XOMA Corp (NASDAQ: XOMA)
XOMA Corp is having an incredibly bad day in the market today after announcing data from its Phase 3 EYEGUARD-B study of gevokizumab. The company announced that they have failed to meet yet another primary endpoint in late stage studies of one of their drug candidates. As a result, their stock is dive bombing. Today, we’ll talk about the study, how investors are reacting to the news, and what we can expect to see moving forward. So, let’s get right to it…
XOMA Study Results
As mentioned above, XOMA announced the Phase 3 EYEGUARD-B study results today. However, that study did not meet it’s primary endpoint of time to first acute ocular exacerbation. In a statement following the release of the data, John Varian, CEO of XOMA had the following to say…
“In recent years, our public focus has been on gevokizumab. However, during that time, we have significantly advanced other assets in our pipeline including XOMA 358, for which we completed a positive Phase 1 study showing it is active in down-regulating the insulin receptor and shows potential in treating patients who experience endogenous over-production of insulin, and XOMA 089, our late preclinical anti-TGFβ monoclonal antibody with potential in immuno-oncology and fibrosis… We will focus our efforts on creating value with these pipeline assets and reduce expenses where appropriate. While we continue to evaluate the data from EYEGUARD-B, the EYEGUARD-A and C studies, in the broader range of non-infectious uveitis, are still recruiting.”
How Investors Reacted To The News
Any time there’s bad news produced about a company, we expect to see declines in the value of the company’s stock. However, XOMA declines have gone far beyond general bad press declines. It seems as though investors are getting tired of the company’s ability to consistently miss primary endpoints in late-stage studies. Currently (12:05), XOMA is trading at $1.17 per share after a massive loss of 73.40% so far today.
What We Can Expect From XOMA Moving Forward
Unfortunately, I don’t have a very bullish opinion of what to expect from XOMA Corp stock as we move forward. The reality is that the company is becoming known for missing primary endpoints in late stage testing. That is an absolutely horrible reputation. As a matter of fact, mainstream media is calling this company a “Zombie Stock that needs to be shot in the head” and asking if this is “the end for the company”. In any other industry, no company could last this long without a product and tons of negative news. In my opinion, it’s time for XOMA to go down the drain!
What Do You Think?
Where do you think XOMA is headed and why? Let us know in the comments below!