Five Penny Stocks that Captured the Attention of Billionaires

XOMA Corp (NASDAQ:XOMA) is the hedge funds’ top penny stock bet from the biotech industry. It lost 80% during the third quarter. Overall, it is down by 71% year-to-date, mainly on the back of terrible results from a Phase 3 study that did not meet its primary endpoint. However, earlier this month, Xoma managed to sign a licensing agreement with Novartis, which includes the global development and commercialization rights to Xoma’s growth factor-beta antibody program. The deal will provide XOMA Corp (NASDAQ:XOMA) with up to $517 million, including a $37 million upfront payment. The rest will depend on the future achievement of its development and hitting certain milestones. Xoma might also receive royalties from future product sales. On the back of the news, several analysts reiterated their bullish ratings, including Wedbush, which reaffirmed an ‘Outperform’ rating with a price target of $6.00, down from $11.00. Among investors bullish on XOMA Corp (NASDAQ:XOMA) are several healthcare-focused funds, such as Baker Bros. Advisors and Kevin Kotler’s Broadfin Capital. In addition, D. E. Shaw, founded by billionaire David E. Shaw, and Millennium Management were also long Xoma at the end of June.