Xenon Pharmaceuticals Inc. Segments Disclosure
The Company operates as a reportable segment dedicated to discovering, developing, and delivering life-changing therapeutics for patients in need. The Company has no products approved for sale and has not generated any revenue from product sales. The Company’s acts as the CODM and manages the Company’s operations on a consolidated basis. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.
The CODM evaluates the Company’s performance and allocates resources to the operations of the Company on a total company basis. Managing and allocating resources on a consolidated basis enables the CEO to assess the overall level of resources available and how to best deploy these resources across functions, therapeutic areas and research and development projects that are in line with the Company’s long-term company-wide strategic goals. The CODM uses net loss to monitor budget versus actual results and to analyze cash flows in assessing performance of the segment and allocating resources. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets, with a majority of these assets located in the United States.
The following table presents information about reported segment revenues, significant segment expenses, and segment loss:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Collaboration revenue |
|
$ |
7,500 |
|
|
$ |
— |
|
|
$ |
— |
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|
|
|
|
|
|
|
|
|
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Less: |
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|
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|
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Direct external research and development costs |
|
|
|
|
|
|
|
|
|
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Azetukalner |
|
|
165,950 |
|
|
|
106,806 |
|
|
|
89,303 |
|
Pain programs (XEN1701, XEN1120) |
|
|
7,510 |
|
|
|
4,795 |
|
|
|
— |
|
Pre-clinical, discovery and other programs |
|
|
24,387 |
|
|
|
16,751 |
|
|
|
20,704 |
|
Personnel-related expenses |
|
|
89,703 |
|
|
|
68,340 |
|
|
|
47,739 |
|
Stock-based compensation |
|
|
53,707 |
|
|
|
50,717 |
|
|
|
32,372 |
|
Other research and development costs |
|
|
12,519 |
|
|
|
11,232 |
|
|
|
9,560 |
|
Other general and administrative costs |
|
|
26,794 |
|
|
|
20,657 |
|
|
|
14,376 |
|
Interest income |
|
|
(26,828 |
) |
|
|
(41,943 |
) |
|
|
(27,620 |
) |
Other segment items(1) |
|
|
(332 |
) |
|
|
(3,025 |
) |
|
|
(4,041 |
) |
Net loss |
|
|
(345,910 |
) |
|
|
(234,330 |
) |
|
|
(182,393 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.