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Omeros Corp (OMER)
NASDAQ:OMER
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Omeros
(NASDAQ:OMER)
40Underperform
Positive Factors
Analyst Recommendation
Analyst recommends a Strong Buy rating for OMER and increases the 12-month price target to $45.00.
Clinical Development
OMER recently announced site activation for enrollment in Phase 3 trials of a follow-on product, zaltenibart as a treatment for paroxysmal nocturnal hemoglobinuria (PNH).
Product Effectiveness
Narsoplimab reduced the risk of mortality in high-risk TA-TMA patients by over one-half to one-third compared to patients not treated with narsoplimab.
Negative Factors
Financial Concerns
Options for addressing financial concerns are limited to potentially dilutive equity financing or forming a partnership.
Financial Stability
The company is facing financial challenges with cash not providing a runway beyond the second quarter of 2024.
Regulatory Approval
There is skepticism about FDA approval due to the limited narsoplimab clinical dataset and the lack of new clinical data.
Omeros (OMER) vs. S&P 500 (SPY)
Market Cap
$369.66M
Dividend YieldN/A
Average Volume (3M)747.98K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue GrowthN/A
EPS Growth-43.76%
CountryUS
Employees202
SectorHealthcare
Sector Strength60
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.54
Shares Outstanding58,305,843
10 Day Avg. Volume465,526
30 Day Avg. Volume747,984
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.45
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-12.98
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.79Price Target Upside306.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Omeros Business Overview & Revenue Model
Company DescriptionOmeros Corporation, a commercial-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting inflammation, complement-mediated diseases, cancers related to dysfunction of the immune system, and addictive and compulsive disorders. The company's clinical programs include Narsoplimab (OMS721/MASP-2) that has completed pivotal studies for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (HSCT-TMA); that is in Phase III clinical trial for immunoglobulin A nephropathy (IgAN) and atypical hemolytic uremic syndrome (aHUS); and Phase II clinical trial to treat COVID-19. Its clinical programs also consist of PPAR? (OMS405) that is in Phase II to treat opioid and nicotine addiction; PDE7 (OMS527), which is in Phase I trial for treating addiction and compulsive disorders, and movement disorders; and MASP-3 (OMS906) that is in Phase I trial for paroxysmal nocturnal hemoglobinuria (PNH) and other alternative pathway disorders. The company's preclinical programs comprise MASP-2-small-molecule inhibitors used for the treatment of aHUS, IgAN, HSCT-TMA, and age-related macular degeneration; longer-acting second generation antibody targeting MASP-2; and MASP-3-small-molecule inhibitors to treat PNH and other alternative pathway disorders. Its preclinical programs also include GPR174 Inhibitors and Chimeric Antigen Receptor (CAR) T-Cell and Adoptive T-Cell Therapies for various cancers; and G protein-coupled receptor targets for treating immunologic, immuno-oncologic, metabolic, CNS, cardiovascular, musculoskeletal, and other disorders. The company was incorporated in 1994 and is headquartered in Seattle, Washington.
How the Company Makes MoneyOmeros Corporation makes money primarily through the sales of its commercial product, Omidria. Revenue is generated by selling Omidria to hospitals, ambulatory surgery centers, and other medical facilities where cataract and lens replacement surgeries are performed. The company has also received funding and financial support through partnerships, government grants, and collaborations to support its research and development activities. Additionally, Omeros may receive milestone payments and royalties from licensing agreements related to its pipeline products in development, though the majority of its current revenue stems from Omidria sales.
Omeros Financial Statement Overview
Summary
Omeros is facing significant financial challenges, with consistent net losses and no revenue generation. The negative stockholders' equity and high debt load exacerbate its instability, and the company relies heavily on debt financing, which is unsustainable without revenue.Income Statement
Omeros' income statement reveals significant challenges, with no revenue generated in recent years, leading to negative gross and net profit margins. The company has struggled with consistent net losses, indicating severe profitability issues. There is no visible revenue growth, and operating margins are deeply negative, highlighting ongoing operational difficulties.―
Balance Sheet
The balance sheet shows a negative stockholders' equity, which is a concerning indicator of financial instability. The company has a high debt load relative to its equity, resulting in a negative debt-to-equity ratio. This leverage situation poses substantial risks. The equity ratio is also negative, further underscoring the weak financial position.30
Cash Flow
