Stock Alert for XOMA Ltd. (XOMA) " />

Stock Alert for XOMA Corp. (XOMA)

XOMA Corp. (XOMA) engages in the discovery and development of innovative antibody therapeutics. The Company’s lead antibody drug candidate is gevokizumab (XOMA 052), a humanized antibody that modulates the inflammatory cytokine interleukin-1 beta, or IL-1 beta. In collaboration with the Company’s partner, Les Laboratoires Servier (Servier), XOMA expects to initiate global Phase III clinical development of gevokizumab to treat non-infectious uveitis, including the subset of patients with Behcet’s uveitis, in 2012. Separately, XOMA has launched a Phase II proof-of-concept program for gevokizumab to evaluate additional indications for further development, including moderate-to-severe inflammatory acne.

Share Statistics (27-Mar-12)   FY

2010

FY

2011

%

Chg

Q4

2010

Q4

2011

%

Chg

Symbol XOMA Revenue, $Mn 33.64 58.20 73.00% 9.60 9.85 2.60%
Current price $2.73 Gross marg. 100.00% 100.00% 100.00% 100.00%
52wk Range: $1.04-$3.49 Oper. margin -58.35% -122.34%
Avg Vol (3m): 703,795 Net margin -204.40% -56.25% -72.48% -185.00% -119.09% -35.63%
Market Cap. 185.76M              
Shares Outstanding 68.04M EPS, $ -3.83 -1.34 -65.01% -0.84 -0.34 -59.52%

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares in XOMA have gained 17.7% in the last five trading days and 76.1% in the last month. Year-to-date, shares have dropped 17.0%.

Shares in the Berkeley, CA-based antibody therapeutics company advanced over 15% to close Tuesday trade at $2.73.  Over 4 million shares exchanged hands during the session, topping the 10-day average of over 904K. The stock has a 52-week range of $1.04 – $3.49.

XOMA earlier this month announced its results for the December quarter and the full year 2011, showing increases in revenues.

XOMA recorded total revenues of $9.8 million for the fourth quarter ended December 31, 2011, compared with total revenues of $9.6 million for the quarter ended December 31, 2010.  For the full year, the company reported total revenues of $58.2 million, up from $33.6 million in 2010, and is primarily attributable to payments made by Les Laboratoires Servier (Servier) throughout 2011 for gevokizumab development.

The Company realized a net loss of $11.7 million, or $0.34 per share, for the quarter, narrowing a net loss of $17.8 million, or $0.84 per share, in the comparable period of the previous year.  For the full year the Company recorded a net loss of $32.7 million, or $1.04 per share, an improvement from a net loss of $68.8 million, or $3.69 per share, for the year ended December 31, 2010.

XOMA’s cash and cash equivalents totaled $48.3 million at December 31, 2011, compared with $37.3 million at December 31, 2010. The Company received from Servier approximately $35 million in cash related to the companies’ Collaboration and License Agreement for gevokizumab, including an upfront payment of $15 million and a EUR15 million loan, in January 2011. In December 2011, XOMA secured a $10 million loan from GE Capital.

Source:

http://investors.xoma.com/releasedetail.cfm?ReleaseID=657321

Financial Strength (27-Mar-2012)

Company

Industry

Sector

Quick Ratio (MRQ) 1.69 1.42
Current Ratio (MRQ) 2.98 2.12 1.76
LT Debt to Equity (MRQ) 223.33 14.91 27.21
Total Debt to Equity (MRQ) 241.96 18.59 36.23
Interest Coverage (TTM) -181.36 2.38 2.39

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

XOMA is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for XOMA currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
Mar27-2012 symbol Share, $ $ Mn 2012 2013 2012 2013
Novartis AG NVS 55.39 133.31B 10.35 10.01 2.29 2.27
Regeneron Pharmaceuticals Inc. REGN 116.19 10.70B n/a 79.04 13.28 9.64
Biotechnology Median       17.83 n/a 8.61 n/a
XOMA Corp. XOMA 2.73 185.76M n/a n/a 3.80 3.85

Source: Thomson Financial

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