Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of XenoPort (UNKNOWN:XNPT.DL), a biopharmaceutical company focused on treating neurological disorders, shed as much as 13% following the release of its fourth-quarter earnings results.

So what: For the quarter, XenoPort reported $0.5 million in total revenue compared to $5.1 million in the year-ago period. However, due to a non-cash gain resulting from resolved litigation with GlaxoSmithKline (NYSE:GSK) -- prior to this quarter, Glaxo and XenoPort had a collaboration agreement for the sale of Horizant extended-release tablets -- XenoPort turned in a $3 million profit, or $0.07 per share.

Now what: I believe a lot of today's pessimism revolves around investor concern over whether XenoPort can effectively commercialize Horizant without a large collaborative partner. Given that sales of the drug totaled just $2.1 million in the fourth quarter, according to Glaxo's recorded figures, I can't exactly say that things look all too promising. Furthermore, XenoPort announced that it plans to use $100 million to $110 million in cash just in 2013, and it only ended the year with $139 million in cash and cash equivalents. I sense a big dilutive offering potentially on the way either next year or in 2014.

Craving more input? Start by adding XenoPort to your free and personalized watchlist so you can keep up on the latest news with the company.