Dr. Paul Rubin bought stock for his 401k today. I have a difficult time understanding why shorts are piling on Xoma. There is now about 9 million shorts on a 68mm float. They have to think Dr. John Varian is lying to investors. They are WRONG.
What is the short arguement? There is almost 9 million short shares out of 68 total shares. They have to think John Varian is lying about XMET's existance. Varian has said Xoma is negotiating a deal for XMET. He said XMETA will replace the need for insulin. Even without XMET, Xoma has 2 phase3 drugs. Gevokizumab is in phase3 for at least 2 diseases. And in at least 3 phase2 trials(Acne,Arthritis of hand, Cardiovascular and an undisclosed partnered disease). I think the partnered disease is Multiple Myloma and Melanoma. Xoma hinted a few years ago by disclosing the Mayo Clinic results.Xoma just got patents for IL-1 Supression in Cancers. Novartis,Lilly, Abbott and Amgen all have IL-1 drugs that show great effectiveness.
Xoma985 is almost done with its phase3 hypertension trial, and will surely surpass a billion a year in sales within a year. Xoma985's asset value is worth over a billion dollars, without question. Just because Xoma does not mention its existance doesn't mean it doesn't exist. Xoma also owns Aceon which generates 3 million in earnings.
So what is the Short arguement?
Gator...there is no argument for the short interest runup.....the shorts are clearly on a path of impending doom.
The article below confirms that Xoma's XMetA study was also confirmed by investigators at the University of California, San Francisco. The XMet antibody lineup may very well be the holy grail for controlling diabetes.
A partnership announcement could come any day!
Here's the article:
Study Establishes XOMA's XMetA as the First Allosteric Insulin Receptor-Activating Antibody to Improve Glycemic Control In Vivo
09 Mar 2012
Study Published Online in Journal Diabetes
BERKELEY, CA, USA I March 8, 2012 I XOMA Corporation (Nasdaq:XOMA - News) announced that its study of XMetA, the company's fully-human allosteric monoclonal antibody to the insulin receptor, is available online and will be published in the May issue of the American Diabetes Association's journal Diabetes. XMetA is the first antibody specific for the insulin receptor shown to correct hyperglycemia in a mouse model of diabetes. Results of a study conducted by XOMA and confirmed by investigators at the University of California, San Francisco, demonstrate that XMetA has the potential to be a novel, long-acting agent for the control of blood glucose levels in patients with diabetes.
The study by Bhaskar, et al. demonstrated that XMetA markedly reduced elevated fasting blood glucose levels and normalized glucose tolerance in mice experimentally rendered diabetic. After six weeks of treatment, there was a statistically significant reduction in hemoglobin A1c levels in animals treated with XMetA compared to controls (p