XenoPort Reports First Quarter Financial Results

  XenoPort Reports First Quarter Financial Results

Business Wire

SANTA CLARA, Calif. -- April 24, 2013

XenoPort, Inc. (Nasdaq: XNPT) announced today its financial results for the
first quarter ended March 31, 2013. Revenues for the quarter were $0.5
million, compared to $10.4 million for the same period in 2012. Net loss for
the first quarter was $23.5 million, compared to a net loss of $9.1 million
for the same period in 2012. At March 31, 2013, XenoPort had cash and cash
equivalents and short-term investments of $115.1 million.

Business Updates Since the Start of the First Quarter

  *Initiated a Phase 1 clinical trial designed to determine the metabolism
    and disposition of radiolabeled XP23829 in healthy subjects.
  *Completed patient dosing in a Phase 3 pivotal trial of arbaclofen
    placarbil (AP) as a potential treatment of spasticity in patients with
    multiple sclerosis (MS). XenoPort anticipates reporting top-line results
    of this trial in the second quarter.
  *Presented five posters at the 65^th Annual Meeting of the American Academy
    of Neurology in San Diego, California, including data from clinical trials
    of AP, a potential treatment for spasticity, XP21279, a potential
    treatment for Parkinson’s disease, and pharmacokinetic and safety data of
    XP23829 in healthy subjects, which may be a potential treatment for
    patients with relapsing-remitting MS and/or psoriasis.
  *Reported that GlaxoSmithKline (GSK), who holds commercialization rights to
    Horizant^® (gabapentin enacarbil) Extended-Release Tablets in the United
    States during a transition period ending on April 30, 2013, has
    experienced manufacturing delays that have resulted in a stockout of
    Horizant. GSK continues to have sole responsibility for the manufacture
    and supply of Horizant during this transition period and is working to
    resolve the manufacturing issues with its contract manufacturer. As a
    result of the manufacturing delays, XenoPort anticipates that the
    implementation of its full commercial promotion of Horizant will be
    delayed until a sufficient supply of Horizant is available. Although the
    timing is not yet certain, XenoPort is hopeful that new inventory of
    Horizant will be available in pharmacies in June.

Ronald W. Barrett, Ph.D., chief executive officer of XenoPort, stated, “In the
first quarter of 2013, we continued to focus on three value drivers for the
company. We have invested in advancing the development of our novel fumaric
acid ester compound, XP23829, including ongoing preclinical and two Phase 1
clinical studies. We expect to have the results from these studies by midyear.
We believe the information from these studies will be valuable as we explore
potential Phase 2/3 development strategies with regulatory authorities later
this year.”

Dr. Barrett continued, “We look forward to reporting the results of the AP
Phase 3 spasticity trial in patients with MS this quarter, with a potential
New Drug Application submission near the end of the year if the data from this
trial is supportive. With respect to Horizant, we believe we have made good
progress in preparing to take over commercialization on May 1, and look
forward to launching our full promotional efforts once sufficient Horizant
inventory is available.”

XenoPort First Quarter 2013 Financial Results

Total revenues for the quarter were $0.5 million, compared to $10.4 million
for the same period in 2012. The decrease in revenues for the first quarter of
2013 was primarily due to the recognition of a $10.0 million milestone payment
from Astellas Pharma Inc. in the first quarter of 2012 in connection with the
approval of Regnite® (gabapentin enacarbil) Extended-Release Tablets in Japan.

Research and development expenses for the first quarter of 2013 were $13.4
million, compared to $12.2 million for the same period in 2012. The increase
in expenses for the first quarter of 2013 was principally due to (i) increased
net costs for XP23829, primarily due to increased clinical activities, and
(ii) increased net costs for AP, primarily due to increased manufacturing
activities, and was partially offset by decreased compensation and benefits
costs.

Selling, general and administrative expenses were $10.7 million for the first
quarter of 2013, compared to $7.4 million for the same period in 2012. The
increase in selling, general and administrative expenses for the first quarter
of 2013 compared to the same period in 2012 was principally due to increased
professional fees, marketing and sales costs and compensation and benefits
costs.

Net loss for the first quarter of 2013 was $23.5 million, compared to a net
loss of $9.1 million for the same period in 2012. Basic and diluted net loss
per share was $0.50 for the first quarter of 2013, compared to $0.26 for the
same period in 2012.

Conference Call

XenoPort will host a conference call at 5:00 p.m. Eastern Time today to
discuss its financial results and provide an update on XenoPort’s business. To
access the conference call via the Internet, go to www.XenoPort.com. To access
the live conference call via phone, dial 1-888-275-3514. International callers
may access the live call by dialing 1-706-679-1417.

The replay of the conference call may be accessed after 8:00 p.m. Eastern Time
today via the Internet, at www.XenoPort.com, or via phone at 1-855-859-2056
for domestic callers or 1-404-537-3406 for international callers. The
reference number to enter the call and the replay of the call is 46125297.

About XenoPort

XenoPort is a biopharmaceutical company focused on developing and
commercializing a portfolio of internally discovered product candidates for
the potential treatment of neurological disorders. Horizant is our first
approved product in the United States. GlaxoSmithKline holds commercialization
rights for Horizant in the United States during a transition period ending on
April 30, 2013, following which XenoPort will be responsible for the further
development, manufacturing and commercialization of Horizant. Regnite is
approved and is being marketed in Japan. Astellas Pharma Inc. holds all
development and commercialization rights for Regnite in Japan and five other
Asian countries. XenoPort holds all other world-wide rights to gabapentin
enacarbil. XenoPort's pipeline of product candidates includes potential
treatments for patients with spasticity, Parkinson's disease,
relapsing-remitting multiple sclerosis and psoriasis. To learn more about
XenoPort, please visit the web site at www.XenoPort.com.

