,000 | -234,330,000 | -345,910,000 | | Operating income | | -24,817,000 | -32,575,000 | -38,040,000 | -42,819,000 | -31,301,000 | -78,993,000 | -129,143,000 | -214,054,000 | -279,298,000 | -373,070,000 | | Diluted EPS | -1.10 | -1.48 | -1.72 | -1.63 | | -0.81 | -1.77 | -2.06 | -2.73 | -3.01 | -4.36 | | Operating cash flow | | | -28,726,000 | -34,724,000 | -4,714,000 | -48,124,000 | -69,502,000 | -101,028,000 | -151,112,000 | -181,389,000 | -279,118,000 | | Capital expenditures | | 279,000 | 315,000 | 507,000 | 1,240,000 | 2,637,000 | 2,050,000 | 2,894,000 | 5,617,000 | 3,075,000 | 799,000 | | Assets | | 67,487,000 | 46,121,000 | 122,428,000 | 147,697,000 | 189,186,000 | 572,007,000 | 754,146,000 | 964,798,000 | 798,139,000 | 633,163,000 | | Liabilities | | 3,586,000 | 10,187,000 | 19,133,000 | 55,720,000 | 17,831,000 | 21,974,000 | 32,649,000 | 36,877,000 | 43,236,000 | 51,403,000 | | Stockholders' equity | | 63,901,000 | 35,934,000 | 103,295,000 | 91,977,000 | 171,355,000 | 550,033,000 | 721,497,000 | 927,921,000 | 754,903,000 | 581,760,000 | | Cash and cash equivalents | | 17,095,000 | 20,486,000 | 67,754,000 | 24,755,000 | 45,009,000 | 175,688,000 | 57,242,000 | 148,643,000 | 142,712,000 | 199,163,000 | | Free cash flow | | | -29,041,000 | -35,231,000 | -5,954,000 | -50,761,000 | -71,552,000 | -103,922,000 | -156,729,000 | -184,464,000 | -279,917,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | -89.65% | | | | | | | Operating margin | | | | | | -97.31% | | | | | | | Return on equity | | -35.99% | -85.45% | -33.40% | -45.22% | -16.83% | -14.34% | -17.38% | -19.66% | -31.04% | -59.46% | | Return on assets | | -34.08% | -66.57% | -28.18% | -28.16% | -15.24% | -13.79% | -16.62% | -18.90% | -29.36% | -54.63% | | Liabilities / equity | | 0.06 | 0.28 | 0.19 | 0.61 | 0.10 | 0.04 | 0.05 | 0.04 | 0.06 | 0.09 | | Current ratio | | 18.31 | 10.98 | 29.46 | 3.34 | 12.30 | 39.03 | 26.44 | 23.65 | 17.85 | 13.42 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/XENE/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001582313.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2021-Q3 | 2021-09-30 | 8,124,000 | | | reported discrete quarter | | 2021-Q4 | 2021-12-31 | 3,737,000 | | | derived Q4 = FY annual - nine-month YTD | | 2022-Q1 | 2022-03-31 | 8,766,000 | | | reported discrete quarter | | 2022-Q2 | 2022-06-30 | 536,000 | | | reported discrete quarter | | 2022-Q3 | 2022-09-30 | 132,000 | | -0.57 | reported discrete quarter | | 2022-Q4 | 2022-12-31 | 0.00 | | | derived Q4 = FY annual - nine-month YTD | | 2023-Q1 | 2023-03-31 | | | -0.63 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.72 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -47,461,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | | | -0.73 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | | -44,743,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | -47,931,000 | -0.62 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -47,931,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | | | -0.75 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -57,924,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | | | -0.81 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | | -65,685,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 7,500,000 | -65,047,000 | -0.83 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -65,047,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 0.00 | | -1.07 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -84,706,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 0.00 | | -1.15 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 0.00 | -105,261,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 0.00 | -102,302,000 | -1.17 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | -102,302,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 0.00 | | -1.11 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from XENE's latest 10-K: [/company/XENE/business/](/company/XENE/business/). ## Risk Factors Verbatim Item 1A Risk Factors from XENE's latest 10-K: [/company/XENE/risk-factors/](/company/XENE/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1582313/000119312526338244/xene-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes included in Part I, Item 1 of this report and our audited consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 26, 2026 and with the securities commissions in British Columbia, Alberta and Ontario on February 26, 2026. Forward-Looking Statements Certain statements contained in this Quarterly Report on Form 10-Q may constitute 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 Canadian securities laws. The words or phrases “would be,” “will allow,” “intends to,” “may,” “believe,” “plan,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions, or the negative of such words or phrases, are intended to identify “forward-looking statements.” You should read these statements carefully because they discuss future expectations, contain projections of future results of operations or financial condition, or state other “forward-looking” information. These statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements. These forward-looking statements include, but are not limited to: • our ability to identify additional products or product candidates either from our internal research efforts or through acquiring or in-licensing other product candidates or technologies; • the