Investor calls for changes at XenoPort, highlighting Horizant failure

16 October 2013

Clinton Group, one of the 10 largest owners of shares in XenoPort (Nasdaq: XNPT), has written to chief executive Ronald Barrett, calling for change in XenoPort's management and capital allocation.

As indicated in the letter, the Clinton believes XenoPort's assets are worth substantially more than the current stock price implies, but that changes are required for stockholders to realize that value. Clinton believes the fair value for the company is $13 to $16 per share.

Clinton is urging the company to shift capital resources away from marketing the restless-legs syndrome (RLS) drug Horizant (gabapentin enacarbil) toward developing its experimental multiple sclerosis candidate XP23829. The group is also calling for current chief executive Ronald Barrett to be replaced, saying XenoPort needs a chief executive "who will think like an owner, with a mandate to urgently execute on the company's best prospects and grow the value of its most promising asset, [XP23829]."

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK