XOMA Posts Narrower Loss - Analyst Blog

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XOMA Corporation ( XOMA ) reported fourth-quarter 2012 loss of 15 cents per share, narrower than the year-ago loss of 36 cents and the Zacks Consensus Estimate of a loss of 24 cents. Lower operating expenses led to the narrower year-over-year loss.

For the full year 2012, XOMA suffered a loss of 88 cents per share as opposed to a loss of $1.16 incurred in 2011. 2012 loss was also narrower than the Zacks Consensus Loss Estimate of a loss of $1.42 per share.

Revenues in 2012 declined 42% to $33.8 million. The top-line figure was nominally below the Zacks Consensus Estimate of $34 million.

Quarterly Results

Revenues at XOMA declined 24.9% to $7.4 million in the fourth quarter of 2012. The decline was primarily due to lower contract revenues during the quarter. Revenues fell short of the Zacks Consensus Estimate of $8 million.

XOMA records revenue from its license and collaboration arrangements, contract services, product sales and royalties.

Revenues from license and collaborative fees came in at $1.1 million, down 16.1%. Contract and other revenues dropped approximately 29% to $6 million. XOMA reported net product sales of $0.25 million in the reported quarter. Revenues from royalties accounted for the balance.

Operating expenses declined 10% to $19.7 million. Both research and development (R&D) expenses (down 24.6%) and selling, general and administrative (SG&A) expenses (down 5.6%) declined in the reported quarter.

Pipeline Update

XOMA is expecting several data readouts on its late stage candidate, gevokizumab. The company is developing the candidate for the treatment of non-infectious intermediate, posterior or pan-uveitis (NIU). Gevokizumab is being studied in three clinical trials, namely, EYEGUARD-A, EYEGUARD-B and EYEGUARD-C.

2013 Projection

XOMA expects cash used in operating activities to be $50 million in 2013 primarily due to costs related to late stage studies of EYEGUARD-A, EYEGUARD-B and EYEGUARD-C.

XOMA, a biotechnology company, currently carries a Zacks Rank #3 (Hold). Other biotech companies like Cytokinetics Inc. ( CYTK ), WuXi PharmaTech ( WX ) and Agenus Inc ( AGEN ) presently look more attractive. Cytokinetics and WuXi Pharma carry a Zacks Rank #1 (Strong Buy), while Agenus carries a Zacks Rank #2 (Buy).

AGENUS INC (AGEN): Free Stock Analysis Report

CYTOKINETCS INC (CYTK): Free Stock Analysis Report

WUXI PHARMATECH (WX): Free Stock Analysis Report

XOMA CORP (XOMA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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