Why Did Wedbush Downgrade Xoma?

  • Wedbush has cut XOMA Corporation XOMA to neutral from outperform and lowered its price target to $22 from $41.
  • Analyst Liana Moussatos notes that Novartis AG NVS abandoned iscalimab as a kidney transplant candidate following disappointing phase 2b results.
  • Related Content: Novartis Stops Iscalimab Trial In Kidney Transplant Patients.
  • Novartis continues to assess iscalimab in liver transplantation in the Phase 2b CONTRAIL I study, and in Phase 2a study for Hidradenitis suppurativa with topline results expected in 2023, Moussatos adds. 
  • Based on recent guidance, the analyst now anticipates topline results from the Phase 2b TWINSS study assessing iscalimab in Sjogren's syndrome in 2022 from 2H of 2021.
  • Price Action: XOMA shares are down 10.7% at $25.79 during the market session on the last check Tuesday.
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