Wedbush Reiterates Upbeat View of XOMA Corp Following Phase 3 EYEGUARD-B Trial Update
In a research report published Thursday, Wedbush analyst Liana Moussatos reiterated an Outperform rating on XOMA Corp (NASDAQ:XOMA) with a $17 price target, after the company announced that the final ocular exacerbation event has occurred in the Phase 3 EYEGUARD-B trial testing gevokizumab treatment of Behçet’s uveitis.
Moussatos observed, “Xoma previously guided towards the release of topline results 6-8 weeks after the last exacerbation event and based on today’s announcement, we calculate this should occur between July 9th and July 23rd. Recall that the primary endpoint is a comparison of the time to first acute ocular exacerbation between patients receiving a 60mg dose of gevokizumab or placebo administered subcutaneously once monthly on top of the patients’ current treatment. If positive, we anticipate the company is likely to request a pre-BLA meeting with the FDA to determine if the available data is sufficient for BLA submission.”
Bottom line: “We consider this announcement to be the most material catalyst for XOMA in 2015—especially since the stock has not run-up with the group. We anticipate positive results mostly due to that every patient in both Phase 2 Behçet’s uveitis trials responded to a single dose of gevokizumab.”
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 38.0% and a 53.4% success rate. Moussatos has a -22.7% average return when recommending XOMA, and is ranked #25 out of 3610 analysts.