Xenon hammered after Phase II acne failure

Xenon Pharmaceuticals Inc. (NASDAQ:XENE) plummeted $5.20 (53%) to $4.65 Friday after it said XEN801 missed the primary endpoint in a Phase II trial to treat moderate to severe acne. The candidate failed to significantly reduce total lesion count from baseline to week 12 vs. vehicle gel. Xenon said the results do not support continued development of the topical stearoyl-CoA desaturase-1 (SCD1) inhibitor.

Beyond XEN801, the company expects data in mid-2017 from a Phase IIb trial of TV-45070 to treat postherpetic neuralgia. Teva Pharmaceutical Industries Ltd. (NYSE:TEVA; Tel Aviv:TEVA) has exclusive, worldwide rights to the candidate under a 2012 deal. In 2015, the topical sodium channel sub-type Nav1.7 (SCN9A) blocker failed a Phase IIb trial to treat chronic pain in patients with osteoarthritis of the knee (see BioCentury Extra, July 1, 2015)...