Xoma Corp. (XOMA, Financial) stock rose 26% by the end of last week as investors eagerly awaited the company's latest earnings report.
The company's highly anticipated release came at a time when the company's stock had struggled to maintain consistency.
Its stock plummeted in July 2015, losing over 80% of its value in a 30-day period. Xoma stock skyrocketed in October 2016. The stock gained 1,400% in less than a week, rising from October lows of 35 cents per share to current values of over $5 per share. The company was one of the top gainers last week as investors expected the company to report a rise in EPS.
The company kept investors waiting following an anticipated release on March 7. Xoma's stock upswing over the past six months has rejuvenated investor interest following a rough 2015. The company faced several lawsuits in 2015 thanks to late-stage drug failures that kept the company from higher revenue growth.
The company's much-awaited Candidate 358 drug is in the planning stages to begin clinical studies on children. A radical change in management led to Jim Neal being named CEO of the company in December. The company reduced overhead expenditures and cut 57 employees from the company's work force in an effort to keep costs down.
Xoma's third-quarter earnings fell to -$2.08 per share versus -8 cents during the same period a year prior. Revenue plummeted more than 66% from $2.07 million a year prior down to $635,000 in third-quarter 2016. The company's revenue on the third quarter fell to $1.2 million.
The third-quarter earnings release stated that the company had enough capital to fund its operations into the first quarter of 2017.
The company announced a $25 million registered offering in February 2017. The company agreed to sell 5,003 shares of convertible preferred stock and 1.2 million shares of common stock to Biotechnology Value Fund LP. The shares of the company's common stock were purchased for $4.03.
Convertible stock can be converted to 1,000 common stock shares at a value of $4.03 per share.
Xoma released its earnings before the opening bell on March 16. The company reported a fourth-quarter loss of $17.5 million. During the same period a year prior, the company posted a profit. The company's per share loss is $2.89.
Revenue during the fourth quarter was $524,000. Revenue on the year topped $5.6 million with total annual losses of $53.5 million. The company's loss per share was $8.89 for 2016.
The company held its fourth-quarter earnings call with investors on Thursday morning, boasting of its latest leadership change with James Neal taking the helm. The company's revenue focus shows nondilutive revenue of $83 million over the last 18-month period. The company further reduced operating cash losses by more than 50%.
The company's reduction in staff and $18 million in royalty streams were noted in the call.
Restructuring costs for the final quarter of the year were $4.6 million. The company expects a $10 million milestone payment in the near term and to pay down the remaining Herculean debt in the coming weeks.
Disclosure: Writer does not own any shares in the listed companies.
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