XenoPort reports positive results from Restless Leg Syndrome trial

XenoPort reports positive results from Restless Leg Syndrome trial

	Published : Wed, 25 Apr 2007 11:10 By : Agencies Print this Story

London (Thomsom Financial News) - US drug maker XenoPort Inc reported positive initial results from a final-stage phase III trial of XP13512 for the treatment of restless legs syndrome (RLS), a compound which it is developing with GlaxoSmithKline PLC.

The drug was found to statistically significantly improve symptoms, compared to placebo.

Restless leg syndrome is a neurological movement disorder that causes uncontrollable urges to move the legs and painful sensations, and can lead to insomnia.

In February, Glaxo, which reports first-quarter results later today, bought worldwide rights to the drug, excluding some Asian countries, in a co-development deal worth a potential 676 mln usd to XenoPort, plus royalties.

As well as the phase III trials in RLS, the compound is in phase II studies in neuropathic pain.

Last week, analysts at Morgan Stanley hiked their risk-adjusted 2013 sales forecasts for XP13512 by 50 pct to 846 mln stg. The bank has penciled in a 2009 launch for the product in RLS.

Glaxo has been building a franchise around the largely untreated illness with its Requip pill, and is expected to launch an extended release version later this year. Sales of Requip, which is also sold as a treatment for the symptoms of Parkinson's disease, posted a 74 pct surge last year, to 268 mln stg.

XP13512's superior potency and improved side effect profile gives Glaxo the opportunity to raise the price of the drug for a growing pool of RLS patients, Morgan Stanley believes.

Glaxo has the right to develop the drug in any indication, and the broker believes that other uses could match the potential of the revenues from RLS.

amy.brown@thomson.com

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