Xoma Corp.'s common stock rose $2 to close at $28.50 onTuesday, following positive recommendations by two securitiesanalysts.
Alex. Brown & Sons analyst David Webber reiterated a "strongbuy" on Xoma (NASDAQ:XOMA), calling it the "single mostundervalued" biotech stock. His six-to-12 month price targetfor the stock is $40. Webber said he thinks that Xoma's E-5septic shock product and its CD-5 for graft-vs.-host disease willboth receive Food and Drug Administration marketing approvalthis year.
Mark Simon, a biotech analyst at Robertson Stephens & Co. inSan Francisco, raised his rating on Xoma to "buy-hold" from"hold-hold," based on his belief that both E-5 and Centoxin, acompeting drug developed by Centocor Inc., might be reviewedby an FDA advisory committee in July.
Simon said Centoxin will be the drug of choice for septic shock,but some analysts think the market is large enough toaccommodate both products.
Webber said Centocor stock (NASDAQ:CNTO) is overvalued.Centocor stock closed at $78.50, up $1.50.
(c) 1997 American Health Consultants. All rights reserved.