It goes without saying that Xoma said the results failed to achieve the trial’s primary endpoint. Xoma did note that patients did show ‘significant declines’ in the C-reactive protein levels, which is used to measure risks for strokes, heart attacks, and other forms of cardiovascular disease. Another issue which was brought up was that the safety profile had no significant changes compared to preliminary trial data.
The company is looking to continue development for a treatment of eye swelling and it appears to be looking for cardiovascular disease treatment trials in 2012. The first may not be much, but the second can be if significantly lowers the C-protein levels. Unfortunately, diabetes is such a large growth opportunity for drug companies that the rest is being swept under the table.
Xoma’s market cap is now only about $77 million and its revenues in each of the last three years (most recent 2010 first) are as follows: $33.641 million, $98.43 million, and $67.987 million. Thomson Reuters had consensus estimates of $54.23 million in 2011 and $50.9 million in 2012 revenues. The company also claimed some $37.3 million in cash and equivalents at the end of 2010.
Xoma shares are down 30% at $3.54 and the 52-week trading range is $2.24 to $12.60. There was already a cloud over Xoma. It is hard to consider thinking about good news when you see a 30% drop in a stock. The primary news is bad, but the whole story has not turned to an outright implosion.
JON C. OGG
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