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Omeros Corp (OMER)
NASDAQ:OMER
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Omeros
(NASDAQ:OMER)
49Neutral
Positive Factors
Clinical Trials
Sensitivity analyses support and validate recently-reported results of a primary endpoint analysis in which patients treated with narsoplimab demonstrated superior survival compared to a historical group.
Regulatory Process
OMER plans to proceed with a BLA resubmission and an EMA filing based on positive statistical analysis results.
Negative Factors
Financial Stability
Concerns are noted due to OMER ending with cash of ~$123MM, debt of ~$164MM, and a 'going concern' in its 10Q filing.
Omeros (OMER) vs. S&P 500 (SPY)
Market Cap
$464.18M
Dividend YieldN/A
Average Volume (3M)492.31K
Price to Earnings (P/E)―
Beta (1Y)2.40
Revenue GrowthN/A
EPS Growth-817.72%
CountryUS
Employees198
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.30
Shares Outstanding57,949,760
10 Day Avg. Volume550,701
30 Day Avg. Volume492,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)307.00
Price to Cash Flow (P/CF)-3.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.14Price Target Upside168.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Omeros Business Overview & Revenue Model
Company DescriptionOmeros Corporation (OMER) is a biopharmaceutical company focused on the discovery, development, and commercialization of small-molecule and protein therapeutics targeting inflammation, coagulopathies, and disorders of the central nervous system. The company's pipeline includes product candidates for conditions such as schizophrenia, Huntington's disease, and addiction, along with therapies for complement-mediated disorders. Omeros is headquartered in Seattle, Washington.
How the Company Makes MoneyOmeros generates revenue primarily through the commercialization of its proprietary drug, OMIDRIA, which is used during cataract surgery or intraocular lens replacement to maintain pupil size by preventing intraoperative miosis and reducing postoperative ocular pain. Additionally, the company seeks to monetize its drug development pipeline through partnerships, licensing agreements, and potential future product sales. Omeros also receives funding through grants and collaborations with various research institutions and pharmaceutical companies, which contribute to its earnings.
Omeros Financial Statement Overview
Summary
Omeros faces significant financial difficulties, with negative net income, EBIT, and cash flow, alongside negative equity and high liabilities. Despite a slight improvement in net loss, the company's financial position remains precarious, reflecting the inherent risks of the biotechnology sector.Income Statement
Omeros exhibits a challenging financial position marked by negative net income and EBIT in the TTM (Trailing-Twelve-Months) period. The company's gross profit margin is positive but low, indicating high costs relative to revenue. The absence of revenue growth due to prior periods of zero revenue, combined with substantial negative net profit and EBIT margins, highlights significant profitability issues.20
Very Negative
Balance Sheet
The balance sheet reveals a negative stockholders' equity, indicating financial distress and a high debt-to-equity ratio due to negative equity. The equity ratio is negative as well, further highlighting financial instability. Return on equity is not calculable due to negative equity. The substantial liabilities relative to assets pose potential solvency risks.30
Negative
Cash Flow
Omeros struggles with negative operating and free cash flow in the TTM, reflecting ongoing cash flow challenges. The operating cash flow to net income ratio is negative, indicating difficulty in generating cash from operations. Without positive free cash flow growth, the company faces liquidity risks, impacting its ability to finance operations without external funding.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.37M | 0.00 | 0.00 | 0.00 | 73.81M | 111.81M | Gross Profit |
| 749.00K | -69.78M | -952.00K | -1.39M | 72.91M | 110.94M | EBIT |
| -173.36M | -164.53M | -163.39M | -173.62M | -110.60M | -63.38M | EBITDA |
| -163.50M | -163.61M | -162.44M | -172.23M | -168.02M | -144.25M | Net Income Common Stockholders |
| -134.53M | -117.81M | 28.78M | 194.24M | -138.06M | -106.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 60.50M | 171.85M | 194.92M | 157.27M | 134.95M | 60.79M | Total Assets |
| 95.94M | 378.27M | 590.97M | 419.27M | 181.04M | 136.97M | Total Debt |
| 151.45M | 361.58M | 342.02M | 347.84M | 32.55M | 35.82M | Net Debt |
| 145.59M | 354.48M | 331.01M | 247.03M | 22.05M | 32.74M | Total Liabilities |
| -4.22M | 403.25M | 505.29M | 395.49M | 301.79M | 245.99M | Stockholders Equity |
| 650.13M | -24.98M | 85.68M | 23.78M | -872.67M | -734.61M |
| Cash Flow | Free Cash Flow | ||||
| -154.91M | 74.30M | -86.60M | -110.00M | -100.37M | -60.41M | Operating Cash Flow |
| -154.65M | 74.73M | -86.48M | -109.72M | -100.09M | -60.07M | Investing Cash Flow |
| 163.51M | 27.45M | -127.56M | 193.71M | -67.03M | -3.40M | Financing Cash Flow |
| -37.98M | -106.08M | 124.25M | 6.32M | 174.53M | 60.70M |
Omeros Technical Analysis
Neutral
7.86
Price Trends
8.88
Negative
8.17
Negative
6.14
Positive
Market Momentum
-0.37
Positive
44.57
Neutral
44.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMER, the sentiment is Neutral. The current price of 7.86 is below the 20-day moving average (MA) of 8.42, below the 50-day MA of 8.88, and above the 200-day MA of 6.14, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 44.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OMER.
