A Medical Device Daily

XenoPort (Santa Clara, California) said it has obtained commitments from institutional investors to purchase nearly $40 million of its common stock and warrants in a registered direct offering.

XenoPort will sell 1,889,467 newly issued shares of its common stock and warrants to purchase 283,420 shares of common stock at a purchase price of $21.17 per unit, with each unit consisting of one share of common stock and one warrant to purchase 0.15 of a share of common stock.

The warrants are immediately exercisable at $25.40 per share and will expire five years from the date of issuance.

The financing was led by funds affiliated with Maverick Capital, with participation by funds affiliated with Venrock. The net proceeds are expected to be nearly $39.7 million after offering expenses. This transaction is expected to close on or prior to Jan. 5.

The shares are being offered directly by XenoPort pursuant to an automatically effective shelf registration statement filed with the Securities and Exchange Commission. The public offering is being made only by means of a prospectus, free writing prospectus, and prospectus supplement.

XenoPort is focused on developing a portfolio of internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to improve the therapeutic benefits of existing drugs.