Xoma to stop testing drug as arthritis treatment; shares plunge

[riky]

Xoma to stop testing drug as arthritis treatment; shares plunge

United States drug developer Xoma Corp said it would not proceed with late-stage studies of its lead drug, an antibody called gevokizumab, as a treatment for a form of arthritis of the hand after two mid-stage studies showed the drug was not effective enough. Xoma also reported a larger-than-expected loss in the fourth quarter, citing higher research and development expenses. The study results are a blow to California-based Xoma, founded in 2011, as it seeks to brings its first drug to market. Speaking to analysts in a conference call, chief executive John Varian also said Xoma is no longer pursuing the study of the drug as a broad treatment for acne.

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