Why XOMA Is Ripe For The Picking

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XOMA Corp (NASDAQ: XOMA)

While XOMA Corp hasn’t necessarily been at the top of its game since the early 2000’s, I believe that this is likely to change, and in a big way. In fact, I believe that XOMA is ripe for the picking at the moment. Today, we’ll talk about why I believe that XOMA is headed for gains in the near future.

Impressive Results On XOMA 358 Spell Gains To Come

When XOMA 358 trials first started, I was hopeful, but not sold. However, as we move further and further through the clinical trials on the drug, it is becoming more and more exciting to watch. XOMA 358 is a fully human allosteric monoclonal antibody that was designed to reduce insulin receptor activity. It is hoped that the drug will prove to be a solid treatment for hyperinsulinism (HI) which is a genetic disorder that causes beta cells of the pancreas to secrete excessive insulin. Ultimately, this causes hypoglycemia leading to brain damage and in rare cases, death. Through the studies that have been conducted on XOMA 358, we have seen overwhelmingly impressive results.

Not only did the Phase 1 study prove that the drug had high tolerability, the Phase 2 study showed that XOMA 358 was effective and safe! Now, we’re in the midst of the Phase 3 study, which ties everything together with a pretty little bow for the New Drug Application with the United States Food and Drug Administration. In a statement with regard to the initiation of the Phase 3 study into XOMA 358, Paul Rubin, M.D., the company’s CEO had the following to say…

New treatments that safely and effectively attenuate insulin-induced hypoglycemia are needed for patients with congenital hyperinsulinism, as well as other diseases that cause hypoglycemia due to high insulin levels. There are no approved medications, and those currently used have inconsistent efficacy and issues with tolerability. Currently disease management options are limited to continuous ingestion or infusion of glucose or surgical removal of part or all of the pancreas… We are developing XOMA 358 as a first-in-class therapeutic for patients with this potentially fatal disease, and we are pleased to be conducting this study at a world-class medical center recognized for its leadership in treating HI patients.”

So far, everything we’ve heard about XOMA 358 suggests that the drug is likely to be approved by the FDA. With that said, when the Phase 3 trial comes to an end and results are released, I’m expecting the stock to skyrocket. Following this, submission to and approval by the FDA are also likely to lead to massive growth on the stock. With that said, I think we’ve hit a bottom point with regard to the downward movement, making now a great time to get in on this stock.

XOMA Analysis

Out of 5 analysts covering Xoma Limited (NASDAQ:XOMA), 1 rate it “Buy”, 0 “Sell”, while 4 “Hold”. $6 is the highest target while $1.50 is the lowest. The $3.75 average target is 175.74% above today’s ($1.36) stock price. Xoma Limited was the topic in 8 analyst reports since July 23, 2015 according to StockzIntelligence Inc. Zacks downgraded the stock on September 4 to “Hold” rating. Ladenburg Thalmann downgraded the shares of XOMA in a report on July 22 to “Neutral” rating.

The institutional sentiment increased to 1.53 in Q2 2015. Its up 0.33, from 1.2 in 2015Q1. The ratio increased, as 12 funds sold all XOMA Corp shares owned while 28 reduced positions. 24 funds bought stakes while 37 increased positions. They now own 77.58 million shares or 0.90% more from 76.88 million shares in 2015Q1.

Signpost Capital Advisors Lp holds 1.12% of its portfolio in XOMA Corp for 1.01 million shares. Opaleye Management Inc. owns 650,000 shares or 1% of their US portfolio. Moreover, Baker Bros. Advisors Lp has 0.5% invested in the company for 14.68 million shares. The New York-based Kingdon Capital Management L.L.C. has invested 0.5% in the stock. Broadfin Capital Llc, a New York-based fund reported 1.50 million shares.

Since March 17, 2015, the stock had 0 buys, and 4 insider sales for $256,228 net activity. Rubin Paul D sold 5,000 shares worth $22,992. Varian John sold 10,000 shares worth $44,869.

XOMA Corporation is engaged in the discovery and development of antibody therapeutics. The company has a market cap of $161.59 million. The Company’s lead product candidate, gevokizumab, is a potent, humanized allosteric-modulating monoclonal antibody that binds to the inflammatory cytokine interleukin-1 beta . It currently has negative earnings. The Firm has initiated three pivotal clinical trials evaluating gevokizumab for the treatment of non-infectious intermediate, posterior or pan-uveitis (NIU) and Behcet’s disease uveitis.

What Do You Think?

Where do you think XOMA is headed moving forward? Let us know your opinion in the comments below!

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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