XenoPort, Inc. reported fourth quarter 2013 loss of 40 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. Fourth quarter 2013 loss, however, was wider than the year-ago loss of 38 cents per share.
Revenues were $2.9 million in the reported quarter as against $0.5 million in the year-ago period. Revenues, however, lagged the Zacks Consensus Estimate of $4 million.
In 2013, the company reported a loss of $1.81 per share, narrower than the Zacks Consensus Estimate of a loss of $1.86 per share but wider than the year-ago loss of $1.30 per share.
Revenues were $8 million in 2013 as against $21.6 million in the previous year. Revenues however lagged the Zacks Consensus Estimate of $9 million.
Horizant sales grew 34% sequentially to $2.7 million. The company said that it is currently focusing on physician specialists for the commercialization of Horizant. In the fourth quarter of 2013, prescription volume increased by 23% and its pill count increased by 27% sequentially.
We note that Horizant is approved in the US for the treatment of moderate-to-severe primary restless legs syndrome (RLS) as well as the management of postherpetic neuralgia (PHN) in adults.
We remind investors that GlaxoSmithKline plc (GSK - Analyst Report) and XenoPort had a collaboration agreement for Horizant that was terminated in Nov 2012. After the end of the transition period, XenoPort began development, manufacturing and commercialization activities for the drug from Jun 1, 2013.
Research and development (R&D) expenses decreased 65.2% to $3.7 million. This decrease in costs is due to lower costs associated with arbaclofen placarbil and XP23829. Personnel-related costs also declined.
Selling and general administrative expenses increased 137.6% to $17.6 million reflecting higher costs associated with the promotion and commercialization of Horizant.
XenoPort is working on advancing XP23829 into phase III studies for treatment of relapsing forms of multiple sclerosis. The company will also submit an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) for XP23829 for the treatment of moderate-to-severe chronic plaque psoriasis. A phase II study is slated to start by mid-2014.
XenoPort carries a Zacks Rank #3 (Hold). Some other better-ranked stocks in the biopharmaceutical sector include Alexion Pharmaceuticals, Inc. (ALXN - Analyst Report) and Biogen Idec Inc. (BIIB - Analyst Report) . Both these stocks carry a Zacks Rank #1 (Strong Buy).