) reported fourth quarter 2012 loss of 38 cents per share,
narrower than the Zacks Consensus Estimate of a loss of 42 cents
per share and the year-ago loss of 56 cents per share.
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Quarterly revenues were $0.5 million as against $5.4 million in
the year-ago period, narrower than the Zacks Consensus Estimate
of $1 million. Quarterly revenues decreased due to the receipt of
a milestone payment of $5 million in the fourth quarter of 2011,
while no such payment was received this quarter. This was
partially offset by Regnite royalty revenue of $0.1 million in
the reported quarter.
Research and development expenses decreased 15.3% to $10.6
million. Reduction in personnel costs and less investment on
XP21279 reflected the decrease. The candidate is being developed
for the treatment of patients suffering from advanced idiopathic
Selling, general and administrative expenses increased 7.8% to
On Nov 8, 2012, Xenoport and
) terminated the collaboration agreement on Horizant (gabapentin
enacarbil). Glaxo had development and commercial rights of
Horizant in the US. The termination led to the settlement of all
litigations between the two companies. We note that in Apr, 2011,
Horizant received approval from the US Food and Drug
Administration (FDA) for the treatment of restless legs syndrome
Once the transition is complete Xenoport will reacquire the
rights to develop, manufacture and commercialize Horizant in the
US. However, till the transition is complete, GlaxoSmith will be
responsible for the commercialization, promotion and distribution
of Horizant in the US. The transition period is expected to end
on Apr 30, 2013.
As per the termination and settlement, Glaxo bought shares of
Xenoport worth $40 million, at $9.9 per share.
We remind investors that in Feb 2007, Xenoport inked an agreement
with Glaxo for the development and commercialization of Horizant
worldwide excepting territories covered by
Astellas Pharma, Inc
). In Dec 2005, Xenoport gave Astellas the right to commercialize
and develop the drug under the trade name Regnite in Japan,
Korea, the Philippines, Indonesia, Thailand and Taiwan.
As per Glaxo, Horizant reported revenues worth $2.1 million in
the quarter as against $0.8 million in the year-ago quarter.
For the full year, Xenoport incurred a loss of $1.30 per share
wider than the year-ago loss of $1.03 per share. The Zacks
Consensus Estimate reported a loss of $1.34 per share. Full year
revenues decreased 50.3% to $21.6 million narrowly missing the
Zacks Consensus Estimate of $22 million.
Apart from releasing financial results, the company also provided
an update on its pipeline. During the fourth quarter of 2012,
Xenoport completed enrollment of a phase III pivotal trial on
arbaclofen placarbil (AP). We note that Xenoport is developing
arbaclofen placarbil for the treatment of spasticity in patients
suffering from multiple sclerosis (MS). A total of 228
patients were enrolled for the trial.
The company expects topline data from the study in the second
quarter of 2013. Xenoport plans to submit a new drug application
(NDA) by the end of 2013 if the results are positive.
Xenoport, a biopharmaceutical company, carries a Zacks Rank #4
(Sell). Meanwhile, other biopharma stocks like
Array BioPharma, Inc.
) look more favorable carrying a Zacks Rank #2 (Buy).