Biotech Values

[DewDiligence]

XNPT +6% on XP23829 deal with RDY for US rights:

http://finance.yahoo.com/news/dr-reddy-laboratories-xenoport-enter-054000826.html

Under the terms of the agreement, Dr. Reddy’s Laboratories will receive exclusive U.S. rights to develop and commercialize XP23829 for all indications. In exchange for these rights, XenoPort will receive a $47.5 million up-front payment and an additional $2.5 million for transfer of certain clinical trial materials to Dr. Reddy’s Laboratories. XenoPort will also be eligible to receive up to $190 million upon the achievement by Dr. Reddy’s Laboratories of certain regulatory milestones, which could be achieved over a period of several years. In addition, XenoPort will be eligible to receive up to $250 million upon the achievement of commercial milestones, and up to mid-teens royalty payments based on potential net sales of XP23829 in the United States.

XNPT’s getting any value for XP23829 is a coup insofar as the program had been left for dead (#msg-117407819).