XOMA Corp (NASDAQ: XOMA)
XOMA Corp has had an incredible run in the market over the past couple of weeks, and for good reason. The company recently announced the initiation of a Phase 2 study that’s likely to lead to overwhelmingly positive results. This has both investors and analysts excited with regard to what they can expect to see from the stock moving forward. Recently, XOMA also hired a new COO. Today, we’ll talk about the news, what we’ve seen in the market, and what we can expect to see from XOMA moving forward.
XOMA Phase 2 Study Initiated!
XOMA is working on an experimental medication that’s known as XOMA 358. The experimental treatment is designed to prevent hypoglycemia in patients with congenital hyperinsulinism or HI. In Phase 1, the treatment performed incredibly well. As a result, the company is now working on the Phase 2 study of the treatment, a study which was recently initiated. The goal of the study is to evaluate the safety and efficacy of a single dose of XOMA 358. In a statement, Paul Rubin, M.D. CEO of XOMA 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.”
When the news above first broke, we saw an incredible rise in the value of XOMA as investors and analysts alike proved to be excited about the news.
XOMA Appoints New COO
Also making recent headlines, XOMA’s Board of Directors appointed the company’s Vice President of Business Development, Jim Neal to serve as the Senior Vice President and Chief Operating Officer. The announcement of the news was made on October 29th and Neal effectively took the position as of November 1st. Jim Neal’s new salary is now $400,000 in addition to incentive cash compensation with a maximum of 40% of Neal’s salary.
How The Market Is Reacting To The News
Since the announcement of the Phase 2 initiation, XOMA has been doing incredibly well in the market. We have seen a massive increase in the value of the stock. Just since Friday, October 30th, the stock has climbed from $1.22 per share to $1.78 per share and seems to be continuing on the upward trend.
What We Can Expect To See From XOMA Moving Forward
All in all, XOMA is making great moves at the moment. Investors are heavily focused on the Phase 2 study of XOMA 358. In Phase 1, the treatment resulted in a dose-dependent increase in post-meal glucose, decrease in insulin signaling, and prevention of hypoglycemia after intravenous insulin administration. Based on the solid Phase 1 results, there’s no reason to expect negativity from Phase 2. With that said, I’m expecting to see a continuation of gains on the stock.
What Do You Think?
Where do you think XOMA is headed and why? Let us know your opinion in the comments below!