XOMA Corporation
's (
XOMA
) fourth-quarter 2011 loss of 34 cents per share was wider than the
Zacks Consensus Estimate of a loss of 25 cents but narrower than
the year-ago loss of 84 cents. Higher revenues and lower operating
expenses led to the narrower year-over-year loss.
Quarterly Results
Revenue at XOMA improved marginally (2%) to $9.8 million in the
fourth quarter of 2011. Revenues, however, were well short of the
Zacks Consensus Estimate of $15 million. Revenue from license and
collaborative fees came in at $1.3 million, against $0.4 million in
the year-ago quarter. Contract and other revenue dipped
approximately 6.5% to $8.6 million. Revenues from royalties
accounted for the balance.
Operating expenses declined 14.8% to $21.9 million. Both
research and development (R&D) expense (down 12.6%) as well as
selling, general and administrative (SG&A) expense (down 21.2%)
were on the downswing in the reported quarter. R&D expenses
declined mainly due to the lower spending on pipeline candidate
gevokizumab (XOMA 52). XOMA is evaluating the candidate for
multiple indications.
Yearly Results
For the full year 2011, XOMA suffered a loss of $1.04 per share
as opposed to a loss of $3.69 suffered in 2010. 2011 loss was wider
than the Zacks Consensus Loss Estimate of $0.94 per share. Higher
revenues and lower operating expenses led to narrower
year-over-year loss.
Even though revenues in 2011 climbed 73% to $58.2 million, they
were well short of the Zacks Consensus Estimate of $64 million.
Revenue from license and collaborative fees came in at $18.0
million, against $2.2 million in 2010. The massive jump was
attributable to the recognition of $16.2 million in 2011 from
partner Servier related to gevokizumab. Contract and other revenue
climbed 47.1% to $ 40.0 million. Revenues from royalties accounted
for the balance.
2012 Projection
XOMA, which boasts of collaborations with big players such as
Novartis
(
NVS
) and Takeda, expects cash used in operating activities to be $35
million in 2012.
Our Recommendation
Currently, we have a Neutral stance on XOMA in the long run. The
company carries a Zacks #3 Rank (Hold rating) in the short run.
NOVARTIS AG-ADR (
NVS
): Free Stock Analysis Report
XOMA CORP (
XOMA
): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research