On this page of StockholderLetter.com we present the latest annual shareholder letter from Xenon Pharmaceuticals Inc. — ticker symbol XENE. Reading current and past XENE letters to shareholders can bring important insights into the investment thesis.

 •  4/26/2024 Letter Continued (Full PDF)
 •  4/27/2023 XENE Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  XENE Benford's Law Stock Score = 78

XENE Shareholder/Stockholder Letter Transcript:

XENON PHARMACEUTICALS INC.
2023 ANNUAL REPORT


April 2024
To Our Shareholders:
Based on the considerable progress made in 2023, we are well positioned to continue to execute on our
broad XEN1101 clinical program, which represents the most advanced potassium channel, or Kv7, modulator in
clinical development for multiple indications. Importantly, we generated data in our Phase 2 proof-of-concept
X-NOVA clinical trial that demonstrated clinically meaningful drug activity in depression, in addition to further
supporting XEN1101   s highly differentiated profile in epilepsy. With a strong financial position, we are actively
planning for late-stage development of XEN1101 in depression and evaluating potential development in
additional neurological indications, as we believe this mechanism potentially has broad applicability.
We remain focused on our goal to improve outcomes for epilepsy patients where there continues to be a
significant need for new, differentiated anti-seizure medications. The data from our Phase 2b X-TOLE clinical
trial in patients with focal onset seizures demonstrated impressive efficacy, with all primary and secondary
seizure reduction endpoints reaching statistical significance across all dose groups. The ongoing XEN1101
Phase 2b X-TOLE open label extension study has now collected over six hundred patient years of data, and our
interim analyses completed to date have continued to demonstrate compelling efficacy data and seizure freedom
rates, while building upon the safety and tolerability profile of XEN1101.
Our Phase 3 X-TOLE2 and X-TOLE3 clinical trials, designed closely after the Phase 2b X-TOLE
clinical trial, are evaluating XEN1101 in patients with focal onset seizures. Of the estimated three million adults
living with epilepsy in the U.S., approximately 1.8 million adults experience focal onset seizures, and despite
the availability of multiple anti-seizure medications, a substantial unmet medical need exists. Also underway,
our Phase 3 X-ACKT clinical trial is intended to support potential regulatory submissions in an additional
epilepsy indication of primary generalized tonic-clonic seizures, where there also exists a need for new
therapeutics.
Based on topline data from our XEN1101 Phase 2 proof-of-concept X-NOVA clinical trial, which
demonstrated clinically meaningful drug activity in depression, we are advancing XEN1101 into late-stage
development in major depressive disorder. In 2022, approximately 21 million adults were diagnosed with major
depressive disorder in the U.S. With its unique mechanism of action, we believe that XEN1101 has the potential
to offer a compelling clinical profile for patients with major depressive disorder who are seeking alternatives to
the currently available therapeutic options.
In addition to our clinical stage programs, we continue to conduct important pre-clinical work that
leverages our expertise in ion channel drug discovery, with a focus on our growing our leadership in the Kv7
space as well as exploring new potential opportunities targeting Nav1.1 for seizure disorders and Nav1.7 for
pain.

We are proud of our prudent fiscal management and have established a strong cash position that extends
into 2027, allowing us to support the completion of our XEN1101 Phase 3 epilepsy studies and late-stage
clinical development of XEN1101 in major depressive disorder.
We want to thank the dedicated directors on our Board and wish to extend our deep gratitude to two of
our longest-serving board members     Mohammad Azab and Simon Pimstone     for their service to Xenon over
many years. Mohammad served as a Xenon Board member since 2003 while contributing to various Board
committees and played a key role in shaping our strategic plan and focus on the late-stage development of
XEN1101. As a co-founder of Xenon, it is Simon   s vision and drive that has helped position Xenon today as a
premier neuroscience company focused on developing and delivering innovative medicines to improve the lives
of patients. We have all benefitted immensely from Simon   s guidance, leadership, and mentorship, most
recently in the role of Board Chair.
We are grateful to all of our employees who are deeply committed to Xenon   s mission. There is a sense
of excitement and anticipation across the entire Xenon team, as we see the immense opportunity for XEN1101
in epilepsy, depression, and potentially other indications. Further, we believe that our depth of experience in ion
channel drug discovery and development will help us continue to advance and grow a robust product pipeline,
beyond XEN1101.
Finally, we thank our new and long-term shareholders for their continued support. We intend to build
upon the success and the milestone events achieved to date and look forward to sharing updates on our
continued progress.
/s/ Ian C. Mortimer
/s/ Dawn Svoronos
Ian C. Mortimer
President & Chief Executive Officer
Dawn Svoronos
Lead Independent Director
Certain statements contained in this letter may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and Canadian securities laws. A detailed discussion of such forwardlooking statements and the related risks and uncertainties is included in our Annual Report on Form 10-K included herewith.



 4/26/2024 Letter Continued (Full PDF)