XenoPort to raise $40m in registered direct financing

Under the terms of purchase agreements, XenoPort is expected to sell 1.89m newly issued shares of its common stock and warrants to purchase 283,420 shares of common stock at a purchase price of $21.17 per unit, with each unit consisting of one share of common stock and one warrant to purchase 0.15 of a share of common stock. The warrants are immediately exercisable at $25.40 per share and will expire five years from the date of issuance.

The financing was led by funds affiliated with Maverick Capital with participation by funds affiliated with Venrock. The net proceeds are expected to be approximately $39.7m after offering expenses. This transaction is expected to close on or prior to January 5, 2009.

XenoPort, is a biopharmaceutical company, engaged in developing a portfolio of internally discovered product candidates that utilize the body’s natural nutrient transport mechanism, which is expected to improve the therapeutic benefits of existing drugs.

Earlier in December, XenoPort has announced results from a Phase 2 clinical trial that examined the ability of XP19986 (arbaclofen placarbil) extended-release tablets to reduce symptoms experienced by subjects with gastroesophageal reflux disease, or GERD.