Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Xenoport Climbs as Investors Bet on Experimental Drug for MS


Next month, the company is expected to announce very early clinical results for a drug being tested for multiple sclerosis.

Shares of Xenoport rose 3% to $11.10 midday Thursday.

Here's more of the backstory of the company: Xenoport developed a drug for the condition known as restless leg syndrome with GlaxoSmithKline (NYSE:GSK) and Japanese pharmaceutical maker Astellas. Glaxo has rights to sell the drug, known as Horizant, in the US. Astellas sells the product in Japan and five other Asian countries under the brand name Regnite.

In June, Glaxo and Xenoport won approval to sell Horizant in the US for the additional use of treating pain from shingles. That approval came even as the two companies were fighting in court over terms of their collaboration.

While Xenoport will get payments from sales of its only approved drug, investors are looking ahead to the company's possible future approvals. Xenoport is in the late stages of testing another drug, arbaclofen placarbil, to treat muscle spasms in people with multiple sclerosis. The company expects top-line data from the trial in the first quarter of next year. If the drug works, Xenoport expects to file for US approval in the second half of next year. If approved, the drug may hit the market as soon as 2014. The company also has a drug in the mid-stages of development to treat Parkinson's. But, clearly, a large share of the stock's current valuation is tied up in the Phase I drug. If the drug doesn't pan out, expects a sizable drop in the shares.

Twitter: @brettchase

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos