The days of talking about XenoPort (NASDAQ:XNPT)
as a biotech are pretty much over, as the company has given up
developing '829 and '279 on its own and refocused its efforts on
maximizing the potential of its restless leg and postherpetic neuralgia
(or PHN) drug Horizant. Unfortunately, XenoPort also really isn't a
specialty pharmaceutical company either, as the company has no other
marketed products and still lacks the scale (and the resources) to
market Horizant to full effect.
The best outcome for XenoPort would appear to be a sale
of the company to another pharmaceutical company with the primary care
sales infrastructure to make Horizant a lucrative "drag and drop"
addition. I believe such a transaction is worth about $6.50 to Horizant
today, but I believe the shares would be worth far less in a go-it-alone
scenario due to a slower revenue ramp and a lack of operating leverage.
I don't presently see any meaningful value in out-licensing the
portfolio.
Continue here:
Xenoport Arguably Undervalued, But Low On Options
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