Massive Volume Spike: XenoPort (XNPT, GSK)

Posted in General 
November 10th, 2008

XenoPort, Inc. (NASDAQ: XNPT) is generally a thin volume stock, but that is changing today.  The company is seeing milestone payments from GlaxoSmithKline (NYSE: GSK) delayed because of the  Solzira new drup application withdrawal.

Solzira was a drug to treat restless legs syndrome, and now regulators requested the data in a single study to be reformatted.

XenoPort shares are down 15% at $33.50 after 45 minutes of trading.  We have also seen 640,000 shares of stock trade, well above a full day’s trading volume of 275,000 shares.  Shares traded briefly under $31.00 earlier on, which was under the prior $32.77 to $66.34 trading range over the last 52-weeks.

XenoPort does have stock options, although the current month expiration (NOV-08) does not show any fishy trading nor crazy open interest levels which signal that this was an imminent announcement.  We would note that the DEC-08 call options and put options have a much higher open interest.

Jon C. Ogg
November 10, 2008

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