Biotech Values

[DewDiligence]

I took profits on XOMA today. The delay in enrolling patients in the EYEGUARD-A and EYEGUARD-C studies is bearish for two reasons: i) it almost certainly means XOMA will have to raise capital fairly soon; and ii) it puts in question whether the EYEGUARD-A and EYEGUARD-C studies will ever enroll enough patients to have sufficient statistical power to demonstrate efficacy in NIU. (The notion that EYEGUARD-B in Behçet’s disease could become the centerpiece of XOMA’s business model doesn’t fly, IMO, for the reasons stated in #msg-90783638.)

All told, I can’t complain. I bought at $2.42 in Dec 2012 (#msg-82928612) and sold today at $4.89, a gain of 102% in a little over seven months. I may buy back at some point, depending, of course, on the valuation.