initiation, timing, cost, progress and success of our research and development programs, pre-clinical studies and clinical studies; • our ability to advance product candidates into, and successfully complete, clinical studies; • our ability to recruit sufficient numbers of patients for our current and future clinical studies; • our ability to obtain funding for our operations in sufficient amounts or on terms acceptable to us, including funding necessary to complete further development, approval and, if approved, commercialization of our product candidates; • our ability to independently develop and commercialize product candidates; • developments relating to our competitors and our industry, including the success of competing therapies that are or become available; • our pre-commercial, commercialization, marketing and manufacturing capabilities and strategy; • our ability to obtain and maintain intellectual property protection for our product candidates and the duration of such protection; • the therapeutic benefits, effectiveness and safety of our product candidates; • the timing of, and our and our collaborators’ ability to obtain and maintain, regulatory approvals for our product candidates; • the accuracy of our estimates of the size and characteristics of the markets that may be addressed by our products and product candidates and our ability to serve those markets, either alone or in partnership with others; • the rate and degree of market acceptance and clinical utility of any future products; • the pricing and reimbursement of our product candidates, if approved; • our expectations regarding federal, state and foreign regulatory requirements; • the impact of current and future healthcare reforms, including those affecting the delivery of or payment for healthcare products and services; • our ability to establish and maintain collaborations; • our expectations regarding market risk, including interest rate changes and foreign currency fluctuations; • our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; • our ability to engage and retain the employees required to grow our business; • our future financial performance; and -16- • the direct and indirect impact of pandemics, epidemics and other public health emergencies on our business and operations, including supply chain, manufacturing, research and development costs, clinical study conduct, clinical study data and employees. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in this report in Part II, Item 1A — “Risk Factors,” and elsewhere in this report. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. These statements, like all statements in this report, speak only as of their date, and we undertake no obligation to update or revise these statements in light of future developments, except as required by law. In this report, “we,” “our,” “us,” “Xenon,” and “the Company” refer to Xenon Pharmaceuticals Inc. and its subsidiary. Unless otherwise noted, all dollar amounts in this report are expressed in United States dollars. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted a thorough inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. Overview We are a neuroscience-focused biopharmaceutical company dedicated to drug discovery, clinical development, and commercialization of life-changing therapeutics for patients in need. Azetukalner Clinical Development Azetukalner is a novel, potent Kv7 potassium channel opener in late-stage development for multiple potential indications, including two in epilepsy – focal onset seizures (FOS) and primary generalized tonic-clonic seizures (PGTCS) – as well as neuropsychiatric disorders, including major depressive disorder (MDD) and bipolar depression (BPD). Epilepsy Programs • We remain on track to submit our New Drug Application (NDA) for azetukalner in FOS in the third quarter of 2026, having completed a pre-NDA meeting with the U.S. Food and Drug Administration (FDA). • The Phase 3 X-TOLE3 study of azetukalner in FOS continues to enroll and is intended to support regulatory submissions outside of the United States. X-TOLE3 enrollment outside of Japan is expected to complete in 2026. • The Phase 3 X-ACKT study of azetukalner in PGTCS continues to enroll and is intended to support regulatory submissions for an additional epilepsy indication. Neuropsychiatry Programs • Enrollment is ongoing in the Phase 3 X-NOVA2 and X-NOVA3 studies evaluating azetukalner in patients with MDD, with topline data from X-NOVA2 expected in H1 2027. • Enrollment is ongoing in the Phase 3 X-CEED study evaluating azetukalner in patients with BPD I or II. Clinical Programs for Pain We continue to expand our portfolio of potent, selective ion channel modulators using our strong heritage in human genetics, deep understanding of ion channel biology, and expertise in novel chemistries. This includes clinical-stage candidates targeting Nav1.7 and Kv7, which are important novel targets for pain. Nav1.7 Programs • The Phase 1 Single Ascending Dose (SAD)/Multiple Ascending Dose (MAD) study in healthy adult participants is ongoing for XEN1701 targeting Nav1.7. Study completion is expected in H2 2026 to support initiating a Phase 2 proof-of-concept study in acute pain. • We recently received approval of our Clinical Trial Application (CTA) to initiate a Phase 1 study of XEN1720 targeting Nav1.7. The Phase 1 SAD/MAD study in healthy adult participants is now underway. -17- Kv7 Program • The Phase 1 SAD/MAD study in healthy adult participants is ongoing for XEN1120 targeting Kv7. Study completion is expected in H2 2026 to support initiating a Phase 2 proof-of-concept study in acute pain. Early-Stage R&D and Partnered Programs for Epilepsy Beyond azetukalner, we are committed to advancing additional novel treatment approaches to address significant unmet needs in epilepsy. • IND-enabling studies are ongoing for our oral small molecule Nav1.1 program. Pre-clinical data suggest that targeting Nav1.1 could potentially address the underlying cause and symptoms of Dravet syndrome. • In collaboration with Neurocrine Biosciences, a Phase 1b study is ongoing for NBI-921355, an investigational, selective inhibitor of voltage-gated sodium channels Nav1.2 and Nav1.6 in development for the potential treatment of certain types of epilepsy. Data from the Phase 1b study are expected in 2027. We have funded our operations primarily through the sale of equity securities, funding received from our licensees and collaborators, and debt financing. For the six months ended June 30, 2026 and 2025, we recognized revenue of nil and $7.5 million, respectively, in connection with our agreement with Neurocrine Biosciences. To date, we have not had any products approved for sale and have not generated any revenue from product sales. We do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for a product candidate, which we expect will take a number of years, if ever, and the outcome of which is subject to significant uncertainty. We will continue to require additional capital to develop our product candidates and fund operations for the foreseeable future. We have incurred net losses in each year since inception and expect to continue to incur net losses for the foreseeable future. We had a net loss of $213.0 million and $149.8 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $1,458.4 million. Substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We anticipate that our operating expenses will increase substantially, particularly as we: • prepare for the potential commercial launch of azetukalner; • invest significantly to further develop azetukalner for our current and future indications; • advance additional product candidates into pre-clinical and clinical development; • seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies; • require the manufacture of larger quantities of our product candidates for clinical development and potential commercialization; • hire additional commercial, clinical, scientific, management and administrative personnel; • acquire or in-license other assets and technologies; • maintain, protect and expand our intellectual property portfolio; and • create additional infrastructure to support our operations and any future commercialization efforts. Financial Operations Overview Revenue To date, our revenue has been primarily derived from collaboration and licensing agreements and we have not generated any revenue from product sales. If our development efforts for our product candidates are successful and result in regulatory approval, we may generate revenue in the future from product sales. We cannot predict if, when, or to what extent we will generate revenue from the commercialization and sale of our product ca [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1582313/000119312526076650/xene-20251231.htm Complete FY 2025 MD&A: /company/XENE/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion and analysis together with our consolidated financial statements and notes included elsewhere in this Annual Report. The following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ from those expressed or implied in any forward-looking statements as a result of various factors, including those set forth under the caption Part I, Item 1A — “Risk Factors.” Throughout this discussion, unless the context specifies or implies otherwise, the terms “Xenon,” “we,” “us,” and “our” refer to Xenon Pharmaceuticals Inc. and its subsidiary. Overview We are a neuroscience-focused biopharmaceutical company dedicated to discovering, developing, and delivering life-changing therapeutics. We are advancing an ion channel product portfolio to address areas of high unmet medical need, including epilepsy and depression. Azetukalner Clinical Development Azetukalner, a novel, potent Kv7 potassium channel opener, represents the most advanced, clinically-validated potassium channel modulator in late-stage clinical development for the treatment of multiple indications, including two in epilepsy – FOS and PGTCS – as well as neuropsychiatric disorders, including MDD and BPD. Epilepsy Programs • Topline data from the Phase 3 X-TOLE2 study of azetukalner in FOS is on track for the first half of March 2026. • Phase 3 X-TOLE3 study of azetukalner in FOS continues to enroll and is intended to support regulatory submissions outside the United States. We have completed an ethnobridging study and shared results with Japan’s Pharmaceutical and Medical Devices Agency, or PMDA. We aligned with PMDA to enroll approximately 60 of the planned 360 X-TOLE3 participants in Japan to support a potential regulatory submission in Japan. X-TOLE3 enrollment outside of Japan is expected to complete in 2026. • Phase 3 X-ACKT study of azetukalner in PGTCS continues to enroll and is intended to support regulatory submissions for an additional epilepsy indication. • We presented 