Arena Pharmaceuticals and XOMA Poised for Growth

Reuters recently released an article arguing health-care costs are outpacing consumer inflation, leading government and industry to seek ways to cut costs. Reuters' 2012 biotech outlook says this could mean an even greater reliance upon drugs. The Paragon Report examines the outlook for companies in the Biotechnology industry and provides equity research on Arena Pharmaceuticals Inc. and XOMA Corporation.

www.paragonreport.com/ARNA www.paragonreport.com/XOMA

Gunderson Capital Management argues that part of biotech's rally is being driven by expectations that President Barack Obama's health care reform plan may be repealed. Earlier this month House Republicans pushed through a resolution in support of a Constitutional amendment that would repeal Obamacare. House Resolution 1003 asks Congress to call a constitutional convention to propose an amendment to repeal the Affordable Care Act, which is also set to be challenged before the Supreme Court this year.

XOMA’s lead drug candidate is gevokizumab (XOMA 052), a humanized antibody that binds to the inflammatory cytokine interleukin-1 beta, or IL-1 beta. Earlier this month the company announced that it acquired U.S. rights to the perindopril franchise from Les LaboratoiresServier, XOMA's partner for its lead product candidate, gevokizumab.