XenoPort (XNPT) to be acquired by Arbor Pharmaceuticals

XenoPort (NASDAQ: XNPT). The company revealed Monday that it has agreed to be acquired by privately held Arbor Pharmaceuticals. The price is $7.03 per share, which is to take the form of an all-cash tender offer, and represents a premium of around 60% to the closing stock price on the trading day before the arrangement was announced. All told, the deal is worth roughly $467 million.

XenoPort's star drug is Horizant, a treatment for moderate to severe primary restless leg syndrome. In the first quarter, it was been responsible for nearly all of the company's revenue, which totaled just over $14 million. XenoPort has generally been unprofitable; its Q1 net loss was over $14.5 million.

In the press release heralding the acquisition, Arbor CEO Ed Schutter was quoted as saying the drug still has significant potential. "The XenoPort sales team has done an excellent job of growing Horizant," he said, "and we look forward to supporting them to continue this significant momentum."