XOMA... Xoma Inc.

[Aufan 1983]

BOSTON (MarketWatch) -- Xoma Inc. (XOMA:xoma ltd ord
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Last: 2.28-0.02-0.87%

8:42am 08/28/2007

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XOMA2.28, -0.02, -0.9%) said early Tuesday that it has licensed its bacterial cell expression technology to Pfizer Inc. (PFE:Pfizer Inc
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Last: 24.76+0.02+0.08%

8:31am 08/28/2007

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PFE24.76, +0.02, +0.1%) for use in developing antibody-based treatments. Under the deal, Xoma will received $30 million upfront and royalties on sales of any future products that utilize the technology, including those currently in late-stage development

[BadThad]

Need more DD, don't be so lazy, LMAO

XOMA on google Finanace

Chart

[Aufan 1983]

Originally Posted by BadThad

Need more DD, don't be so lazy, LMAO

XOMA on google Finanace

Chart

:D I just tried to throw it on here as fast as I could because it was running like a rabbit on speed.

I never bought in because by the time I posted this it had cooled down.

[Aufan 1983]

Xoma Limited (nasdaq: XOMA - news - people )saw its stock price shoot higher Tuesday on news of a licensing deal with pharmaceutical giant Pfizer (nyse: PFE - news - people ).

Small-cap biopharmaceutical firm Xoma has never posted a profit and its stock price has struggled, but strategic partnerships with pharmaceutical and biotech companies like Schering Plough (nyse: SGP - news - people ), Genentech (nyse: DNA - news - people ), Merck (nyse: MRK - news - people ), and now Pfizer, have provided much needed equity.

In a note Tuesday morning, Rodman & Renshaw Analyst Michael King reiterated a “Buy” rating on Xoma, and a target price of $5.00. Shares surged more than 20% early Tuesday and ended the day up $0.40, or 17.54%, to $2.68. With a $355 million market capitalization Xoma is hardly a major pharmaceutical player, but adding to its already strong roster of partners goes a long way toward raising its profile in the market.

Miller Tabak Analyst Les Funtleyder said the deal between Xoma and Pfizer is indicative of a partnership trend that will continue. Funtleyder told Forbes.com, “if the capital markets continue to be unfavorable towards biotech firms, you will continue to see firms like Xoma pursuing licensing deals to boost their stock price.” As it gets more difficult for smaller biotech firms to raise equity in the market, their stocks will go down and they will pursue investment through partnerships in order to boost flagging share prices.

On the other side of the equation, large pharmaceutical companies like Pfizer are looking to bolster internal pipelines, finding it less expensive to acquire rights to technology than to develop it in-house, Funtleyder said.

The deal with Pfizer calls for Xoma to receive $30 million up front in exchange for non-exclusive, worldwide rights to the company’s patented bacterial cell expression (BCE) technology for the development and manufacturing of antibody products.

The $30 million up front payment may be spare change to a pharmaceutical giant like Pfizer, but to a firm like Xoma, which lost $7.5 million on revenue of $14.1 million in the last quarter, it’s akin to scratching off a winning lottery ticket. Milestone payments and future royalties associated with the deal could bring the value of the partnership significantly higher.

In a press release trumpeting the partnership deal with Pfizer, Xoma chief executive Steven Engle said “We are very pleased that Pfizer has chosen to incorporate our BCE technology into their global drug development effort, and we look forward to what we anticipate will be a mutually beneficial relationship.”

[thegreatgate]

I'd say we may have a winner:

May 14, 2009 Close: 85 cents (+34.92%)
After hours close: $1.21 (+42% jump from closing pps)
After hours high: $1.57 (+84.7% jump from closing pps)

Average volume: 1.3 million
Today's volume: 11.95 million (highest in 2 years)
After hours volume: 5,775,559 (after hours volume is highest regular day volume since October 2007!)

