Market Overview

XOMA Challenged With A 'Major Financing Overhang'

XOMA Challenged With A 'Major Financing Overhang'

XOMA Corp (NASDAQ: XOMA) appears to have a “significant financing overhang,” having reported net loss of $12.5 million during Q3:16 and ending the quarter with $20.6 million in cash.

Ladenburg Thalmann’s Matthew L. Kaplan maintains a Neutral rating on the company.

Q3 And Overhang

XOMA shares had appreciated 260.40 percent over the 52 weeks up to November 1, as compared to the 1.05 percent increase in the S&P 500 over the same period.

The company reported loss per share of $(2.08), along with R&D expenses of $8.7 million and lower than estimated SG&A expenses of $4.1 million.

“XOMA has a €12 million loan due to Servier starting in January 2017 and principal payment obligation for the $20 million loan from Hercules starting in July 2016 running through September 2018,” Kaplan pointed out.

The analyst believes the high spending levels and weak balance sheet point to a meaningful financing overhang persisting for the company.

In fact, any significant surprise in the earnings report could have a meaningful impact on the stock price in the period immediately following the initial report.

Phase 2 Study

In the meantime, XOMA has reported data from its Phase 2 Proof of Concept study for ZOMA 358 in Congenital Hyperinsulinism (CHI) or Post-Bariatric Surgery Hyperinsulinism (PBH).

The data shows short duration of activity with varying doses from 1mg/kg to 5mg/kg.

Kaplan noted that “given XOMA 358 showed a ~21-day half-life in Phase 1 work, XOMA was expected to have a period of 10–14 days to evaluate the durability of any response and also potential dose response.”

At last check, XOMA was down 0.89 percent on the day at $6.69.

Latest Ratings for XOMA

Oct 2017H.C. WainwrightAssumesBuy
Sep 2017WedbushUpgradesNeutralOutperform
Jun 2017H.C. WainwrightInitiates Coverage OnBuy

View More Analyst Ratings for XOMA
View the Latest Analyst Ratings


Related Articles (XOMA)

View Comments and Join the Discussion!

Posted-In: Ladenburg Thalmann Matthew L. KaplanAnalyst Color Biotech Reiteration Analyst Ratings General Best of Benzinga

Latest Ratings

DEBMO CapitalMaintains400.0
PRITruist SecuritiesMaintains165.0
SHAKJP MorganMaintains70.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at