UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on XenoPort Following Disappointing Results

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on XenoPort

, but lowered the price target from $12.00 to $9.00. In the report, Poole noted, “AP Spasticity Program Terminated Following Disappointing Ph 3 Results. XenoPort announced early Monday that arbaclofen placarbil (AP) – the company's pipeline candidate for the treatment of spasticity due to MS – was unsuccessful in demonstrating statistical significance relative to placebo in both co-primary endpoints in a pivotal Ph 3 trial, which was conducted under an agreed upon special protocol assessment (SPA) with the FDA. Based on the disappointing results, management has decided to terminate further development of the AP program and will instead reallocate resources to other pipeline candidates that warrant further investment (i.e., XP'829 – XenoPort's BG-12 like compound).” XenoPort closed on Monday at $5.72.