Xenon Stock at $42: What to Know of a $75 Million Trim Ahead of March Phase 3 Data

Connecticut-based Braidwell disclosed a sale of 1,779,953 shares of Xenon Pharmaceuticals (XENE +1.34%) in its February 17, 2026, SEC filing, an estimated $74.76 million trade based on quarterly average pricing.

What happened

According to a SEC filing dated February 17, 2026, Braidwell reduced its position in Xenon Pharmaceuticals by 1,779,953 shares. The estimated transaction value was $74.76 million, based on the mean unadjusted closing price during the fourth quarter of 2025. At quarter-end, the stake’s value declined by $62.94 million, a figure that reflects both share sales and market price changes.

What else to know

• Braidwell’s Xenon position now represents approximately 2.62% of its 13F AUM after this sale.
• Top five holdings after the filing:
  • NASDAQ:CAI: $210.88 million (8.08% of AUM)
  • NASDAQ:EWTX: $129.31 million (4.95% of AUM)
  • NASDAQ:NBIX: $106.59 million (4.08% of AUM)
  • NYSE:GKOS: $104.10 million (3.99% of AUM)
  • NASDAQ:NUVL: $82.63 million (3.16% of AUM)
• As of February 17, 2026, Xenon shares were priced at $41.66, up approximately 6.4% over the past year and underperforming the S&P 500 by approximately 4.85 percentage points.

Company overview

Company snapshot

• Xenon Pharmaceuticals develops clinical-stage therapeutics targeting neurological disorders, including XEN496 and XEN1101 for epilepsy and related conditions.
• The company operates a research-driven business model focused on advancing proprietary drug candidates through clinical trials and strategic collaborations.
• It targets patients with neurological diseases.

Xenon Pharmaceuticals is a biotechnology company specializing in the development of novel therapeutics for neurological disorders. The company leverages a robust clinical pipeline and strategic partnerships to advance its drug candidates toward regulatory approval. Xenon’s focus on ion channel modulation provides a differentiated approach in the treatment of epilepsy and related conditions.

What this transaction means for investors

Clinical-stage biotech portfolios live and die by milestones, and Xenon is approaching an important one. Phase 3 X-TOLE2 topline data for azetukalner in focal onset seizures are expected in March, with a potential NDA submission in the second half of 2026, and that is the real catalyst here.

This recent reduction trims Braidwell’s position to about 2.6% of assets, keeping Xenon meaningful but not dominant in a portfolio still led by other biotech names. That sizing feels consistent with a strategy that spreads risk across late-stage programs rather than concentrating in a single binary event.

Xenon’s Phase 3 program is broad. X-TOLE2 completed enrollment with 380 patients randomized, and five additional Phase 3 studies are underway across epilepsy and neuropsychiatry. Meanwhile, longer-term data have shown sustained seizure reductions in the open-label extension, adding context to the late-stage push.

The stock is up just about 6% over the past year, lagging many high-flying biotech peers following a volatile stretch for Xenon. Long-term investors should stay focused on whether the looming March data is positive, and if it isn’t, the downside is a good reminder that diversification inside biotech matters.