XenoPort, Inc. (Nasdaq: XNPT) announced today a strategic shift
to focus on and maximize the value of its commercial product,
HORIZANT® (gabapentin enacarbil) Extended Release Tablets. As part
of this shift, XenoPort will discontinue development of XP23829 on
its own and seek to partner this and other high potential
development stage assets.
In connection with the decision to focus on commercializing
HORIZANT, Ronald W. Barrett, Ph.D., has retired as Chief Executive
Officer and as a Director of XenoPort, effective immediately.
Vincent J. Angotti, Executive Vice President and Chief Operating
Officer, who has spearheaded the commercialization of HORIZANT, has
been named Chief Executive Officer and has joined XenoPort’s Board
of Directors. Dr. Barrett will continue to work with XenoPort in an
advisory role, with a primary focus on ensuring a smooth transition
and advising on potential partnering activities for the company’s
development stage assets, including XP23829.
Mr. Angotti has nearly 25 years of operations and
commercialization experience in both large and start-up specialty
pharmaceutical companies. Prior to joining XenoPort in May 2008,
Mr. Angotti held several positions with Reliant Pharmaceuticals,
Inc., the most recent of which was Senior Vice President of Sales
and Marketing. In this senior leadership role, he was responsible
for launching a portfolio of products including LOVAZA, leading to
the acquisition of Reliant by GlaxoSmithKline in 2008 for $1.7
billion. Prior to Reliant, Mr. Angotti held several positions at
Novartis Pharmaceuticals Corporation, most recently as Executive
Director, Field Operations. Mr. Angotti received a B.S. from
Cornell University and an M.B.A. from Columbia University.
XenoPort also announced that John G. Freund, M.D., has been
named Chairman of XenoPort’s Board of Directors. Dr. Freund has
been a member of XenoPort’s Board since 1999 and has served as its
Lead Independent Director since July 2008.
“On behalf of the Board,” Dr. Freund stated, “I would like to
thank Ron for his dedication and many contributions since
co-founding XenoPort in 1999, including the discovery, development
and approval of HORIZANT. Ron recruited Vince to lead the
commercialization of HORIZANT and, together with the management
team, they have meaningfully grown HORIZANT sales. The Board is
thrilled to welcome Vince to the role of CEO and has confidence he
will apply his operational and commercial experience to maximize
the value of HORIZANT.”
Mr. Angotti stated, “I am excited by the opportunity to lead the
company with our new strategic focus. Since XenoPort’s launch of
HORIZANT in mid-2013, we have successfully taken a staged approach
to its commercialization. With the recent expansion of our HORIZANT
Neuroscience Health Specialist team to 120 representatives in July,
I believe we are well positioned to expand our educational efforts
and increase access to HORIZANT and thereby meaningfully benefit
many more patients.”
HORIZANT Continues to Show Strong Growth
XenoPort noted that HORIZANT continues to show strong growth
following the re-launch by XenoPort after reacquisition in May
2013. HORIZANT has achieved the following growth since the second
quarter of 2013 with substantially fewer sales representatives than
deployed by its former partner:
2Q13
2Q15 % Change New Prescriptions*
5,355 14,221
+166% Total Prescriptions* 9,173
26,271 +186% Tablets*
377,753 1,379,341
+265% Net Sales $1.6 million
$8.2 million +413%
*Data from National Prescription Audit
from IMS
Expense Reduction
In connection with XenoPort’s strategic shift, the company also
announced that it will be implementing a reduction in work force.
Restructuring costs, primarily related to compensation and benefit
expenses as well as severance costs related to its departing CEO,
are expected to be approximately $3.2 million and result in annual
future cash savings of approximately $6.7 million. In addition,
future expenses will be reduced due to the discontinuation of
late-stage development of XP23829. The company ended the second
quarter of 2015 with $170.4 million in cash, cash equivalents and
short-term investments.
