Xenon Pharmaceuticals' stock falls as depression treatment has mixed results in clinical trial

By Eleanor Laise

Company will pursue further development of treatment for major depressive disorder

Shares of Xenon Pharmaceuticals Inc. (XENE) fell 1.6% premarket on Monday after the neurology-focused company released new data from a clinical trial of its lead asset, an experimental depression treatment.

The treatment, XEN1101, produced a clinically meaningful but not statistically significant change in the depression rating scale that served as the study's primary endpoint, Xenon said in a release. The trial involved 168 patients with moderate to severe major depressive disorder.

XEN1101 did produce a statistically significant reduction on another depression rating scale after six weeks, as well as on an assessment of anhedonia, or inability to feel pleasure, Xenon said.

Based on the overall trial results, Xenon is actively exploring further development of XEN1101 in major depressive disorder and potentially other conditions as well, the company said.

Xenon is also developing XEN1101 as a treatment for seizures, which should be the key focus for investors, Leerink Partners analysts wrote in a Nov. 13 research note. They wrote: "We like the stock" regardless of the depression trial results, adding that the stock price dipping below $30 "makes us even more bullish" on the shares.

Xenon shares have dropped 26% in the year to date, while the S&P 500 SPX is up 18.8%.

-Eleanor Laise

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11-27-23 0830ET

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