) recently announced the pricing of its common stock offering.
The company said that it will issue 7.6 million shares for $3.62
per share. Moreover, underwriters have been granted a 30-day
option to purchase up to an additional 1.1 million shares.
XOMA expects to raise net proceeds of about $25.5 million from
the offering, which is slated to close on or about Aug 23. The
funds should come in handy for the company's research and
XOMA exited the second quarter of 2013 with cash and
equivalents of about $57.9 million and expects to use about $50
million in 2013, mainly on its clinical and preclinical
activities. The company expects research and development spend to
increase this year mainly due to the ongoing global phase III
development of lead candidate, gevokizumab, for the
non-infectious uveitis (NIU) indications and XOMA's ongoing phase
II proof-of-concept program.
XOMA's lead pipeline candidate, gevokizumab, is being
developed with Les Laboratoires Servier. Between the two
companies, gevokizumab is currently in more than 12 studies
covering 10 indications including six rare disease
Some of the indications being studied include moderate to
severe inflammatory acne (phase II results reported in Jan 2013),
erosive osteoarthritis (EOA) of the hand with elevated C-reactive
protein (phase II top-line results due in October), pyoderma
gangrenosum (pilot study ongoing), reduction of plaque
inflammation in patients with atherosclerosis (phase II ongoing)
and polymyositis/ dermatomyositis (proof-of-concept study
Meanwhile, gevokizumab is currently in phase III development
for NIU and Behçet's uveitis. XOMA is conducting both the NIU
studies (EYEGUARD-A and EYEGUARD-C) while the Behçet's uveitis
study is being sponsored by Servier.
XOMA currently carries a Zacks Rank #4 (Sell). At present,
Gilead Sciences, Inc.
) look well-positioned with all three being Zacks Rank #1 (Strong
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