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.

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 $4.40 yesterday.

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