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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (9064)	9/25/1998 1:21:00 PM
From: Jennie	Respond to of 29382

Thank You for the info. My 401k only lets me move 4 times in any one quarter. I also have some money in Janus funds but it's not an IRA type of account. Have a good day. Jennie

To: Ditchdigger who wrote (9064)	9/26/1998 6:40:00 PM
From: Sergio H	Read Replies (3) \| Respond to of 29382

Ditchdigger, here's one Amigo's opinion of XOMA: XOMA, what is it? A development-stage company trying to create genetically-engineering pharmaceuticals to treat severe infections and immunologic disorders. They claim that their method can produce antibodies that more closely resemble human antibodies, having less chance of provoking an immune response in human hosts. Some things to look for in considering buying a developmental biotech: pipeline, cash burn rate, ability to market product once and if FDA approval is obtained, competition from similar and different types of drugs, potential market size for drug, alliances (commercial, financial, research community and colleges) and institutional/insider ownership. pipeline: lots of stuff in pretrial. Neuprex is presently in Phase II and Phase III trial, two separate applications: for the prevention of infections and infectious complications in patients suffering hemorrhage due to trauma, and for the treatment of meningococcemia (a severe bacterial infection). Neuprex had been granted orphan drug status for the treatment of meningococcemia. This means that XOMA has seven years of market exclusivity upon FDA approval, as well as financial and tax benefits. "The meningococcemia Phase III trial is scheduled to complete enrollment at the end of 1998. The earliest we will know results is after the 90-day follow-up period. Assuming the data are positive, we would complete the BLA (Biologics License Application) filing to FDA most likely by midyear." (from the Co. website.) Institutional/Insider ownership: Less than 10% institutional ownership. Insignificant insider ownership. Brokerage coverage : None Financial highlights: Increasing costs due to developing Neuprex and declining license revenues due to the July 1998 purchase of all BPI patents and patent applications possessed by Incyte Pharmaceuticals. From the 10q: "Research and development expenses in the first six months of 1998 were $4.6 million (30%) higher than for the same period in 1997, reflecting increased spending on clinical trials and manufacturing of the Company's Neuprex(TM) and hu1124 products. The increase was $2.9 million (37%) for the second quarter of 1998 compared to the same period in 1997. The Company anticipates R&D expenditures to continue at similar or somewhat higher levels throughout the rest of 1998, as patient accruals in clinical efficacy trials accelerate further. " and, "The second quarter 1998 results also include a non-recurring provision of $2.4 million related to an exclusive license with Incyte for all of Incyte's patents and patent applications relating to BPI." cash burn rate : In June 1998, the company drew down the remaining $12.5 million of a $25 million private financing arrangement. They have sufficient cash flow to fund their operations for the next year and are currently actively pursuing new avenues for future financing. Conclusions: XOMA is nearing the end of Phase III for treatment of meningococcemia. I don't know the size of the market for this drug, but I am guessing that it is not very large. No doubt FDA approval will be a significant step for XOMA, but it may not add a lot to their bottom line. Lack of institutional interest in share ownership and or research is a concern. Disclaimer : The above is of course is only my opinion and I welcome and invite discussion sharing or differening from my opinion.