NEW YORK (TheStreet) -- Shares of XenoPort (XNPT) are rising by 3.34% to $4.95 on Friday morning, as the company considers a possible sale of itself.

The Santa Clara, CA-based biopharmaceutical company focuses on treatment of neurological and other disorders, such as restless leg syndrome.

XenoPort is working with an investment bank and reaching out to possible acquirers, but is in the early stages of exploring a sale, according to sources cited by Reuters yesterday.

The potential sale comes as the NASDAQ Biotech Index is lower by more than 30% since its peak last year, Reuters added.

The slump, which was caused partially by worries about increasing pressure on drug prices, has renewed interest from buyers in companies with innovative drugs that can defend a price hike, Reuters noted.

Separately, TheStreet Ratings Team has a sell rating with a score of D- on the stock.

This is driven by multiple weaknesses, which the team believes 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 the team covers.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: XNPT

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