About HORIZANT
HORIZANT, discovered and developed by XenoPort, was approved in
the United States in April 2011 for the treatment of
moderate-to-severe primary restless legs syndrome (RLS) in adults
and in June 2012 for the management of postherpetic neuralgia (PHN)
in adults. The most common adverse reactions for adult patients
with moderate-to-severe primary RLS receiving HORIZANT were
somnolence/sedation, dizziness, headache, nausea and fatigue. The
most common adverse reactions for adult patients with PHN taking
HORIZANT were dizziness, somnolence/sedation, headache, nausea and
fatigue. In addition, the National Institute on Alcohol Abuse and
Alcoholism (NIAAA) is currently funding and conducting a trial of
HORIZANT in patients with alcohol use disorder (AUD). XenoPort is
supplying the clinical trial material for this trial. If
successful, it could lead to a new potential option for the
treatment of patients with AUD.
About XenoPort
XenoPort, Inc. is a biopharmaceutical company focused on
commercializing HORIZANT in the United States. XenoPort has entered
into a clinical trial agreement with the NIAAA under which the
NIAAA has initiated a clinical trial evaluating gabapentin
enacarbil as a potential treatment for AUD. REGNITE® (gabapentin
enacarbil) Extended-Release Tablets is being marketed in Japan by
Astellas Pharma Inc. XenoPort has granted exclusive world-wide
rights for the development and commercialization of its
clinical-stage oral product candidate, arbaclofen placarbil, to
Indivior PLC for all indications. XenoPort’s other product
candidates include XP23829, a novel fumaric acid ester prodrug that
is a potential treatment for patients with moderate-to-severe
chronic plaque-type psoriasis and potentially for patients with
relapsing forms of multiple sclerosis, and XP21279, a prodrug of
levodopa that is a potential treatment for patients with idiopathic
Parkinson's disease.
To learn more about XenoPort, please visit the Web site at
www.XenoPort.com.
Forward-Looking Statements
This press release contains "forward-looking" statements,
including, without limitation, all statements related to: the
anticipated benefits and effects related to XenoPort’s announced
restructuring and executive leadership transition; the promotional
efforts and value proposition for HORIZANT, including all
statements related to the anticipated impact of XenoPort’s recent
sales force expansion and anticipated future HORIZANT sales growth;
the possible approval of HORIZANT for the treatment of patients
with AUD; and the value of XenoPort’s development stage assets and
the ability to partner XP23829 and other development stage assets.
Any statements contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Words such as "believe," "can," "could," "plan,"
"potential," "will" and similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are based upon XenoPort's current expectations.
Forward-looking statements involve risks and uncertainties.
XenoPort's actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which
include, without limitation, risks related to: XenoPort's relative
lack of commercialization experience and its ability to
successfully market and sell HORIZANT, including XenoPort's ability
to maintain a sales force comprised of both XenoPort-employed sales
representatives and contract sales representatives, and XenoPort's
reliance on its contract sales organization to maintain sales,
marketing, distribution, supply chain and other sufficient
capabilities to sell HORIZANT; XenoPort's dependence on the success
of its strategies for HORIZANT commercialization, promotion and
distribution, as well as its ability to successfully execute on
these activities and to comply with applicable laws, regulations
and regulatory requirements; the competitive environment for and
the degree of market acceptance of HORIZANT; obtaining appropriate
pricing and reimbursement for HORIZANT in an increasingly
challenging environment; risks related to future opportunities and
plans, including the uncertainties of future financial results and
XenoPort’s ability to attain profitability; risks related to the
impact of the XenoPort’s announced restructuring and reduction in
workforce on XenoPort’s business, including the risk that such
changes could negatively affect XenoPort’s ability to attract or
retain the personnel necessary to enable XenoPort to successfully
commercialize HORIZANT; risks related to executive leadership
transitions, including that fact that such transitions inherently
create uncertainty and can negatively affect business strategy and
execution; XenoPort’s potential inability to partner XP23829 and
its other development stage assets with third parties on acceptable
terms, or at all, including the risk that XenoPort may fail to
realize any return on its investments in such assets. Many of these
and other risk factors are discussed under the heading "Risk
Factors" in XenoPort's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2015 filed with the Securities and Exchange
Commission on August 6, 2015. XenoPort expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the company's expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statements are based.
HORIZANT, REGNITE and XENOPORT are registered trademarks of
XenoPort, Inc.
XNPT2G
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version on businesswire.com: http://www.businesswire.com/news/home/20151001006668/en/
XenoPort, Inc.Jackie Cossmon, 408-616-7220ir@XenoPort.com
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