Xoma (NASDAQ:XOMA) Continues to Soar on XOMA-052

Based on the potential concerning their diabetes drug which blocks the interleukin-1 protein, which may cause or worsen autoimmune and inflammatory diseases such as diabetes, Xoma (NASDAQ:XOMA) shares have exploded over the last three trading days on the potential surrounding XOMA-052.

Not only is the drug itself considered potentially very lucrative, but the possibility of creating an entire class of effective drugs is the impetus behind the surging share price of the company.

If positive results emerge from a Phase IIa study in the first half of 2011, the share price could shoot to the moon in a relatively short time, as it already did last week.

On December 20 the stock price stood at $2.38, and at close on December 23, rocketed to close at $7.16, up $2.66 on the day, a 59.11 gain.

Volume was almost 30 times the average trading volume over the last 3-months.