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












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:, 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.


Financial Strength (27-Mar-2012)




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:, SEC Filings.

Technical Analysis


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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