Despite its recent outperformance, the shares of Xenon Pharmaceuticals ( NASDAQ: XENE ) could offer further upside, JP Morgan argued on Thursday, adding the Canadian biotech to the firm’s Analyst Focus List as a Growth Idea.
With an Overweight rating, the JP Morgan team led by Tessa Romero calls Xenon ( XENE ) “an attractive SMID-cap biotech” and cites the potential of the company’s lead clinical-stage candidate, XEN1101.
“Bolstered primarily by compelling phase 2b X-TOLE data as well as positive physician feedback, we view XEN1101 as having a high probability of success as an adjunctive treatment in its lead indication of focal onset seizures (FOS),” the analysts wrote.
Citing potentially conservative estimates, the firm notes the prospects of XEN1101 in both focal and/or generalized seizures, where peak sales opportunity could reach nearly $1B in the U.S.
Despite the outperformance of Xenon ( XENE ) over the past 12 months, the stock has yet to fully reflect the “potential of XEN1101 to expand to additional high unmet need indications beyond FOS where there is convincing emerging rationale,” Romero and the team wrote.
The Dec. 2023 price target of $55 per share stands ~27% higher than the current average price target for the stock on Wall Street.
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Xenon added to JP Morgan’s analyst focus list citing lead asset