Xoma’s 4th-qtr profit falls as contract revenue tumbles; another Nasdaq notice expected

Xoma 4Q profit falls as contract revenue tumbles

BERKELEY, Calif. — Biotechnology company Xoma Ltd. said Thursday its fourth-quarter profit fell as its contract revenue dipped.

Xoma earned $3 million, or a penny per share, compared with $10 million, or 7 cents per share, during the same period a year earlier. Its revenue fell to $21.6 million from $36.9 million.

Analysts polled by Thomson Reuters expected it to post a loss of 3 cents per share on revenue of $15.2 million.

Xoma is developing a type 2 diabetes treatment, a potential heart drug, and an anti-botulism antibody.

The company has contracts and agreements with Takeda Pharmaceutical Company Ltd., Cephalon Inc., and Kaketsuken, a Japanese research foundation.

For the full year, the company earned $550,000, or broke even on earnings per share, compared with a loss of $45.2 million, or 34 cents per share, in 2008. Revenue rose to $98.4 million from $68 million.

The company currently does not meet certain Nasdaq listing standards for minimum share value. It has been warned its shares may be delisted and expects another letter from Nasdaq on or after March 16. The company said it will request a hearing.

Shares of Xoma rose a penny to close at 56 cents Thursday.