H.C. Wainwright Reiterates Buy Rating on XOMA, Ltd. (XOMA)

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $123.00 price target on XOMA, Ltd. (NASDAQ: XOMA).

The analyst commented: "On January 7, partner Rezolute (RZLT; Buy; Tsao) announced that RZ358 (ersodetug), received Breakthrough Therapy Designation (BTD) for the treatment of congential hyperinsulinism (CHI). The FDA granted BTD based on the Phase 2b RIZE study, and we await Phase 3 topline data from the sunRIZE study in 2H25. Ersodetug also received PRIME Eligibility from the EMA for CHI in October 2023 plus ILAP designation in the U.K. Data from the RIZE Phase 2b study were presented in May 2022 at the Pediatric Endocrine Society Annual Meeting. The data showed a highly significant ~75% reduction in hypoglycemia events at anticipated therapeutic doses including: (1) >50% improvement in hypoglycemia in 100% of patients in the high-dose cohort (no adverse drug events or clinically significant hyperglycemia); (2) the study exceeded expectations for correction of hypoglycemia across several metrics like hypoglycemia and time in hypoglycemia plus a predictable, dose-dependent, clear, dose-response; and (3) no discontinuations or adverse events. The Phase 3 sunRIZE study is a global, multi-center, double-blind, randomized, controlled study targeting 56 CHI patients (aged >3 months without adequate glycemic control with SoC treatments. The primary endpoint of the study is the change of average hypoglycemia events per week over a total of six months. If approved, XOMA is entitled to high-single to mid-teen royalties, which could factor nicely in to a relative near term contribution to the growing royalty revenue of the company. Our projections for RZ358 in CHI are a 2027 launch with peak sales of ~$300 million; the addressable market in the U.S. is ~1,500 patients, which includes both diazoxide-responsive and unresponsive patients. Reiterate Buy rating and $123 PT."

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 $25.67 yesterday.

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