zacks today..
"...Your report on Xoma came out recently, as well. Is it fair to say you’re even more bullish on this stock?
With Xoma, I met with CFO David Boyle, VP Robert Gundel [Vice President of Scientific Corporate Development] and Paul Goodson, who is in Investor Relations. Xoma is simply an amazing company. Its market cap is so small – the stock currently trades at a mere $1.65 – yet it has so much going on. Xoma is very nearly a fully integrated organization, with research and development [R&D] capabilities that many Big Pharma companies would covet. Its proprietary technological capabilities – bacterial cell expression [BCE], human engineering technology and antibody phage display [feel free to read my full report on XOMA to find out more about these technologies] – are positioned at the forefront of new ways to discover different therapeutic candidates.
I had a great meeting that helped me understand where the company’s competitive advantages lie. It has perhaps the largest phage display library in the world, and the company is now discovering ways to monetize this. Xoma has begun partnering with several large pharmaceutical companies; it should benefit from a renegotiated agreement with Novartis (NVS), as well as new deals with Schering-Plough (SGP), among others. Every alliance the company forms puts more money in their pocket and helps fund internal R&D.
I’m very excited about Xoma. Though the Street seems to be ignoring the company based on how low the price and size of the company are right now. Certainly it does have a small market cap perspective, but when you see that this company rivals large biotech companies like Genentech (DNA) and Amgen (AMGN) in terms of products under development and technology – including its ability to license and collaborate – it appears Xoma has a really strong future. I’d say the Street is overlooking this stock at the present time.
What particularly notable technologies does Xoma have that investors should keep an eye out for?
Basically, the three big ones that I already mentioned: bacterial cell expression, human engineering technology and antibody phage display. Perhaps it’s better to think of Xoma as more of a research company. These technologies are what Big Pharma companies are going to need in order to develop their next-generation blockbuster drugs in the coming years. And at $1.65 per share, this is a great opportunity for investors to get in front of a strong run for Xoma, maybe by as early as the end of this year. ...." |
