But Cardiovascular Biomarker Indicates Anti-Inflammatory Activity For XOMA052

Xoma (XOMA $3.55) said its lead Type 2 diabetes drug-XOMA052- in a Phase 2b study failed to meet its main goal of lowering blood glucose levels. The trial failed to achieve its primary endpoint of reduction in glycosylated hemoglobin or HbA1c after six months of treatment compared to placebo. The Company held out hope that the drug could be developed for cardiovascular applications because of the reduction in anti-inflammatory activity as measured by declines in C-reactive protein levels (CRP), a biomarker implicated in heart attacks and strokes. The study also showed a statistical improvement in high-density lipoprotein (HDL) cholesterol levels in two of the four dose groups.

Earlier this month we noted that Xoma is one of the “survivor” biotechs that went public in the 80’s and 90’s and always managed to find new technology and drug candidates to lure investors. The Company has raised over $850M since inception. The split adjusted decline in the stock is 98% since the June 1986 IPO. However traders in the stock had multiple opportunities to make money  for example huge spikes in the stock in ’87, early 90’s, and early 2000’s.

Xoma is partnered with other leading drug companies such as Genentech(Roche),Merck and Novartis for drug development utilizing its platform technology in antibody therapeutics. In the most recent quarter ending December 2010 the Company had contract and licensing revenues of $9.5M and a loss of $17.7M. Cash position was $37M.

Raygent » Biotech Chronicles #1: The Survivor Business Model

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