XenoPort, Inc. ( XNPT ) reported first
quarter 2013 loss of 50 cents per share, wider than the Zacks
Consensus Estimate of a loss of 42 cents and the year-ago loss of
26 cents per share.
Quarterly revenues were $0.5 million as against $10.4 million in
the year-ago period. Revenue in the reported quarter was also below
the Zacks Consensus Estimate of $1 million. The revenue shortfall
was due to the recognition of a milestone payment of $10 million
from Astellas Pharma, Inc. ( ALPMY ) in the
Research and development (R&D) expenses increased 9.6% to
$13.4 million. The increase in costs in developing XP23829 and
arbaclofen placarbil (AP) resulted in higher R&D expenses.
Selling and general administrative expenses increased 45.1% to
$10.7 million. Higher professional fees, commercialization costs as
well as compensation and benefits costs led to the increase.
Meanwhile, XenoPort is currently working with
GlaxoSmithKline plc ( GSK ) on the Horizant
stock-out situation. Earlier this month, XenoPort had announced
that Glaxo is facing manufacturing delays regarding Horizant in the
US thereby leading to product shortage. We note that Horizant is
approved in the US for the treatment of moderate-to-severe primary
restless legs syndrome (RLS) as well as for the management of
postherpetic neuralgia (PHN) in adults.
We remind investors that Glaxo and XenoPort had a collaboration
agreement for Horizant that was terminated in Nov 2012. Glaxo holds
commercialization rights through the transition period, which is
slated to end on Apr 30, 2013.
Following the transition period, XenoPort will develop,
manufacture and commercialize Horizant in the US effective May 1,
2013. Glaxo will continue to supply Horizant to XenoPort until Oct
Glaxo is working on solving the manufacturing issues with its
contract manufacturers. XenoPort currently expects fresh stock to
be available in the market in June. The company even stated that
backorders will be addressed once the supply is available.
As per Glaxo, Horizant's first quarter sales were $1.2 million.
However, because of the stock-out, no sales of Horizant were
recorded in March.
Apart from releasing its financial results, XenoPort provided an
update on its pipeline. XenoPort completed patient dosing in a
phase III pivotal study of AP with top-line results due in the
second quarter of this year. AP is being developed for the
treatment of spasticity in multiple sclerosis patients.
XenoPort, a biopharmaceutical company, carries a Zacks Rank #4
(Sell). Meanwhile, other biopharma stocks like UCB
( UCBJF ) look
well positioned carrying a Zacks Rank #1 (Strong Buy).ASTELLAS PHARMA (ALPMY): Get Free ReportGLAXOSMITHKLINE (GSK): Free Stock Analysis
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