Forward-Looking Statements

This press release contains “forward-looking” statements, including, without
limitation, all statements related to the release of AP clinical data and the
timing and results thereof; the potential submission of an NDA for AP for the
treatment of spasticity, and the timing thereof; the suitability of AP as a
treatment for spasticity; GSK’s activities during the remainder of the
transition period with respect to their sole oversight over all aspects of the
manufacturing relating to Horizant; XenoPort’s future development,
manufacturing and commercialization activities with respect to Horizant
following such transition period, and the timing thereof; expected timing for,
and the future sufficiency of, Horizant drug supply; XenoPort’s anticipated
timing for the full commercialization of Horizant and its ability to take over
commercialization on May 1, 2013; the clinical development program for
XP23829, including potential indications and strategies for development, the
release of clinical data and the timing thereof; future discussions with
regulatory authorities, and the timing thereof; the potential suitability of
XP23829 as a treatment for relapsing-remitting MS and/or psoriasis; the
potential suitability of XP21279 as a treatment for Parkinson’s disease; and
the therapeutic and commercial potential of XenoPort’s product candidates. Any
statements contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements. Words such as
“anticipates,” “believe,” “expect,” “hopeful,” “potential,” “will” and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements are based upon XenoPort's current expectations.
Forward-looking statements involve risks and uncertainties. XenoPort's actual
results and the timing of events could differ materially from those
anticipated in such forward-looking statements as a result of these risks and
uncertainties, which include, without limitation, XenoPort’s dependence on GSK
to manufacture Horizant; XenoPort’s lack of commercialization experience and
its ability to establish, or contract with third parties to establish, sales,
marketing, distribution, manufacturing, supply chain and other sufficient
capabilities to assume responsibility for, and to market and sell, Horizant
following the transition period; XenoPort’s ability to successfully market and
sell Horizant following the transition period, including its ability to obtain
uninterrupted drug supply and appropriate pricing and reimbursement for
Horizant in an increasingly challenging environment; XenoPort’s ability to
comply with applicable regulatory guidelines and requirements with respect to
the marketing and manufacturing of Horizant or with Horizant post-marketing
commitments or requirements mandated by the U.S. Food and Drug Administration
(FDA); XenoPort’s need for additional funding and the risk that XenoPort could
utilize its available capital resources sooner than it expects; the
uncertainty of the FDA approval process and other regulatory requirements; the
uncertain results and timing of clinical trials and other studies; XenoPort’s
ability to successfully conduct clinical trials in the anticipated timeframes,
or at all; and the uncertain therapeutic and commercial value of XenoPort’s
product candidates. These and other risk factors are discussed under the
heading "Risk Factors" in XenoPort's Securities and Exchange
Commissionfilings and reports, including in its Annual Report on Form 10-K
for the year ended December 31, 2012, filed with the Securities and Exchange
Commission on March 14, 2013, and its future filings and reports, including
its Quarterly Report on Form 10-Q for the quarter endedMarch 31, 2013.
XenoPort expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in the company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based.

XENOPORT, Horizant and Regnite are registered trademarks of XenoPort, Inc.

XNPT2F


XENOPORT, INC.

BALANCE SHEETS

(Unaudited, in thousands)

                                            March 31,      December 31,
                                             2013             2012
                                                              
Current assets:
Cash and cash equivalents                    $ 21,011         $ 36,134
Short-term investments                         94,115           102,868
Right to the Horizant business                 13,557           13,557
Prepaids and other current assets             5,113          2,529    
Total current assets                           133,796          155,088
Property and equipment, net                    1,383            1,528
Restricted investments and other assets       2,349          2,432    
Total assets                                 $ 137,528       $ 159,048  
Liabilities:
Current liabilities                          $ 14,429         $ 13,771
Noncurrent liabilities                        14,688         15,067   
Total liabilities                             29,117         28,838   
Stockholders’ equity (deficit):
Common stock                                   47               47
Additional paid-in capital and other           583,512          581,763
Accumulated deficit                           (475,148 )      (451,600 )
Total stockholders’ equity                    108,411        130,210  
Total liabilities and stockholders’ equity   $ 137,528       $ 159,048  


XENOPORT, INC.

STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)
                                                                
                                                    Three Months
                                                    Ended March 31,
                                                    2013            2012
Revenues:
Collaboration revenue                               $ 379           $ 10,379
Royalty revenue                                     $ 80           $ —      
Total revenues                                       459           10,379 
Operating expenses:
Research and development*                             13,353          12,178
Selling, general and administrative*                 10,735        7,400  
Total operating expenses                             24,088        19,578 
Loss from operations                                  (23,629 )       (9,199 )
Interest income                                      81            55     
Net loss                                            $ (23,548 )     $ (9,144 )
Basic and diluted net loss per share                $ (0.50   )     $ (0.26  )
Shares used to compute basic and diluted net loss    47,249        35,629 
per share
                                                                    
* Includes employee non-cash stock-based compensation as follows:
Research and development                            $ 1,196         $ 1,115
Selling, general and administrative                  2,148         2,246  
Total                                               $ 3,344        $ 3,361  

Contact:

XenoPort, Inc.
Jackie Cossmon, 408-616-7220
ir@XenoPort.com