Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Xenoport Looks To '829 To Restore Its Lost Glory

Five years ago, XenoPort (NASDAQ:XNPT) was a $40 stock, but while the biotech sector has enjoyed a strong run these shares have gone the other way on disappointments over the restless leg drug Horizant and the clinical failures of arbaclofen placarbil. Although I don't see a credible path back to $40 anytime soon, the company's monomethyl fumarate (MMF) prodrug XPS23829 ('829) does give the company at least a fighting chance of grabbing some of the billions of dollars in revenue expected for Biogen Idec's (NASDAQ:BIIB) latest blockbuster Tecfidera. While the prospect of capturing some of Tecfidera's potential sales through competitive pricing or clinical differentiation is intriguing, investors shouldn't kid themselves about the risks and uncertainties...

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