Why Did Wedbush Downgrade Xoma?

Wedbush has cut XOMA Corporation XOMA to neutral from outperform and lowered its price target to $22 from $41.
Analyst Liana Moussatos notes that Novartis AG NVS abandoned iscalimab as a kidney transplant candidate following disappointing phase 2b results.
Related Content: Novartis Stops Iscalimab Trial In Kidney Transplant Patients.
Novartis continues to assess iscalimab in liver transplantation in the Phase 2b CONTRAIL I study, and in Phase 2a study for Hidradenitis suppurativa with topline results expected in 2023, Moussatos adds.
Based on recent guidance, the analyst now anticipates topline results from the Phase 2b TWINSS study assessing iscalimab in Sjogren's syndrome in 2022 from 2H of 2021.
Price Action: XOMA shares are down 10.7% at $25.79 during the market session on the last check Tuesday.