* Says GSK failed to maximise horizant sales
* Says it can call off deal if GSK continues to default
Jan 25 XenoPort Inc said its
partner GlaxoSmithKline Plc has breached a contractual
obligation to maximise the sales of their drug to treat restless
legs syndrome (RLS) and achieve a sales milestone.
Last year, the U.S. Food and Drug Administration approved
Horizant, which was co-developed by XenoPort and GSK, to treat
RLS -- a neurological disorder characterized by an urge to move
the legs, usually caused or accompanied by uncomfortable
sensations in the legs.
Under the agreement, GSK has commercial rights to the drug
in the United States with XenoPort getting a profit share of
20-50 percent for the first two years.
XenoPort was eligible to receive $312.5 million in milestone
payments. It is yet to receive up to $290.0 million upon the
achievement of specified sales levels.
On Wednesday XenoPort sent a notice alleging GSK materially
breached its contractual obligation, it said in a regulatory
XenoPort said it can terminate the agreement if GSK
continues to default its contractual obligation for 90 days
after the receipt of the written notice of the breach, which
will expire on April 24.
Shares of XenoPort closed at $4.35 on Tuesday on the Nasdaq.