) shares declined 18.5% after the company reported
wider-than-expected loss per share in the first quarter of 2014 and
slower-than-expected patient enrolment in two phase III studies
being conducted with gevokizumab.
The company posted a loss of 23 cents per share, wider than the
Zacks Consensus Estimate of a loss of 19 cents per share and the
year-ago loss of 15 cents per share.
Total revenues for the reported quarter were $3.4 million, down
63.9% from the year-ago quarter. Revenues were lower than the
year-ago quarter primarily due to a milestone payment from Servier.
Revenues were well below the Zacks Consensus Estimate of $9
The Quarter in Detail
R&D expenses for the quarter increased 29.5% to $21.5
million. The surge was driven by increased costs related to
pipeline development, including gevokizumab and higher stock-based
XOMA is working on commencing a phase III study on gevokizumab
for inflammatory pyoderma gangrenosum (PG). XOMA intends to submit
the phase III study protocols for gevokizumab to the U.S. Food and
Drug Administration (FDA) within the next few weeks. A response
from the FDA should be out by Aug 2014. Gevokizumab received orphan
drug status in the U.S. for the treatment of PG.
Meanwhile, partner Servier is enrolling patients in 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.
Gevokizumab has orphan drug status for NIU and Behçet's uveitis.
However, patient enrolment for EYEGUARD-A and EYEGUARD-C is going
slower than expected.
Selling, general and administrative expenses increased 27.4% to
2014 Guidance Maintained
XOMA continues to expect cash usage for operating activities in
the range of $55.0 million − $60.0 million in 2014. This includes
license and contract-related revenues that the company expects to
receive this year.
XOMA currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the health care sector include
Alexion Pharmaceuticals, Inc.
ANI Pharmaceuticals, Inc.
Gilead Sciences Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ALEXION PHARMA (ALXN): Free Stock Analysis
ANI PHARMACEUT (ANIP): Free Stock Analysis
GILEAD SCIENCES (GILD): Free Stock Analysis
XOMA CORP (XOMA): Free Stock Analysis Report
To read this article on Zacks.com click here.