Xoma's Stock Plunges Below $1 After Trial Results Disappoint

Biotechnology company Xoma Corp.'s stock crashed 81% in premarket trade Wednesday, after the company said a late-stage trial of its treatment (gevokizumab) for Behcet's disease in the eye missed the primary endpoint. The stock is on course to trade below $1 after the open for the first time. Premarket volume of 6.4 million shares is already above the full-day average of 4.2 million shares. The company said it would continue to work with its partner Servier to thoroughly analyze the trial data to understand gevokizumab's impact. "Although the study did not achieve its main objective, we did see signals of drug activity such as preserved visual acuity, less severe ocular exacerbations and a reduced incidence of reported macular edema in patients treated with gevokizumab," Chief Medical Officer Paul Rubin said in a statement. Prior to the selloff, the stock had run up 21% over the past three months, while the S&P 500 had gained 0.5%.