Omeros Risk Analysis
Omeros disclosed 33 risk factors in its most recent earnings report. Omeros reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Omeros Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.46B | 32.10 | 8.05% | ― | 17.35% | 151.40% | |
68 Neutral | $10.87B | 33.12 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $1.75B | 23.64 | 7.55% | ― | 8.94% | 5171.26% | |
51 Neutral | $5.83B | ― | -231.63% | ― | 42.53% | -15.29% | |
49 Neutral | $464.18M | ― | 87.26% | ― | ― | -817.72% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% | |
46 Neutral | $472.79M | ― | -63.37% | ― | -52.30% | 27.13% |
* Healthcare Sector Average
Performance Comparison
OMER
Omeros
7.86
4.21
115.34%
BMRN
BioMarin Pharmaceutical
70.60
-13.27
-15.82%
NBIX
Neurocrine
108.99
-30.11
-21.65%
SUPN
Supernus Pharmaceuticals
31.17
-1.81
-5.49%
SAGE
SAGE Therapeutics
7.85
-12.12
-60.69%
AXSM
Axsome Therapeutics
121.65
46.11
61.04%
Omeros Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -6.98% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in drug development programs, cost reductions, and regulatory advancements, particularly for narsoplimab and zaltenibart. However, financial challenges remain with decreased cash reserves and declining OMIDRIA sales. Despite these challenges, the sentiment leans positive due to strategic advancements and potential new revenue streams.Highlights
Reduced Net Loss
The net loss for Q3 2024 was $32.2 million or $0.56 per share, a significant improvement from the $56 million or $0.97 per share in Q2 2024.
Progress in Drug Development Programs
Ongoing development and Phase III program initiation for zaltenibart (OMS906), targeting PNH and C3G, with positive efficacy and safety data.
Regulatory Milestones
FDA pre-submission meeting for narsoplimab BLA resubmission was collaborative, with minor additional feedback requested. European marketing authorization application (MAA) for narsoplimab expected in H1 2025.
Rare Pediatric Disease Designation
zaltenibart received FDA rare pediatric disease designation for C3 glomerulopathy, potentially leading to a priority review voucher.
OMIDRIA Revenue Prospects
Expansion of separate payment for OMIDRIA in hospital outpatient departments starting January 2025, expected to grow sales significantly in the U.S.
Lowlights
Decreased Cash and Investments
Cash and investments decreased by $35.8 million since June 30, 2024, standing at $123.2 million as of September 30, 2024.
OMIDRIA Sales Decline
OMIDRIA royalties decreased by $1.6 million quarter-over-quarter, with net sales dropping from $36.4 million in Q2 2024 to $31 million in Q3 2024.
Company Guidance
During the Omeros Corporation earnings call for Q3 2024, detailed guidance was provided on several fronts. The company reported a net loss of $32.2 million or $0.56 per share, a significant improvement from the previous quarter's $56 million or $0.97 per share. Cash and investments stood at $123.2 million as of September 30, 2024, a decrease from $159 million at the end of Q2. The decrease in net loss was primarily attributed to reduced R&D expenses, including a $17.6 million expense for narsoplimab drug substance in the previous quarter. Upcoming strategies include leveraging the expanded payment for OMIDRIA in hospital outpatient departments starting January 2025, expected to significantly boost U.S. sales. Additionally, Omeros is preparing to resubmit its Biologics License Application for narsoplimab, with possible commercialization in 2025, and is advancing its Phase III trials for zaltenibart in treating paroxysmal nocturnal hemoglobinuria and C3 glomerulopathy. The company is also exploring further international market entries and potential additional indications for its drug candidates.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.