XenoPort, Inc. (NASDAQ:XNPT) shares jumped 56.36% on Tuesday’s US session followed by an additional 0.29% increase to $6.90 in after-hours trading.
XenoPort, Inc. (NASDAQ:XNPT) shares are now trading near their 52-week high of $7.86 after the company announced Arbor Pharmaceutical’s acquisition plans. Arbor will purchase all outstanding shares at $7.03 per share for a total of $467 million. This transaction is still pending approval from the company’s board of directors and shareholders, but it is expected to close by the third quarter of the year. In addition, the US government has yet to approve the merger under the Hart-Scott-Rodino Antirust Improvements Act.
Arbor Pharmaceuticals is a privately-held maker of drugs for the cardiovascular, hospital, and pediatric markets. It employs 500 sales people who promote 20 NDA or ANDA approved products. XenoPort and Arbor working together could enhance sales of HORIZANT, which already grew 106% in Q1 from the same quarter a year ago.
“We are pleased to be adding HORIZANT and the XenoPort pipeline to the growing portfolio of Arbor products,” said XenoPort, Inc. (NASDAQ:XNPT) CEO Ed Schutter. ““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 post herpetic neuralgia.”
Legal company Rigrodsky & Long, P.A. is also investigating potential legal claims against the board of directors of XenoPort, Inc. (NASDAQ:XNPT) on possible breaches of fiduciary duties and other violations of law related to the the company’s entry into an agreement to be acquired by Arbor Pharmaceuticals. This investigation focuses on whether the board of directors failed to properly price the company at $7.03 per share when analysts have issued much higher price targets.
XenoPort, Inc. (NASDAQ:XNPT) is a biopharmaceutical company focused on commercializing HORIZANT Extended-Release Tablets in the US. The company is also working on the development and commercialization of product candidates for the treatment of neurological and other disorders.
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