XenoPort Chops Jobs, Replaces CEO and Shifts Focus in Restructuring

XenoPort Chops Jobs, Replaces CEO and Shifts Focus in Restructuring
October 2, 2015
By Mark Terry, BioSpace.com Breaking News Staff

Santa Clara, Calif.-based XenoPort Inc. , announced yesterday that it is restructuring its company to maximize its HORIZANT (gabapentin encarbil) product, and will cut about 25 jobs. In addition, Ronald Barrett, chief executive officer and director, will retire, effective immediately.

HORIZANT is used to treat adults with moderate-to-severe primary restless leg syndrome (RLS). It will also halt development of XP23829 for moderate-to-severe chronic plaque-type psoriasis.

Barrett will be replaced by Vincent Angotti, who was previously executive vice president and chief operating officer. He will also join the company’s board of directors. Barret will remain as an advisor, particularly in the context of partnerships for the company’s pipeline in development, including XP23829.

Prior to joining XenoPort, Angotti was with Reliant Pharmaceuticals, Inc., most recently as senior vice president of sales and marketing. He played a key role in launching HORIZANT, and with Reliant, was involved in the commercialization of LOVAZA. Reliant was acquired by GlaxoSmithKline in 2008 for $1.7 billion.

On Sept. 15, the company announced positive results in its Phase II clinical trial of the drug for psoriasis. It met its primary endpoint in both the 800 mg daily dosage and 400 mg twice daily doses, showing statistically significant improvement.

At that time, Richard Kim, the company’s chief medical officer, said in a statement, “We are also pleased with the safety and tolerability profile of XP23829 emerging from this study. We believe that this demonstration of efficacy, safety and tolerability of XP23829 could lead to a differentiated product in psoriasis. We also believe that there is potential for the observations from this study to read through to other potential indications such as multiple sclerosis (MS).”

“In the near future,” Barrett said at the time in a statement, “we intend to share these data with psoriasis and multiple sclerosis experts, speak with regulatory authorities regarding next steps and explore potential partnerships that could accelerate the development of XP23829 globally. We recently completed non-clinical development studies and manufacturing activities necessary to support Phase III development and we believe we will be ready to potentially initiate Phase III studies in 2016.”

However, the company reported significant gastrointestinal-related side effects, with almost a third of its 200 subjects dropping out of the trial. Side effects included nausea, vomiting and stomach pain. “XenoPort should stop spending limited resources on a drug that, while active, appears to be inferior to the standard of care in psoriasis,” said Eric Schmidt, an analyst with Cowen & Co. to Reuters.

Company has been volatile all year. On Jan. 14, 2015, shares traded for $9.31, dropped to $5.61 on May 13, rose to $7.72 on Aug. 5. On Sept. 11, shares traded for $7.14, but after news of the side effects, plunged to a current price of $3.72.

The job cuts appear to be related to the termination of the XP23820 program for plaque psoriasis. The company recently expanded its sales force related to HORIZANT in July.

“I am excited by the opportunity to lead the company with our new strategic focus,” said Angotti in a statement. “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.”

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