Short Interest:
Short Interest (Shares Short) 4,320,900
Days To Cover (Short Interest Ratio) 2.7
Short Percent of Float 3.30 %
Short Interest - Prior 4,372,200
Short % Increase / Decrease -1.17 %
Short Squeeze Ranking™ -6

XOMA Ltd. Royalties On CIMZIA Expected To Increase Due To FDA Approval For Moderate To Severe Rheumatoid Arthritis In Adults:
XOMA Ltd. announced that its bacterial cell expression (BCE) technology licensee UCB S.A. has received FDA approval to market CIMZIA (certolizumab pegol), an anti tumor necrosis factor product, for the treatment of moderate to severe rheumatoid arthritis (RA) in adults. XOMA will receive royalty payments on sales of CIMZIA for this indication and will continue to receive royalties on sales of CIMZIA for the treatment of moderate to severe Crohn's disease, for which it was approved in April 2008.

Chart:

[fz4fun]

Nice info Greatgate and many thanks to Aufan for the find tonight after hours on this one. If he wouldn't have caught this-we would have missed the entry point tonight.
Lets all do a banana dance tomorrow when this one takes off.

[thegreatgate]

I sold at a loss at $1.....

[fz4fun]

This is probably as good an explanation as any what happened to us this week in this stock:

May 15, 2009, 9:46 a.m. EST
XOMA’s Hijack Financing On News (XOMA)
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XOMA Ltd. (NASDAQ: XOMA) has seen shares on a roar yesterday and then again this morning. It was late yesterday that the company said it would also be entitled to royalties from its partner's approval for CIMZIA after an approval indication for rheumatoid arthritis. And it was just this morning that the company announced a collaboration with Zymeworks for an antibody research program. Now the company announced that it is raising about $10 million, via a share sale. The company has entered into a definitive agreement with an institutional investor to sell 11,764,706 units. Each unit will consist of 1 share of common stock and 1 warrant to purchase a half-share (0.5 shares, or 5,882,353 common shares in total). The gross proceeds will generate roughly $10 million before placement fees. This was also listed as a 'registered direct' offering.

Xoma noted that the investor has agreed to purchase the units at a purchase price of $0.85 per unit. The warrants will be exercisable at any time on or after May 15, 2009 and prior to the fifth anniversary of the closing of the transaction at an exercise price of $1.02 per share. That is listed as 120% of the closing price yesterday. Canaccord Adams Inc. acted as placement agent for the offering.

The good news is that the company was able to raise cash. The bad news is that did it within about 16 hours of two press releases that lured investors in. There is always a risk that any financing in any small cap biotechs and molecule companies that this can occur. It depends on which side of the fence you are on when determining if you support it or not, but this looks like a hijack financing where you get sucked in only for the benefit of others.

Despite the term "hijack financing," not all of these end up being bad nor do they necessarily bring on adverse moves. We have now seen 11.7 million shares trade hands between the first ten minutes and the pre-market session. Shares are up 17% at $1.00, but shares were up much more than this before the news came out.

Jon C. Ogg May 15, 2009

This blog is reprinted by permission from 24/7 Wall St, © 2007 24/7 Wall St., LLC All rights reserved.

The question is whether the stock goes higher from here or if they used the news only to raise capital for business purposes. Either way, we got blindsided on the positive news with some dilution here. Now if it rallies higher-then not all is bad and it was only 11 million shares from a company with outstanding shares of 140 million so that is not a severe dilution and the volume was huge. If it continues, we may still see upside on the stock in near term.
My advice-hold at your own risk-may be flat and may go higher-impossible to tell after Friday.

[Volatile22]

For anyone still holding this check out the chart for XOMA today. Its chart is looking decent to me. Time to start climbing back up?!

-RSI is level
-MACD line has crossed the signal line
-Hammer has formed today, signal for the beginning of a bullish move?!

[Volatile22]

Originally Posted by Volatile22

For anyone still holding this check out the chart for XOMA today. Its chart is looking decent to me. Time to start climbing back up?!

-RSI is level
-MACD line has crossed the signal line
-Hammer has formed today, signal for the beginning of a bullish move?!

XOMA broke out today!!!! Current PPS 1.09!

Compare the chart from when I picked XOMA to todays. Woot!!!