Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: BostonView who wrote (14077)	7/11/2000 4:45:45 PM
From: Bluegreen	Respond to of 17367

MAKE WAY FOR THE POSSIBLE BIG PORTERHOUSE!!!!! BREAK OUT THE CIGARS!!!!!!!!!! WOW!!!!>>>>>>>>>>XOMA surges after favorable report by Wall St. firm NEW YORK, July 11 (Reuters) - Shares of California biotech company XOMA <XOMA.O> jumped over 50 percent on Tuesday after U.S. Bancorp Piper Jaffray initiated coverage of the firm with a "strong buy" rating, citing "exciting" prospects for its experimental drug for treatment of psoriasis. The stock was up 2-3/8 to 6-5/8, or 56 percent, with over 13 million shares exchanging hands on the Nasdaq in early afternoon activity. Shares have traded in the past 52 weeks in a range between 2 and 16. Mark Augustine, pharmaceutical analyst for U.S. Bancorp, said in a research report he believed "the XOMA story is undiscovered and its shares are significantly undervalued." XOMA is developing the psoriasis drug in collaboration with biotech giant Genentech Inc <DNA.N> of South San Francisco. The drug is a humanized antibody designed to limit activation of T-cells, immune system compounds which seek out and destroy pathogens and other "foreign" invaders. T-cells sometimes go overboard, however, by mistaking the body's own tissues as foreign and attacking them. Psoriasis, an autoimmune disease, is believed to be caused by such an overreaction. XOMA's drug is meant to interfere with the CD11a protein which is found on the surface of T-cells, thereby taming the T-cells without preventing them from going about their normal chores of destroying viruses and other real invaders. Augustine said new treatments are needed for psoriasis, an inherited condition affecting an estimated 5 million Americans marked by eruption of scaly patches on the elbows, knees, scalp and trunk. He said data from two ongoing Phase III studies of XOMA's anti-CD11a drug might be available next year, seting the stage for a possible product launch in 2002 and eventual peak annual sales of about $500 million for psoriasis. XOMA will likely receive 25 percent of profits on Genentech's U.S. sales of the drug, and a 5 percent royalty on sales elsewhere, Augustine said. Based on those calculations, the analyst set a 2-year price target of $14 on XOMA shares, adding that XOMA could reap greater sales from the anti-CD11a drug if it is eventually approved for other autoimmune diseases. "XOMA has been a very undervalued and underappreciated stock," said Richard Stover, an analyst with Arnhold and S. Bleichroeder who estimated its psoriasis treatment could garner peak annual sales of $1 billion. "It demonstrated strong effectiveness in earlier Phase II trials. The current Phase III trials are meant to confirm what we've already seen," Stover added. Stover predicted the company will next test the compound against several other diseases, including rheumatoid arthritis. 14:21 07-11-00<<<<<<<<<<<<<<<<<<<<<<<<