Xoma Loss Surprises but Shares Gain

The biotech firm gets a revenue boost from a settlement with Baxter Healthcare.

Author:: Joel Rothstein
Publish date:: Nov 12, 2003 1:27 PM EST

The biotech firm gets a revenue boost from a settlement with Baxter Healthcare.

Biotech company

Xoma

had a wider-than-expected loss in the third quarter but had higher revenue, thanks to a one-time license termination settlement.

Xoma shares were up 27 cents, or about 4%, to $6.97.

The Berkeley, Calif.-based company lost $9.9 million, or 13 cents a share, on revenue of $12.3 million, compared with a loss of $12.3 million, or 17 cents a share, on sales of $4.3 million a year ago. Analysts polled by whomson First Call expected a loss of 11 cents a share on revenue of about $10 million.

Xoma benefited from a $10 million fee from

Baxter Healthcare

(BAX) - Get Report

relating to a pediatric drug the companies will no longer be co-developing.

The company reiterated that it expects full-year losses to widen in 2003 because of increased research and development expenses and marketing costs related to its recently approved drug Raptiva.

Analysts expect Xoma to lose 67 cents a share on revenue of $22 million this year, vs. 47 cents a share and sales of $30 million in 2002.

Xoma's stock is up 50% this year but is off its 52-week high of $10.70.