Xenoport (f/k/a XNPT)

[surf1944]

6:31AM Xenoport and GlaxoSmithKline (GSK) mutually agree to terminate their collaboration on Horizant; Xenoport reacquires rights to Horizant in the U.S. (XNPT) 7.46 : Co announced that it has reached an agreement with Glaxo Group (GSK) to terminate their collaboration agreement concerning Horizant (gabapentin enacarbil) Extended-Release Tablets, for which GSK held commercialization rights and certain development rights in the U.S.. Pursuant to a termination and transition agreement entered into between the parties, GSK is returning Horizant rights to XenoPort and providing certain assistance during a transition period. The termination and transition agreement also provides for a mutual release of claims and resolves all ongoing litigation between the parties. During the transition period that will end on April 30, 2013, GSK will continue to exclusively commercialize, promote, manufacture and distribute Horizant in the U.S.. XenoPort will not be responsible for any losses associated with the terminated collaboration agreement, and XenoPort will not receive any revenue or incur any losses from GSK's sales of Horizant during the transition period. GSK will also continue to fully fund the costs associated with the management and conduct of clinical studies initiated by GSK prior to the date of the termination and transition agreement. In addition, prior to the end of the transition period, GSK will provide to XenoPort inventory of gabapentin enacarbil in GSK's possession that is not required for use by GSK in the manufacture of Horizant. In exchange for such inventory, XenoPort will make annual payments to GSK of $1.0 mln for six years beginning in 2016.