It's NOT 'Game Over' for XOMA (XOMA), Wedbush Says; PT to $13
Wedbush analyst Liana Moussatos cut here price target on XOMA, Ltd. (NASDAQ: XOMA) to $13.00 (from $17.00) after Gevokizumab failed to meet the primary endpoint in its Phase 3 EYEGUARDB trial in patients with Behçet’s disease uveitis (BDU). However, the firm maintained its Outperform rating saying it is NOT game over for the company.
"While we have removed non-infectious uveitis (NIU) from our valuation and revenue projections, we do not believe the game is over for gevokizumab in NIU," Moussatos said. "Management mentioned that the ongoing EYEGUARD-A and –C trials in NIU could complete enrollment in the next few months (we anticipate data releases ~YE:15 for EYEGUARD-C and H1:16 for EYEGUARD-A). We believe these treatment-designed trials (vs prevention designed EYEGUARD-B) may be better designed for success since both Phase 2 trials had treatment designs and every patient responded to a single dose. It is our understanding the both EYEGUARD-A & C would need statistically significant primary endpoints in order for XOMA to file. Therefore, we view NIU as a call option if both -A and -C readout positive data."
The firm said gevokizumab still holds plenty of value.
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Shares of XOMA, Ltd. closed at $4.40 yesterday.