XOMA Corporation (XOMA - Snapshot Report) reported a loss of 12 cents per share in the fourth quarter of 2014, much narrower than the year-ago loss of 55 cents per share.

Revenues for the reported quarter came in at $4.3 million, significantly lower than the year-ago revenues of $12.5 million and the Zacks Consensus Estimate of $9 million.

Full-year losses decreased 53.1% to 67 cents per share. Revenues declined 46.8% to $18.8 million.

Revenues declined primarily due to lower revenue under the company’s cost-sharing agreement with SERVIER and lower license fee revenue including the $7 million milestone payment received from Novartis (NVS - Analyst Report) in 2013.

Quarterly Details

R&D expenses decreased 15.5% year over year to $19.4 million. This was primarily due to lower external manufacturing costs and preclinical activities, partially offset by higher costs related to the development of gevokizumab.

SG&A expenses decreased 18.9% year over year to $4.1 million. Reduction in consulting and professional expenses led to the decline.

XOMA expects approximately $60 - $65 million in cash to be used for ongoing operating activities in 2015. The ongoing phase III gevokizumab studies are expected to account for major part of the expenses.

XOMA’s lead candidate, gevokizumab, which is being developed in collaboration with SERVIER, is in phase III studies for Behçet's disease uveitis, non-infectious uveitis and pyoderma gangrenosum.

The company intends to pursue Behçet's disease uveitis as the first indication for gevokizumab.

XOMA carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector are Cytokinetics Inc. (CYTK - Snapshot Report) and Cambrex Corp. (CBM - Snapshot Report). Both are Zacks Rank #1 (Strong Buy) stocks.

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