NEW YORK (TheStreet) -- Shares of Xenoport (XNPT) are up 19.25% to $4.15 in afternoon trading on Friday after the company announced that its CEO was stepping down as the biopharmaceutical company looks to restructure its business.
The company announced that Ronald Barrett, its CEO since 2001, has stepped down and is to be succeeded by COO Vincent Angotti.
"I am excited by the opportunity to lead the company with our new strategic focus. Since XenoPort's launch of HORIZANT in mid-2013, we have successfully taken a staged approach to its commercialization," Angotti said in a statement. "With the recent expansion of our HORIZANT Neuroscience Health Specialist team to 120 representatives in July, I believe we are well positioned to expand our educational efforts and increase access to HORIZANT and thereby meaningfully benefit many more patients."
The company also said that it will cut 25 jobs which it expects to result in a fourth quarter $2 million charge.
The company reported that its XP23829 psoriasis treatment candidate had strong mid-stage study results in September.
TheStreet Ratings team rates XENOPORT INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
We rate XENOPORT INC (XNPT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself, unimpressive growth in net income and generally high debt management risk.