GSK sues XenoPort seeking to quash claim of Horizant breach

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) filed suit in the U.S. District Court for the District of Delaware asking for a declaratory judgment that it has fulfilled its contractual obligations under a deal with XenoPort Inc. (NASDAQ:XNPT) for Horizant gabapentin enacarbil. GSK, which launched the product last year in the U.S. for restless legs syndrome (RLS), claims it exercised "commercially reasonable efforts" to maximize Horizant sales and therefore XenoPort has no basis to terminate the deal. The pharma is asking for a jury trial. XenoPort declined to comment.

In January, XenoPort sent a notice to GSK claiming that the pharma breached its contractual obligation to maximize sales of Horizant. The notice states that XenoPort may terminate the deal and regain rights after April 24, unless GSK has cured the alleged breach (see BioCentury Extra, Jan. 27). ...