Xenon Pharmaceuticals (XENE) saw its stock price plummet 12.59% in intraday trading on Tuesday, following the release of its first quarter 2025 financial results and subsequent analyst actions. The clinical-stage biopharmaceutical company's stock took a hit as investors reacted to widening losses, despite the company beating revenue expectations.

According to the earnings report, Xenon posted a Q1 net loss of $0.83 per diluted share, compared to a loss of $0.62 in the year-ago quarter. While this loss was less than the $0.91 per share loss analysts had predicted, it still represents a significant widening of the company's deficit. Revenue for the quarter came in at $7.5 million, surpassing analyst expectations of $2.2 million. However, the market seemed to focus more on the expanding losses, triggering a sell-off.

Adding to the downward pressure, several analysts adjusted their price targets for Xenon Pharmaceuticals. Wells Fargo cut its target price to $47 from $50, while RBC adjusted its price target to $55 from $58, maintaining an Outperform rating with Speculative Risk. These adjustments, coupled with the wider losses, appear to have dampened investor sentiment despite the company's long-term positive outlook and sufficient cash to fund operations into 2027. As trading continues, investors will be closely watching how Xenon's clinical pipeline progresses and whether the company can narrow its losses in future quarters.