RBC Capital Calls XOMA's (XOMA) '358 'Sleeper Candidate'

RBC Capital maintained an Outperform rating on XOMA, Ltd. (NASDAQ: XOMA) wth a price target of $9. XOMA Corporation (Nasdaq: XOMA) this weekend announced the presentation of data from XOMA 358 at the Endocrine Society's Annual Meeting.

Commenting, on developments, analyst Adnan Butt called XOMA 358 a "sleeper candidate" that adds another rare indication to XOMA’s pipeline.

"Phase I data presented this weekend show the drug blunts the impact of insulin. Phase III studies in Behcet’s and uveitis remain near-term drivers, pyoderma gangrenosum a mid-term driver, all for gevokizumab, and ‘358 is a new candidate that XOMA could develop itself or partner," said Butt.

"Results from the Phase I study showed down regulation of the insulin receptor, which overall resulted in higher blood sugar levels. Specifically, intravenous administration of XOMA 358 resulted in dose-related increases in postprandial glucose through day 6 with the day 3 glucose AUC ~80% greater than placebo with the 1 mg/ kg/ dose. Insulin administration resulted in a significant drop in blood sugar before XOMA 358 was given but after administration the impact of insulin was reduced at days 2, 3 and 5. Patients who received 3 mg/ kg as a single administration received insulin before and at 2, 3 and 5 days after dosing. XOMA 358 was also well tolerated and there were no serious adverse events," he added.

For an analyst ratings summary and ratings history on XOMA, Ltd. click here. For more ratings news on XOMA, Ltd. click here.

Shares of XOMA, Ltd. closed at $3.57 yesterday.

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