48-month data from the X-TOLE OLE study at the American Epilepsy Society, or AES, annual meeting, reinforcing the long-term efficacy and safety of azetukalner with more than 775 patient-years of exposure data in the OLE. Among participants treated for ≥48 months, reductions in monthly FOS frequency were over 90% from double-blind period baseline, with over 38% achieving at least 12 months of seizure freedom. Depression Programs • Enrollment is ongoing for the Phase 3 X-NOVA2 and X-NOVA3 studies evaluating azetukalner in patients with MDD, with topline data from X-NOVA2 expected in H1 2027. • Phase 3 X-CEED study evaluating azetukalner in patients with BPD I or II is underway. Early-Stage R&D We continue to expand our portfolio of innovative potassium and sodium channel modulators. Nav1.7 and Kv7 are important targets for pain and have been developed using our strong heritage in human genetics, deep understanding of ion channel biology, and expertise in novel chemistries to design potent, selective ion channel modulators. Pain • Phase 1 SAD/MAD study in healthy adult participants is underway for XEN1701 targeting Nav1.7. Study completion is expected in 2026 to support initiating a Phase 2 proof-of-concept study in acute pain. • Phase 1 SAD/MAD study in healthy adult participants is underway for XEN1120 targeting Kv7. Study completion is expected in 2026 to support initiating a Phase 2 proof-of-concept study in acute pain. Epilepsy • IND-enabling studies are ongoing for our Nav1.1 program. Pre-clinical data suggest that targeting Nav1.1 could potentially address the underlying cause and symptoms of Dravet Syndrome. 74 Partnered Program • In collaboration with Neurocrine Biosciences, a Phase 1 study is ongoing for NBI-921355, an investigational, selective inhibitor of voltage-gated sodium channels Nav1.2 and Nav1.6 in development for the potential treatment of certain types of epilepsy. We have funded our operations primarily through the sale of equity securities, funding received from our licensees and collaborators, and debt financing. We recognized revenue from collaboration agreements of $7.5 million for the year ended December 31, 2025. We did not recognize any revenue in the years ended December 31, 2024 and 2023. To date, we have not had any products approved for sale and have not generated any revenue from product sales. We do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for a product candidate, which we expect will take a number of years, if ever, and the outcome of which is subject to significant uncertainty. We will continue to require additional capital to develop our product candidates and fund operations for the foreseeable future. We have incurred net losses in each year since inception and expect to continue to incur net losses for the foreseeable future. Our net losses were $345.9 million, $234.3 million, and $182.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, we had an accumulated deficit of $1,245.4 million. Substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We anticipate that our operating expenses will increase substantially, particularly as we: • prepare for the potential commercial launch of azetukalner; • invest significantly to further develop azetukalner for our current and future indications; • advance additional product candidates into pre-clinical and clinical development; • seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies; • require the manufacture of larger quantities of our product candidates for clinical development and potential commercialization; • hire additional commercial, clinical, scientific, management and administrative personnel; • acquire or in-license other assets and technologies; • maintain, protect and expand our intellectual property portfolio; and • create additional infrastructure to support our operations and any future commercialization efforts. Financial Operations Overview Revenue To date, our revenue has been primarily derived from collaboration and licensing agreements and we have not generated any revenue from product sales. If our development efforts for our product candidates are successful and result in regulatory approval, we may generate revenue in the future from product sales. We cannot predict if, when, or to what extent we will generate revenue from the commercialization and sale of our product candidates. We may never succeed in obtaining regulatory approval for any of our product candidates. We may also generate revenue in the future from payments as a result of license or collaboration agreements for any of our product candidates or intellectual property, such as our license and collaboration agreement with Neurocrine Biosciences, or the Neurocrine Collaboration, described in “Business — Collaborations, Commercial and License Agreements” and “Note 10” of the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We cannot provide assurance as to the timing of future milestone or royalty payments under the Neurocrine Collaboration, or that we will receive any of these payments at all. In February 2025, NBI-921355, a Nav1.2 and Nav1.6 sodium channel inhibitor in development for the potential treatment for certain types of epilepsy, progressed into a Phase 1 clinical study in healthy adult participants, triggering a $7.5 million milestone, which was recognized as revenue. 