Xenoport offers up more stock in wake of positive drug trial results

xenoport-logoSanta Clara drug maker Xenoport said in a filing today it plans to sell 2.5 million more shares at $19 each in a secondary stock offering co-managed by top-shelf underwriters Morgan Stanley and Goldman Sachs.

The sale price was 11.6 percent lower than where Xenoport shares closed the day before the stock offering was announced. The company will sell the shares to the underwriters for  $17.91.

Xenoport appears to be taking advantage of good news it released last week when it reported positive preliminary results today from a Phase 2 clinical trial of its treatment for patients with spasticity related to spinal cord injury. The news boosted the company’s stock by 7 percent the day after it was announced.

That gain was fleeting however. The stock has dropped in each of the last four trading sessions and fell $2.13, or 9.9 percent, to $19.37 Wednesday after news of the new stock offering was filed.

While the company has accumulated a combined loss of $241.3 million since its inception in 1999, it was not short on dough, having $143.3 million in cash and short-term investments as of March 31. It burned through $8.85 million during its 2009 first quarter.


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