In a research report published Tuesday, Wedbush analyst Liana Moussatos reiterated an Outperform rating on XOMA Corp (NASDAQ:XOMA) with a price target of $17, after the company received FDA orphan drug designation for Xoma 358, its insulin receptor modulating monoclonal antibody, for the treatment of congenital hyperinsulinism (CHI).
Moussatos observed, “Orphan drug status offers several incentives such as 7-year marketing exclusivity in the U.S., written guidance on necessary studies, and tax credits on certain clinical research. Patients with congenital hyperinsulinism secrete excess insulin, which can cause low glucose levels that can result in neurologic sequelae, including mental retardation, cognitive deficit, epilepsy or death. Recall in Xoma’s Phase 1 study in healthy volunteers, XOMA 358 was found to be effective in reducing insulin receptor signaling and increasing postprandial glucose levels in a dose dependent manner.”
“We believe these results suggest XOMA 358 is likely to be effective in treating patients with hyperinsulinism. Xoma has stated that congenital hyperinsulinism is one of the indications it is considering for a Phase 2 study, slated to start before the end of this year. With an estimated U.S. CHI patient population of ~1250 and a cost of $120K, we project peak sales in the U.S. could reach ~ $75MM.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 34.1% and a 52.9% success rate. Moussatos has a -13.9% average return when recommending XOMA, and is ranked #32 out of 3629 analysts.
Out of the 6 analysts polled by TipRanks, 4 rate Xoma stock a Buy, while 2 rate the stock a Hold. With a return potential of 177.6%, the stock’s consensus target price stands at $10.17.