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Omeros Corporation (OMER)
:OMER
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Omeros
(NASDAQ:OMER)
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Rating:40Underperform
Price Target:―
Omeros faces significant financial instability with no revenue and high debt, which heavily impacts its score. Technical indicators suggest some potential for short-term recovery, but poor valuation and ongoing losses are concerning. The company's strategic focus on drug development and partnerships offers some optimism, but financial recovery is crucial for improvement.
Positive Factors
Strong Cash Position
A strong cash position provides Omeros with the financial flexibility to support ongoing operations and fund its development pipeline, crucial for long-term sustainability.
Pipeline Progress
Advancements in the development pipeline, particularly in oncology and infectious diseases, indicate potential future revenue streams and strengthen the company's market position.
Debt Restructuring
Significant debt reduction improves financial stability and reduces interest burden, enhancing the company's ability to invest in growth opportunities and manage cash flow effectively.
Negative Factors
Net Loss
Ongoing net losses highlight persistent financial challenges, limiting the company's ability to reinvest in growth and potentially impacting its long-term viability.
OMIDRIA Revenue Decline
Declining revenue from OMIDRIA, a key product, suggests challenges in maintaining sales momentum, which could affect cash flow and financial health.
High Debt Load
A high debt load relative to equity poses significant financial risk, potentially limiting the company's ability to secure additional financing and invest in growth initiatives.
Omeros (OMER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$582.80M
Dividend YieldN/A
Average Volume (3M)6.30M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue GrowthN/A
EPS Growth12.32%
CountryUS
Employees202
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.47
Shares Outstanding70,900,460
10 Day Avg. Volume2,077,952
30 Day Avg. Volume6,302,146
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)-3.15
Price to Sales (P/S)0.00
P/FCF Ratio-3.86
Enterprise Value/Market Cap1.03
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-56.54
Enterprise Value/Ebitda-5.24
Forecast
1Y Price Target
$13.11Price Target Upside74.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Omeros Business Overview & Revenue Model
Company DescriptionOmeros Corporation (OMER) is a biopharmaceutical company focused on discovering, developing, and commercializing small-molecule and protein therapeutics for various medical conditions. The company operates primarily in the field of inflammation, coagulopathies, and central nervous system disorders. Omeros' lead product, Omidria, is used in cataract and lens replacement surgery to prevent intraoperative miosis and reduce postoperative ocular pain. Additionally, the company is engaged in multiple clinical-stage development programs targeting conditions such as complement-mediated diseases and addiction.
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 Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
Omeros Corporation's earnings call highlighted a strategic partnership with Novo Nordisk, significant progress in regulatory approvals for Yartemlia, and improved financial positioning through debt repayment. Despite reporting a higher net loss and cash burn, the company's robust pipeline and upcoming milestones position it for potential future success.Q3-2025 Updates
Positive Updates
Strategic Partnership with Novo Nordisk
Omeros Corporation announced a definitive agreement with Novo Nordisk for an asset purchase and license transaction valued at up to $2.1 billion, including $240 million in upfront cash and additional milestone payments.
Yartemlia (Narsoplimab) Regulatory Progress
The biologics license application for Yartemlia in the treatment of TATMA is under FDA review with a PDUFA date of December 26, 2025. The EMA is also reviewing Yartemlia, with a decision expected in mid-2026.
Financial Position and Debt Management
Omeros Corporation plans to use the $240 million upfront payment from Novo Nordisk to fully repay its $67.1 million term loan and remaining 2026 convertible notes, significantly improving its financial position.
Strong Pipeline and Future Prospects
Omeros Corporation continues to advance its MASP-2, PDE-7, TCAT, and oncology programs, with Yartemlia expected to transform transplant patient outcomes and strategic capital to fuel further growth.
Negative Updates
Increased Net Loss
Omeros Corporation reported a net loss of $30.9 million for the third quarter of 2025, compared to $25.4 million in the previous quarter, including $8.8 million in non-cash charges.
Cash Burn and Limited Reserves
Cash burn for the quarter was $22 million, leaving Omeros Corporation with $36.1 million in cash and investments as of September 30, 2025.
