Xenon Pharmaceuticals Stock Clocks Fresh High on on NBIX Partnership

The firm will receive $50 million up front as part of the agreement

by Lillian Currens

Published on Dec 2, 2019 at 9:56 AM
Updated on Dec 2, 2019 at 9:56 AM

The shares of Canada-based biotech Xenon Pharmaceuticals Inc (NASDAQ:XENE) are skyrocketing this morning, up 8.4% at $12.83, pacing for a new 14-month high. This pop comes after the firm said it plans to partner with Neurocrine Biosciences (NBIX) to develop a new treatments for epilepsy. Xenon will receive $50 million upfront, and $25 million upon acceptance from the Food and Drug Administration (FDA) as part of the agreement. 

Even before today's pop, XENE was seen shooting up the charts, adding 38.5% in November and snapping its five-month losing streak, thanks in part to a major surge late in the month. And while the equity ran out of steam right around the $12.50 region, today it's soaring past the brief ceiling, continuing its long-term move higher on the charts.

Analysts have had high hopes for the drugmaker, with all four in coverage calling it a "strong buy." What's more, the consensus 12-month target price of $21.25 represents a level XENE hasn't touched since 2015. 

Despite this positive price action, short interest has risen 17.5% in the last reporting period. It would take two weeks to buy back all these bearish bets at Xenon's average pace of trading too, which could push the equity higher, should some of these bears begin to hit the exits. 


a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Roller Coaster Week Defined by Trade Headlines, Jobs Report
The Dow made outsized moves in both directions this week
Needham is Buying Trade Desk Ahead of the 2020 Election
Trade Desk stock has more than doubled in 2019
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.