) reported fourth quarter 2013 financial results but the earnings
report was overshadowed by disappointing results from a couple of
phase II studies (erosive osteoarthritis of the hand − EOA) on
XOMA said that it will not move gevokizumab into late-stage
development for the EOA indication. Shares were down in
As far as fourth quarter 2013 results are concerned, XOMA
reported a loss of 18 cents per share, wider than the year-ago
loss of 15 cents per share. However, the loss was narrower than
the Zacks Consensus Estimate of a loss of 19 cents per share.
Fourth quarter revenues were $12.5 million, up 69.6% from the
year-ago quarter. Revenues surpassed the Zacks Consensus Estimate
of $9 million.
XOMA reported a full-year loss of 72 cents per share, narrower
than the year-ago loss of 88 cents per share and the Zacks
Consensus Estimate of a loss of $1.04 per share. Revenues
increased 4.9% to $35.5 million in 2013, surpassing the Zacks
Consensus Estimate of $31 million.
In the fourth quarter of 2013, R&D expenses increased
45.6% year over year to $22.9 million. This increase was driven
by higher external costs related to the development of
SG&A expenses increased 27.9% year over year to $5.0
XOMA will focus on the phase III study on gevokizumab for
inflammatory pyoderma gangrenosum (PG), which is expected to
commence in 2014. An end of phase II meeting will be conducted
with the U.S. Food and Drug Administration (FDA) this month to
fix the phase III study protocol.
XOMA and its partner Servier are also enrolling patients for
the phase III EYEGUARD program on gevokizumab. EYEGUARD-A is
being conducted to evaluate gevokizumab for the treatment of
non-infectious uveitis (NIU), EYEGUARD-B is evaluating
gevokizumab's ability to prevent disease flares in patients with
Behçet's uveitis and EYEGUARD-C is being conducted to evaluate
gevokizumab for the prevention of disease flares in NIU patients
who are controlled with steroids and immunosuppressants.
XOMA expects cash usage for operating activities in the range
of $55.0 million − $60.0 million in 2014. A major part will be to
support the development of gevokizumab.
XOMA currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the biotech sector include
Alexion Pharmaceuticals, Inc.
Biogen Idec Inc.
Gilead Sciences Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
ALEXION PHARMA (ALXN): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
GILEAD SCIENCES (GILD): Free Stock Analysis
XOMA CORP (XOMA): Free Stock Analysis Report
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