Xenon Pharmaceuticals Inc. (NASDAQ:XENE) Q1 2024 Earnings Call Transcript

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Dr. Chris Von Seggern: Yeah. Happy too, Ian. So prior to the X-NOVA results, we felt very strongly, based on the research that had been conducted to date, that the azetukalner product profile, should the product be approved, is really a market-leading profile. So again, the attributes we’ve historically discussed, novel mechanisms, vaccine, rapidity of onset and ease-of-use attributes are really, really, really compelling when you think about the dozens of alternatives that exist in the focal onset seizure market. And you’re right, historically, we’ve talked about Vimpat, the most recent blockbuster in our category as being a product that we tend to think about as having, really occupying that first branded opportunity where we feel the azetukalner is positioned well, should it come to market.

I think what we’ve learned with the market — with the recent market research in the backbone of the X-NOVA data is that, it really changes the profile of this product and clinicians are even more enthusiastic when you think about the potential benefit in depression. And that’s driven by a couple of factors, the first of which is the mainstay of treatment in our category, levetiracetam, is known to exacerbate mood-related conditions. And we often see clinicians choosing their anti-seizure medication based on the existence or emergence of mood-related disorders. The other component is there’s great evidence in the literature that suggests that as patients progress through lines of therapy, the rate of depression increases and the outcomes for those patients who experience depression get worse or compliance and poorer seizure management and control.

That unmet medical need is amplified in these patients who have comorbid depression and when presented with a profile of a azetukalner that includes a potential benefit in the mood-related category, clinicians just express really significant enthusiasm. And when we think about the market, this sort of moves the thinking from a product like Vimpat, which was exceptionally successful in this market, to a product like Lamotrigine, which, from a category standpoint, is the second most utilized product in our category. And clinicians often point to Lamotrigine beyond seizure benefit derived from a perception of mood benefit in the epilepsy population. So from the recent research and our continued evolution of thinking here, the data emerging from X-NOVA really do change the nature of the opportunity for a azetukalner in the focal onset market.

Operator: Thank you. And that completes our question-and-answer session. I will now turn the call back over to Sherry Aulin for closing remarks.

Sherry Aulin: Thank you all very much for joining us on our Q1 2024 call today. Operator, you may now end the call.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.

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