Xenon Pharmaceuticals Stock Clocks Fresh High on on NBIX Partnership

Xenon and Neurocrine just entered an agreement to develop a new treatment for epilepsy

The shares of Canada-based biotech Xenon Pharmaceuticals Inc (NASDAQ:XENE) are skyrocketing this morning, up 8.4% at $12.83, pacing for a new 14-month high. This pop comes after the firm said it plans to partner with Neurocrine Biosciences (NBIX) to develop a new treatments for epilepsy. Xenon will receive $50 million upfront, and $25 million upon acceptance from the Food and Drug Administration (FDA) as part of the agreement.

Even before today's pop, XENE was seen shooting up the charts, adding 38.5% in November and snapping its five-month losing streak, thanks in part to a major surge late in the month. And while the equity ran out of steam right around the $12.50 region, today it's soaring past the brief ceiling, continuing its long-term move higher on the charts.

Analysts have had high hopes for the drugmaker, with all four in coverage calling it a "strong buy." What's more, the consensus 12-month target price of $21.25 represents a level XENE hasn't touched since 2015.

Despite this positive price action, short interest has risen 17.5% in the last reporting period. It would take two weeks to buy back all these bearish bets at Xenon's average pace of trading too, which could push the equity higher, should some of these bears begin to hit the exits.