Xenon Pharma dips, despite selling pain drug for up to $128 million

Shares of Canada-based Xenon Pharmaceuticals (Nasdaq: XENE) were down 1.9% at $9.33 by mid-morning today, despite revealing a lucrative licensing deal for its pain drug candidate XEN402.

The company has entered into a definitive agreement that provides US drugmaker Flexion Therapeutics (Nasdaq: FLXN) with the global rights to develop and commercialize XEN402, a NaV1.7 inhibitor, for the management of post-operative pain. Flexion gained 3.3% to $13.75 on the news.

Flexion’s new preclinical program, known as FX301, will consist of XEN402 formulated for extended release from a thermosensitive hydrogel. The initial development of FX301 is intended to support administration as a peripheral nerve block for control of post-operative pain. Within minutes following injection, the thermosensitive formulation has been shown to transition from a liquid to a gel, an effect that provides local delivery of XEN402 near target nerves for up to a week.