Arbor Pharma to buy XenoPort in $467 million deal

Shares of US drugmaker XenoPort (Nasdaq: XNPT) rocketed 56.59% to $6.89 on Monday on the news that Arbor Pharmaceuticals plans to acquire the company in a deal valuing it at about $467 million.

The companies have signed a definitive agreement under which privately-held Arbor will acquire XenoPort for $7.03 per share in cash, or a total equity value of around $467 million. The purchase price per share represents a 60% premium to the closing price of XenoPort shares on May 20, 2016, said Arbor.

“We are pleased to be adding Horizant [gabapentin enacarbil] and the XenoPort pipeline to the growing portfolio of Arbor products,” said Ed Schutter, president and chief executive of Arbor. “We believe that XenoPort’s lead product Horizant offers patients and physicians a valuable treatment option for moderate-to-severe primary restless legs syndrome and postherpetic neuralgia. The XenoPort sales team has done an excellent job of growing Horizant, and we look forward to supporting them to continue this significant momentum,” he noted.