10 Best Mid-Cap Healthcare Stocks To Buy Now

2. Xenon Pharmaceuticals Inc. (NASDAQ:XENE)

Hedge Fund Holders: 51 

Xenon Pharmaceuticals (NASDAQ:XENE) has emerged as one of the most promising mid-cap stocks in the biopharmaceutical sector, particularly in the field of neuroscience. The company specializes in developing innovative therapeutics for neurological disorders, with a focus on epilepsy and other central nervous system (CNS) conditions.

Xenon’s lead candidate, XEN1101, is currently in Phase 3 trials for focal onset seizures. In its Q2 2024 financial results, Xenon reported continued progress in its Phase 3 epilepsy program. The company also highlighted the successful completion of patient enrollment in X-TOLE2, a key milestone in advancing its lead candidate XEN1101.

Beyond epilepsy, Xenon Pharmaceuticals (NASDAQ:XENE) is exploring XEN1101’s potential in other neurological disorders, including major depressive disorder (MDD). This expansion into new therapeutic areas could substantially increase the drug’s market potential and drive future revenue growth.

Christopher Kenny, the Pharmaceutical/Biotech industry executive and board-certified neurologist at Xenon Pharmaceuticals (NASDAQ:XENE) mentioned in the Q2 earnings call transcript:

“Beginning with our Phase 3 epilepsy program, which includes X-TOLE2 and X-TOLE3 in focal onset seizures and X-ACKT in primary generalized tonic-clonic seizures, our Phase 3 FOS studies continue to advance with the first top-line data readout of X-TOLE2 anticipated in the second half of 2025. Our plan remains to submit results from X-TOLE2, along with the existing data package from our Phase 2b X-TOLE clinical trial and additional safety data from other clinical trials to meet regulatory requirements in the U.S. for approval.”

As of Q2 2024, around 51 hedge fund holders held stakes in the stock with VenBio Select Advisor being the largest stakeholder with 5,666,666 shares worth $220,943,307.