Cash flow analysis indicates persistent negative free cash flow, although there was a notable increase in operating cash flow in 2023. However, the operating cash flow remains negative overall. The company has been financing its operations through debt, which is unsustainable in the long term without generating revenue.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 73.81M | 111.81M | Gross Profit |
| -69.78M | -952.00K | -1.39M | 72.91M | 110.94M | EBIT |
| -164.53M | -163.39M | -173.62M | -110.60M | -63.38M | EBITDA |
| -163.61M | -162.44M | -172.23M | -168.02M | -144.25M | Net Income Common Stockholders |
| -117.81M | 28.78M | 194.24M | -138.06M | -106.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 171.85M | 194.92M | 157.27M | 134.95M | 60.79M | Total Assets |
| 378.27M | 590.97M | 419.27M | 181.04M | 136.97M | Total Debt |
| 361.58M | 342.02M | 347.84M | 32.55M | 35.82M | Net Debt |
| 354.48M | 331.01M | 247.03M | 22.05M | 32.74M | Total Liabilities |
| 403.25M | 505.29M | 395.49M | 301.79M | 245.99M | Stockholders Equity |
| -24.98M | 85.68M | 23.78M | -872.67M | -734.61M |
| Cash Flow | Free Cash Flow | |||
| 74.30M | -86.60M | -110.00M | -100.37M | -60.41M | Operating Cash Flow |
| 74.73M | -86.48M | -109.72M | -100.09M | -60.07M | Investing Cash Flow |
| 27.45M | -127.56M | 193.71M | -67.03M | -3.40M | Financing Cash Flow |
| -106.08M | 124.25M | 6.32M | 174.53M | 60.70M |
Omeros Technical Analysis
Negative
6.35
Price Trends
7.63
Negative
8.41
Negative
6.81
Negative
Market Momentum
-0.26
Positive
37.83
Neutral
5.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMER, the sentiment is Negative. The current price of 6.35 is below the 20-day moving average (MA) of 6.87, below the 50-day MA of 7.63, and below the 200-day MA of 6.81, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 5.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.24B | 3.76 | -41.88% | 2.85% | 17.01% | 0.78% | |
51 Neutral | $375.27M | ― | -57.76% | ― | -9.71% | 42.17% | |
50 Neutral | $404.63M | ― | -207.84% | ― | -14.02% | -72.44% | |
50 Neutral | $540.05M | ― | -45.46% | ― | -78.26% | 15.41% | |
48 Neutral | $440.78M | ― | ― | ― | ― | ||
40 Underperform | $369.66M | ― | 87.26% | ― | ― | -43.76% |
* Healthcare Sector Average
Performance Comparison
OMER
Omeros
6.35
2.82
79.89%
ZVRA
Zevra Therapeutics
7.51
2.35
45.54%
RLAY
Relay Therapeutics
2.95
-3.56
-54.69%
DNA
Ginkgo Bioworks Holdings
7.40
-28.34
-79.29%
UPB
Upstream Bio, Inc.
8.58
-14.80
-63.30%
SION
Sionna Therapeutics, Inc.
12.88
-9.36
-42.09%
Omeros Earnings Call Summary
Earnings Call Date:Mar 31, 2025
(Q4-2024)
| % Change Since: -22.75%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
The call conveyed optimism around the resubmission and approval prospects of narsoplimab, as well as the progress in Zaltenibart's development. However, financial challenges persist, as evidenced by ongoing net losses and decreased OMIDRIA royalties.Q4-2024 Updates
Positive Updates
Progress in Narsoplimab Approval
Omeros resubmitted the BLA for narsoplimab for TA-TMA treatment, showcasing significant survival benefits with a more than three-fold improvement in survival. The resubmission included strong statistical support and has a PDUFA date set for September 2025.
Zaltenibart Development
Zaltenibart is in Phase 3 development for PNH, with promising results in preliminary trials showing strong efficacy. The compound is expected to be a preferred choice for alternative pathway-related diseases due to its enhanced efficacy and convenient dosing.
Strong Cash Position
As of December 31, 2024, Omeros had over $90 million in cash and investments, indicating a solid financial position to support ongoing operations and developments.
Ongoing Development Pipeline
Continued advancement in multiple therapeutic areas, including the development of OMS1029 and OMS527, and promising progress in oncology and infectious disease programs.
Negative Updates
Net Loss
Omeros reported a net loss of $31.4 million for the fourth quarter of 2024 and $156.8 million for the full year. The losses indicate ongoing financial challenges.
Interest Expense
Interest expense for the fourth quarter was $3.2 million, although this was lower than the previous quarter, indicating ongoing financial obligations.
OMIDRIA Revenue Decline
OMIDRIA royalties decreased by $631,000 in the fourth quarter compared to the same period in 2023, showing a decline in revenue from this asset.
Company Guidance
During the earnings call, Omeros Corporation provided guidance on its financial performance and strategic initiatives for 2024. The company reported a net loss of $31.4 million, or $0.54 per share, for the fourth quarter, and a full-year net loss of $156.8 million, or $2.70 per share. As of December 31, 2024, Omeros had over $90 million in cash and investments. The company is in discussions to restructure its 2026 convertible notes and explore potential partnerships to bolster its financial position. Omeros has resubmitted its Biologics License Application (BLA) for narsoplimab in TA-TMA, with a PDUFA date set for September. Additionally, the company is advancing its Zaltenibart program, now in Phase 3 development for paroxysmal nocturnal hemoglobinuria (PNH), aiming for data submission by the fourth quarter of next year. Omeros is also preparing for the commercial launch of narsoplimab, with significant interest from transplant centers and ongoing efforts to secure ICD10 and CPT codes for reimbursement.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.