XOMA Corp (XOMA) Stock: Can Gains Continue?

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XOMA Corp (NASDAQ: XOMA)

XOMA Corp has been experiencing nice gains over the past several trading sessions, and for good reason. The bullish activity was prompted by a company announcement that a Phase 2 study had been initiated. Since then, investor excitement has helped XOMA to continue to climb. Now, investors are asking a big question. How long can this stock continue on a bullish trend? In my opinion, we’ve only seen the beginning. Today, we’ll talk about why.

XOMA 358 Phase 2 Study Is Likely To Yield Positive Results

As mentioned above, the bullish momentum we’ve seen on the stock was started by the announcement of a Phase 2 trial initiation. The study revolves around XOMA 358, an experimental drug that was created to prevent hypoglycemia in patients with congenital hyperinsulinism, also known as HI. The reason the study initiation started such bullish activity is simple; the Phase 1 study of the drug showed incredibly positive results. Ultimately, the end result was a decrease in insulin signaling and prevention of hypoglycemia after intravenous insulin administration with a single dose! Considering the overwhelmingly positive results of the Phase 1 study of XOMA 358, it makes sense that investors are excited to see what Phase 2 will bring. In a statement, Paul Rubin, M.D., CEO of XOMA had the following to offer upon the announcement of the Phase 2 initiation:

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.”

Catalysts Are On The Way For XOMA Investors

Not only do I believe that the Phase 2 study is going to end positively for XOMA, I also believe that a couple of catalysts are on their way. These will come by way of presentations. In fact, one of those presentations will be coming tomorrow, November 19th at 3:20 when XOMA presents at the Jefferies Autumn 2015 Global Healthcare Conference in London. The second will be coming on December 1st, when XOMA presents at the 27th Annual Piper Jaffray Healthcare Conference. In these presentations, XOMA is likely to excite investors with information from the XOMA 358 Phase 2 study, letting everyone know how it’s going. I’m also expecting for the company to discuss financial data in these presentations, giving XOMA investors even more reason to be excited.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly positive opinion with regard to what we can expect to see from XOMA. In Phase 1, XOMA 358 proved to be effective. Therefore, I’m expecting more positive news from Phase 2 and eventually FDA approval of the drug. In the mean time, we have plenty of catalysts ahead which will lead to continued investor excitement and continue to drive the stock further up.

What Do You Think?

Where do you think XOMA is headed and why? Let us know your opinion in the comments below.

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