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Apr 13, 2009

XenoPort Opts into Co-Promotion Deal with GSK for RLS Drug

XenoPort Opts into Co-Promotion Deal with GSK for RLS Drug

XenoPort exercised option to co-promote RLS treatment with GSK

  • XenoPort has exercised its option to co-promote Solzira, a restless leg syndrome treatment that is pending NDA approval, with GlaxoSmithKline (GSK). The company has also changed its U.S. detailing plans for Requip XL, a Parkinson's treatment produced by GSK. Xenoport says that it will now detail Requip XL near the Solzira product launch as opposed to beginning these activities upon its exercise of the co-promotion option and ending upon the launch of Solzira.

    Under the revised terms, XenoPort will be entitled to continue these detailing activities until the earlier of the launch of a generic form of Requip XL or July 1, 2011. "We determined that it would be better to postpone the expense of building this sales force until Solzira is approved, while extending the period of time that our sales force would be able to detail a second product in concert with Solzira," says Vincent J. Angotti, XenoPort's svp, chief commercialization officer.

    XenoPort will be compensated for each detail of Requip XL completed by its sales representatives through a fee that is separate from fees under the Solzira joint agreement. GSK originally bougth rights to Solzira in February 2007 when it was in Phase III development. Under the terms of that deal, XenoPort was to receive royalties on U.S. sales but retained the right to choose to co-promote in the U.S. By exercising this option, Xenoport has entered a profit-and-loss sharing arrangement. Prior to the launch of Solzira, cash payments to GSK representing XenoPort’s share of any loss will be deferred and will be repayable over a period of time following the launch.


    Other News on Solzira
    GSK and XenoPort Are Temporarily Withdrawing Their RLS NDA (Nov. 10, 2008)
    XenoPort Shares Spike on Successful Phase III RLS Trial (Ap. 25, 2007)


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