March 4- Xoma Corp said it would not proceed with late-stage studies of its lead drug, gevokizumab, as a treatment for a form arthritis of the hand, after data from two mid-stage studies showed that the drug was not effective enough. Xoma said its analyses of the study did not show a significant drug-related benefit even after six months.
BERKELEY, Calif.-- Shares of Xoma Corp. slid Wednesday after the biotechnology company said that it will sell 13.3 million shares of its common stock at $3 per share, a 7 percent discount to its closing price of $3.22 on Tuesday. Xoma anticipates proceeds of roughly $36.9 million from the offering.
*Entered into an amendment to its loan agreement dated as of December 30,. *Says amendment provides for an additional term loan in the amount of $4.6. *Agreement involves co's unit as borrower and General Electric capital.
After a hot streak, biotech stocks lose value as clinical trials fail.
Xoma Ltd., the subject of a prominent, front page New York Times Sunday Business section article earlier this year headlined, "It's Alive! One of Biotech's Zombies", is leaving the Zombies behind. The shares of the small cap are up more than 20% on heavy volume. The Times piece described how the 26-year-old company had yet to turn a profit (the overwhelming majority of biotechs don't make money),