XOMA Rg (NASDAQ: XOMA) is having a rough day in the market today, and for good reason. It was announced this morning that Novo Nordisk has sent the company notice with regard to the termination of a license agreement. As a result, fear hit investors, leading to declines in the stock. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (10:04), XOMA is trading at $6.98 per share after a loss of $0.75 per share or 9.65% thus far today.
NVO Terminates License Agreement With XOMA
As mentioned above, XOMA is having a rough day in the market today after news broke that Novo Nordisk has notified the company that it will be terminating a licence agreement with the company. The license will be terminated for strategic and business reasons according to NVO.
This is a big hit to XOMA as it will no longer be expecting potential milestone payments that are payable under this license agreement. As a result, the company expects for potentail milestone payments over the next 36 months to fall to $40 million from $50 million.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on XOMA. While the cancellation of this license agreement is bad news, it does open the door for the company to seek another partner. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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