UPDATE: Piper Jaffray Initiates XOMA on 'Xciting Antibody Play'

In a report published on Monday, Piper Jaffray analyst Edward A. Tenthoff initiated coverage on

with an Overweight rating and a $8 price target. In the report, Piper Jaffray stated, "Over the last three decades, XOMA has built expertise in the discovery and development of monoclonal antibodies as human therapeutics. The company now is focused on creating a pipeline of antibody drugs in order to retain greater value for shareholders. We look forward to Phase II data on lead drug gevokizumab in Errosive Osteoarthitis (EOA) of the Hand in October and Phase III read-outs from the EYEGUARD studies in Non- Infectious Uveitis (NIU) next year. XOMA and partner Servier are conducting proof- of-concept studies in a variety of other indications. XOMA also has three promising allosteric antibodies to the insulin receptor. We look for clinical data on gevokizumab and new partnerships to drive value. XOMA shares traded down 25% last week due to delays in EYEGUARD enrollment; we believe this offers an attractive entry point." XOMA closed on Monday at $3.87.