Xenon Pharmaceuticals (XENE) saw its stock price plummet 6.53% in pre-market trading on Tuesday, following the release of its first quarter 2025 financial results. The biotech company, despite beating analyst expectations, faced a negative market reaction as investors digested the widening losses compared to the previous year.

The company reported a quarterly loss of $0.83 per share, which was better than the Wall Street consensus estimate of a $0.91 loss. Revenue for the quarter came in at $7.5 million, significantly surpassing analyst expectations of $1.11 million to $2.2 million. However, the reported loss was wider than the $0.62 per share loss recorded in the same quarter last year, which seems to have overshadowed the better-than-expected results.

Despite the pre-market plunge, Xenon Pharmaceuticals maintains a positive long-term outlook. The company stated that based on current operating plans, it anticipates having sufficient cash to fund operations into 2027. However, the market's immediate reaction suggests that investors may be concerned about the pace of the company's progress towards profitability in the highly volatile biotech sector. As trading opens, all eyes will be on Xenon to see if the stock can recover from this early morning setback.