Trading Options with an Edge
Select Page

Hawk’s Nest

Xenon (XENE) Small Cap Biotech with Unusual Bullish Options for Epilepsy Data

by | Jun 22, 2021

Xenon Pharma (XENE) interesting with the 335 ITM October $22.50 puts sold to open on 6/21 for $300K premium, also has 1935 October $20 calls in open interest, small accumulation with 3/23 the most notable as 500 added near $4.70. XENE is forming a nicely weekly flag with the rising 21-week moving average supportive. XENE is a clinical stage biopharmaceutical company committed to developing innovative therapeutics to improve the lives of patients with neurological disorders. XENE is advancing a novel product pipeline of neurology-focused therapies to address areas of high unmet medical need, with a focus on epilepsy. XENE has a market cap of $764M and trades 2.8X cash. XENE has multiple mid-to-late stage trials underway with XEN496 for pediatric epilepsy in Phase 3. XEN1101 is a novel only-in-class channel modulator to treat adult focal seizures. XENE has partner programs ongoing with NBIX, FLXN. The catalyst for October calls may be XEN 1101 topline results for Phase2b seen for Q321 while XEN007 also has topline results due in 2H21. On XEN1101 management noted “This upcoming data readout represents a notable inflection point for Xenon and an opportunity to drive XEN1101 forward into a late stage pivotal program.” Leerink sees XENE’s key assets relatively de-risked with potential major upside to peak sales.