Biopharmaceutical company Xoma (XOMA) is having its luck day. After its stock traded down as low as $2.24, its shares are up almost 20% today on news that it bacterial cell expression technology to Pfizer to Pfzier (PFE). The deal comes with a $30 million up-front payment.
While that may not seem like much, XOMA lost $7.5 million on revenue of $14.1 million in the last quarter.
The stock still appears expensive, with a market cap of $370 million.
Maybe the royalties on the Pfizer deal, if there end up being any, will help justify the company’s valuation.
Douglas A. McIntyre