New article. Mildly bullish. Here's the last part:
XOMA is a mid-cap biopharma that is rapidly developing its lead clinical candidate gevokizumab with its partner Servier for a wide variety of indications. On the back of positive Phase II POC results for moderate to severe acne and Servier's ongoing EYEGUARD trials, the stock has begun to take flight. Even so, there are a number of pending catalysts for gevokizumab in the coming weeks, which should further help to bolster XOMA's PPS. While the company will almost certainly use this opportunity to raise additional funds, I believe this is a good thing in the long run, as it allows XOMA to expand its clinical activities. On a final note, I am expecting the EOA trial results announced this month to be a positive catalyst for the stock, especially in light of the fact that Kineret appears to work in this condition. In sum, there are a number of reasons why traders and investors alike should take a look at XOMA.
I hate it of course but this guy makes a pretty good case for it being not that crushing a blow:
As of June 30th, 2013, XOMA had roughly $58 M in cash and cash equivalents, with a burn rate of $4.3 M a month. Adding to its cash reserves, XOMA raised $29M via a secondary offering last month. Although the company had previously stated that it expected its cash needs to be met into late 2014 based on its previous current financial situation, this "smallish" secondary offering is likely a taste of things to come, in my opinion. Namely, I believe XOMA will use one of the upcoming catalysts to raise funds again via a larger secondary offering.
According to my estimates, the company should have about $69 M in the till around November. If the company is serious about advancing one of its indications for gevokizumab into a Phase III trial (assuming Servier doesn't opt in per their agreement), this is nowhere near enough money. And it only makes sense to execute a secondary around a positive catalyst for PPS.