XenoPort, Inc. (XNPT - Snapshot Report) 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 - Snapshot Report) in the year-ago period.
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 - Analyst Report) 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 30, 2013.
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 - Snapshot Report) look well positioned carrying a Zacks Rank #1 (Strong Buy).