75 Operating Expenses The following table summarizes our operating expenses for the years ended December 31, 2025, 2024 and 2023 (in thousands): [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["","","2025","","","2024","","","2023"],["Research and development","","$","300,938","","","$","210,394","","","$","167,512"],["General and administrative","","","79,632","","","","68,904","","","","46,542"],["Total operating expenses","","$","380,570","","","$","279,298","","","$","214,054"]] [[/GREPCENT_TABLE]] Research and Development Expenses Research and development expenses represent costs incurred to conduct development of our proprietary product candidates and our drug discovery efforts, including any acquired or in-licensed product candidates or technology, and costs to support any partnered product candidates. Research and development expenses consist of costs incurred in performing research and development activities, including: • personnel-related expenses, consisting of salaries, benefits and stock-based compensation for employees engaged in scientific research and development; • third-party expenses incurred in connection with the pre-clinical and clinical development of our product candidates, including under agreements with CROs; • third-party expenses relating to formulation, process development and manufacture of drug substance and drug product for use in our pre-clinical testing, clinical studies and potential commercial supply; • third-party acquisition, license and collaboration fees; • laboratory consumables; and • certain indirect costs incurred in support of overall research and development activities, including facilities, depreciation and information technology costs. Project-specific expenses reflect costs directly attributable to our clinical development candidates for which we have incurred significant expenses. All remaining research and development expenses are reflected in pre-clinical, discovery and other program expenses. At any given time, we have several active early-stage research and drug discovery programs. Our personnel and infrastructure are typically deployed over multiple projects and are not directly linked to any individual internal early-stage research or drug discovery program. Therefore, we do not maintain financial information for our internal early-stage research and internal drug discovery programs on a project-specific basis. We expense all research and development costs as incurred. Payments we make for research and development services prior to the services being rendered are recorded as prepaid assets in our consolidated balance sheets and are expensed as the services are provided. Costs for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and third-party service providers. We expect that our research and development expenses will increase substantially in the future as we continue to invest in research and development activities related to developing our product candidates, including investments in manufacturing, as our programs advance into later stages of development and we continue to conduct clinical studies, advance our internal drug discovery programs into pre-clinical development and continue our early-stage research. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size, scope and duration of later-stage clinical studies. Clinical development timelines, likelihood of regulatory approval, and commercialization and associated costs are uncertain, difficult to estimate, and can vary significantly. The process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming, and the successful development of our product candidates is highly uncertain. As a result, we cannot accurately estimate or know the nature, timing and cos [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/XENE/mda/fy2025/ All MD&A years: /company/XENE/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/XENE/mda/fy2024/): filed 2025-02-27; accession 0000950170-25-029149 (https://www.sec.gov/Archives/edgar/data/1582313/000095017025029149/xene-20241231.htm) - [FY 2023 MD&A](/company/XENE/mda/fy2023/): filed 2024-02-29; accession 0000950170-24-023177 (https://www.sec.gov/Archives/edgar/data/1582313/000095017024023177/xene-20231231.htm) - [FY 2022 MD&A](/company/XENE/mda/fy2022/): filed 2023-03-01; accession 0000950170-23-005582 (https://www.sec.gov/Archives/edgar/data/1582313/000095017023005582/xene-20221231.htm) - [FY 2021 MD&A](/company/XENE/mda/fy2021/): filed 2022-03-01; accession 0001564590-22-008060 (https://www.sec.gov/Archives/edgar/data/1582313/000156459022008060/xene-10k_20211231.htm) ## FDA-approved drug applications Applications listed under this company's exact-matched sponsor name. Approved applications only. No resolved FDA applications were found for this company under the exact-unique, approved-only publish rule. Sponsor as listed in Drugs@FDA at retrieval (2026-08-07); FDA sponsor listings can lag ownership transfers. This list covers FDA applications whose listed sponsor name maps to this company by an exact-unique match; applications listed under sponsor names not mapped to this company (subsidiaries, name variants, joint ventures) are absent. ## Macro cross-references Indicators mapped to this company's SIC classification (industry 2834 Pharmaceutical Preparations) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/XENE.md · JSON record: /company/XENE.json · verified financials: /company/XENE/financials.json / /company/XENE/financials.csv · machine TOC for the whole site: /llms.txt