XOMA Corp (NASDAQ: XOMA)
XOMA is an incredible company that is presenting quite the opportunity at the moment. As time passes, the stock is getting closer and closer to a major catalyst that I believe will send it skyrocketing. It seems as though investors are starting to realize that as well, since short interest surrounding XOMA is currently declining. Today, we’ll talk about what I believe will be a major catalyst for the stock, what we’re seeing with regard to short interest, what we’ve seen from XOMA recently, and what we can expect to see moving forward.
XOMA Will Likely See A Big Catalyst In Early 2016
In the world of biotechnology stocks, there are quite a few events that generally act as catalysts. Clinical trial results, New Drug Application submissions, drug approvals and more all tend to either send a stock skyrocketing or plummeting. Well, one of these events is going to happen with regard to XOMA relatively soon. Earlier in the year, the company produced Phase 2 clinical trial results with regard to XOMA-358, a drug designed to treat patients with hyperinsulinism. The results of the Phase 2 study were overwhelmingly positive. In the study, XOMA-358 proved to be not only safe, but also effective in treating the condition. Now, XOMA is headed for Phase 3, which will likely lead to a New Drug Application in the near future. In a statement, XOMA CEO, Paul Rubin, M.D. 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 that are 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.”
Soon, the results of the Phase 3 study will become available. Based on the overwhelmingly positive data we’ve seen from both the Phase 1 and Phase 2 trials, I’m expecting for Phase 3 to be positive as well, sending XOMA skyrocketing.
Short Interest Is On The Downtrend
Investors seem to be excited with regard to what they can expect to see from XOMA moving forward as well. Short interest, a key investor sentiment indicator, is declining. From November 30th to December 15th, the number of shares that were being sold short fell from 19,837,207 to 18,874,476.
What We Can Expect To See From XOMA Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from XOMA. Ultimately, this opinion revolves around the positive data that we’ve seen from XOMA 358 and the positivity I’m expecting to see from the Phase 3 trial. As the company’s CEO pointed out, there are no quality treatments currently in place for congenital hyperinsulinism. By creating a treatment, XOMA will enter into an untapped market which will likely lead to incredible profits. With that said, I’m excited to see what’s coming up next with regard to XOMA.
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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