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

To: bob zagorin who wrote (17127)	3/11/2005 4:04:27 AM
From: bob zagorin	Respond to of 17367

Xoma shares soar 35% on contract By Carolyn Pritchard, MarketWatch Last Update: 7:18 PM ET March 10, 2005 SAN FRANCISCO (MarketWatch) - Xoma Ltd.'s shares rocketed higher by 35 percent following Thursday's closing bell after the company said it was awarded a $15 million contract from a unit of the National Institutes of Health. Xoma shares added 37 cents in late trading to change hands for $1.41. Under terms of the 18-month contract from the National Institute of Allergy and Infectious Diseases, Berkeley, Calif.-based Xoma (XOMA: news, chart, profile) will produce three botulinum neurotoxin monoclonal antibodies designed to protect against the effects of biological agents used in terrorism. SRI International, an independent, nonprofit research institute based in Menlo Park, Calif. will be a subcontractor under the contract and will develop potency assays to support antibody characterization, Xoma said in a company statement.

To: bob zagorin who wrote (17127)	3/12/2005 12:47:58 AM
From: Edscharp	Read Replies (1) \| Respond to of 17367

So, how much of the $15M does Xoma get and how much does SRI, the subcontractor of this contract, get? As they say - the devil is in the details and in the case of this Xoma press release the details have been omitted, conveniently I suspect. I'll grant that this contract may be worth something for it's prestige value. Frankly, I'm amazed the government trusts them. But, it seems unlikely this contract will do much for Xoma's bottom line. What with it's huge burn rate and management's insatiable desire to award themselves for 30 years of failure.