XOMA Corp (NASDAQ: XOMA)
XOMA Corp has been climbing in the market for the past several trading sessions, and for good reason. It all started with an announcement with regard to a Phase 2 trial. From there, investor excitement ensued, followed by analyst upgrades and positive opinions. Today, we’ll talk about the Phase 2 trial, how analysts view the stock and what we can expect to see moving forward.
The Start Of The Trend: XOMA’s Phase 2 Trial Initiation
As mentioned above, XOMA started to rally as the result of the initiation of a Phase 2 study. The study is a proof of concept study that has an ultimate goal of evaluating the safety and efficacy of a single dose of XOMA 358. XOMA 358 was designed as a way to prevent hypoglycemia in patients with congenital hyperinsulinism, a condition known as HI. At the moment, XOMA believes that XOMA 358 has the ability to reduce insulin receptor activity. During the announcement of the initiation of the Phase 2 study, Paul Rubin, M.D. CEO of XOMA offered the following statement…
“New treatments that safely and effectively attenuate insulin-induced hypoglycemia are needed for patients with congenital hyperinsulinism, as well as other diseases that cause hypoglycemia due to high insulin levels. There are no approved medications, and those currently used have inconsistent efficacy and issues with tolerability. Currently disease management options are limited to continuous ingestion or infusion of glucose or surgical removal of part or all of the pancreas… We are developing XOMA 358 as a first-in-class therapeutic for patients with this potentially fatal disease, and we are pleased to be conducting this study at a world-class medical center recognized for its leadership in treatming HI patients.”
It is also worthwhile to mention that the Phase 1 study of XOMA 358 went off without a hitch. Ultimately, the study produced positive results, leading to further studies with regard to the treatment. In fact, the positive results of the Phase 1 study had quite a bit to do with how the stock is reacting and the positive analyst opinions we’ve seen on XOMA since the Phase 2 study was innitiated.
Phase 2 Leads To Analyst Upgrades
As mentioned above, the positive results from the Phase 1 clinical trial of XOMA 358 led to further excitement about Phase 2. As a result of these results, Wedbush recently weighed in on the stock. The analyst at Wedbush that weighed in on the stock is named Liana Moussatos, and she had incredibly positive views to offer. According to the recent report listed by Moussatos, Webush maintains an outperform rating with an upside of more than 400%. Moussatos set a target price on XOMA at $6 per share. Here’s what the analyst had to say about XOMA and the recent Phase 2 study initiation…
“Based on results from the Phase 1 study in which treatment with XOMA 358 resulted in a dose-dependent increase in post-meal glucose, decrease in insulin signaling, and prevention of hypoglycemia after intravenous insulin administration, we believe the [Phase 2] study could readout positive results…”
What We’ve Seen From XOMA Since The Study Initiation
Since the initiation of the Phase 2 study of XOMA 358, we’ve seen incredibly positive news out of XOMA. In the past 5 trading sessions, the stock has grown exponentially; climbing from $1.09 per share to $1.58 per share.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive news out of XOMA. As mentioned above, XOMA’s first study looking into XOMA 358 was incredibly positive. With that said, I’m expecting the second study to end positively as well, acting as the next catalyst. While Wedbush’s analysis of the stock gives it one of the highest price targets, I don’t think that a $6 target on this stock is far fetched. So, if you’re looking for a strong opportunity in biotech, you may want to take a look at XOMA.
What Do You Think?
Where do you think XOMA is headed and why? Let us know in the comments below.
Disclaimer – The author of this article holds no positions in any stock mentioned here nor plans to own any positions in any stock mentioned herein for a minimum of 72 hours.