UPDATE 2-XenoPort's psoriasis drug shows higher side effects; shares fall

Tue Sep 15, 2015 11:55am EDT
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* High rates of adverse events in mid-stage study

* Compares poorly to standard of care - analyst

* Shares touch a year low (Adds analyst comment, updates share)

By Anjali Rao Koppala

Sept 15 (Reuters) - XenoPort Inc's psoriasis drug showed high rates of gastrointestinal-related side effects, overshadowing its success in a mid-stage study.

The company's shares, which rose as much as 19 percent premarket, fell sharply in regular trading after the company said on a conference call that a third of its patients in the study dropped out due to the side effects.

During the trial of the drug, XP23829, in patients suffering from the chronic skin disease, adverse events related to diarrhea were 22-40 percent in the drug group, compared with 15 percent in the placebo group, the company said.

XenoPort should stop spending limited resources on a drug that, while active, appears to be inferior to the standard of care in psoriasis, Cowen & Co analyst Eric Schmidt wrote in a note.

The drug's profile compares poorly to Celegene Corp's Otezla, which was approved last year for psoriasis, and Biogen Inc's multiple sclerosis drug Tecfidera, the analyst said.   Continued...