Company Guidance
During the earnings call for Omeros Corporation, several key metrics and guidance points were discussed. The company reported a net loss of $30.9 million, or $0.47 per share, for the third quarter of 2025, which included $8.8 million in noncash charges. Excluding these charges, the adjusted net loss was $22.1 million, or $0.34 per share. Omeros Corporation's cash burn for the quarter was $22 million, leaving them with $36.1 million in cash and investments as of September 30, 2025. A registered direct offering generated $20.3 million in net proceeds, priced at a 14% premium to the market. The company anticipates closing a significant transaction with Novo Nordisk later this quarter, valued at up to $2.1 billion. Upon closing, Omeros will receive $240 million upfront to repay existing debt and fund operations. The company's anticipated US launch of narsoplimab for the treatment of transplant-associated thrombotic microangiopathy (TATMA) is contingent on FDA approval, expected by December 26, 2025. The company also discussed its MASP-2 antibody, Yartemlia, which remains under FDA review with a PDUFA date set for December 26, 2025, and is under review by the European Medicines Agency (EMA) with a decision anticipated in mid-2026. They are also advancing other pipeline programs, including MASP-2, oncology, TCAT, and PDE-7, and aim for potential cash flow positivity by 2027.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.20
Very Negative
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
Negative
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -10.59M | 0.00 | 0.00 | 0.00 | -1.39M | -1.62M |
| EBITDA | -114.42M | -157.00M | -143.16M | -158.38M | -170.49M | -168.02M |
| Net Income | -121.16M | -156.81M | -117.81M | 47.42M | -111.41M | -138.06M |
Balance Sheet | ||||||
| Total Assets | 185.71M | 277.08M | 378.27M | 590.97M | 419.27M | 181.04M |
| Cash, Cash Equivalents and Short-Term Investments | 36.09M | 90.13M | 171.85M | 194.92M | 157.27M | 134.95M |
| Total Debt | 191.61M | 207.02M | 361.58M | 342.02M | 347.84M | 268.84M |
| Total Liabilities | 406.18M | 459.69M | 403.25M | 505.29M | 395.49M | 301.79M |
| Stockholders Equity | -220.48M | -182.61M | -24.98M | 85.68M | 23.78M | -120.75M |
Cash Flow | ||||||
| Free Cash Flow | -105.32M | -148.97M | 74.30M | -86.60M | -110.00M | -100.37M |
| Operating Cash Flow | -105.23M | -148.80M | 74.73M | -86.48M | -109.72M | -100.09M |
| Investing Cash Flow | 87.93M | 82.22M | 27.45M | -127.56M | 193.71M | -67.03M |
| Financing Cash Flow | 18.18M | 62.88M | -106.08M | 124.25M | 6.32M | 174.53M |
Omeros Technical Analysis
Positive
7.52
Price Trends
6.88
Positive
5.46
Positive
5.68
Positive
Market Momentum
0.80
Negative
63.19
Neutral
71.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMER, the sentiment is Positive. The current price of 7.52 is below the 20-day moving average (MA) of 8.10, above the 50-day MA of 6.88, and above the 200-day MA of 5.68, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $259.03M | 4.10 | 75.90% | ― | ― | ― | |
47 Neutral | $199.55M | -2.85 | ― | ― | -3.91% | 37.89% | |
45 Neutral | ― | ― | ― | ― | -100.00% | 72.45% | |
40 Underperform | $582.80M | ― | ― | ― | ― | 12.32% | |
37 Underperform | $315.25M | ― | -64.31% | ― | ― | 4.23% | |
33 Underperform | $451.83M | -1.78 | -104.35% | ― | ― | 20.71% |
* Healthcare Sector Average
OMER
Omeros
9.43
-2.25
-19.26%
ALDX
Aldeyra Therapeutics
4.87
-0.09
-1.81%
ABEO
Abeona Therapeutics
4.55
-1.46
-24.29%
IMAB
I-MAB
4.00
2.91
266.97%
FHTX
Foghorn Therapeutics
4.29
-3.09
-41.87%
NMRA
Neumora Therapeutics, Inc.
2.23
-7.54
-77.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.