Shares of Xenoport Inc. (NASDAQ:XNPT) dropped almost to the bottom of their 52-week range early Monday, opening at $5.04 after the company terminated its late stage arbaclofen placarbil (AP, previously XP19986) program in spasticity due to multiple sclerosis (MS) after a pivotal Phase III trial failed to demonstrate statistically significant improvement compared to placebo.
The stock lost $1.03 on the day, or 15.3 percent, closing at $5.72.
The Santa Clara, Calif.-based company said it would plow additional resources into FDA-approved Horizant (gabapentin enacarbil) in restless leg syndrome (RLS) and postherpetic neuralgia (PN) after ending a troubled partnership with GlaxoSmithKline plc (GSK) at the end of April and regaining full rights to the drug.
AP is an oral, transported prodrug of the R-isomer of baclofen, a selective GABA-B agonist. Xenoport holds all rights to the candidate, which previously was studied in