Biotech company XOMA Corporation ($XOMA) announced the price of their common stock offering on Thursday that sent the price of shares on an upward trajectory.
XOMA is offering 7.6 million shares at $3.62 a share, which should net the company around $25.5 million. Also, the company is allowing underwriters a 30 day option on an additional 1.14 million shares.
The Berkeley, Ca.-based biotech firm's flagship drug (and focus of principal reserach) is called gevokizumab. The drug is a humanized monoclonal antibody which is used primarily in the treatment of diabetes. On July 22 the drug entered Phase 2 of the approval process. Gevokizumab is also currently in phase III development for treating non-infectious uveitis and Behçet’s uveitis, which are multiskeletal inflammatory disorders.
On Aug. 7, the company reported a 21 cent per-share loss for the second quarter of 2013, missing revenue estimates by 21 percent. XOMA’s stock dropped precipitously on the news, losing around 20 percent of its value. In March, the stock was thought to be the most undervalued biomed stock under $10.
XOMA is down 20.27 percent on the month, hurt by the lagging earnings for the second quarter. But with Thursday's offering, the stock shot up 11.17 percent to hit $4.47 a share.