UPDATE: Ladenburg Thalmann Lowers XOMA's PT

In a research report published today by Ladenburg Thalmann, XOMA Ltd.

plans to outsource its Phase III/commercial manufacturing to focus on Gevokizumab, the company's highest priority. According to Ladenburg Thalmann, “Gevokizumab expansion into non-infectious uveitis (NIU; of which Behçet's is a subset) remains an orphan drug opportunity. We anticipate the initiation of the NIU trial and the Behçet's trial (which Servier will be running) in 2Q 2012 (data in 2H 2013). Of note, partner Servier funds the first $50 million of the NIU trial with both companies funding the remaining costs 50/50. Additionally, XOMA disclosed the first and second proof-of-concept (POC) studies for gevokizumab would be conducted for moderate to severe inflammatory acne vulgaris which is caused by the presence of propionumbacterium and for erosive osteoarthritis of the hand (

).” Ladenburg Thalmann maintains its Buy rating and lowers XOMA's PT from $9 to $4.50. XOMA is currently trading at $2.34.