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Omeros Corp (OMER)
NASDAQ:OMER
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Omeros
(NASDAQ:OMER)
35Underperform
Positive Factors
Analyst Recommendation
Analyst recommends a Strong Buy rating for OMER and increases the 12-month price target to $45.00.
Product Effectiveness
Narsoplimab is the only product that has shown effectiveness in treating TA-TMA.
Survival Benefit
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 Instability
The company is facing financial challenges with cash not providing a runway beyond the second quarter of 2024.
Regulatory Approval Skepticism
There is skepticism about FDA approval due to the limited narsoplimab clinical dataset and the lack of new clinical data.
Regulatory Process Uncertainty
The long process since the complete response letter and no better than 50/50 odds for approval contribute to uncertainty.
Omeros (OMER) vs. S&P 500 (SPY)
Market Cap
$390.77M
Dividend YieldN/A
Average Volume (3M)770.88K
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue GrowthN/A
EPS Growth-43.76%
CountryUS
Employees202
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.70
Shares Outstanding58,063,900
10 Day Avg. Volume1,310,416
30 Day Avg. Volume770,875
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)348.77
Price to Cash Flow (P/CF)-4.10
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
$25.78Price Target Upside268.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 | ||||
| 51.07M | 171.85M | 194.92M | 157.27M | 134.95M | 60.79M | Total Assets |
| 53.49M | 378.27M | 590.97M | 419.27M | 181.04M | 136.97M | Total Debt |
| 11.48M | 361.58M | 342.02M | 347.84M | 32.55M | 35.82M | Net Debt |
| 10.67M | 354.48M | 331.01M | 247.03M | 22.05M | 32.74M | Total Liabilities |
| 16.50M | 403.25M | 505.29M | 395.49M | 301.79M | 245.99M | Stockholders Equity |
| 36.99M | -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
6.99
Price Trends
8.27
Negative
8.93
Negative
6.60
Positive
Market Momentum
-0.55
Positive
43.40
Neutral
27.03
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 6.99 is below the 20-day moving average (MA) of 7.89, below the 50-day MA of 8.27, and above the 200-day MA of 6.60, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.03 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
48 Neutral | $471.23M | ― | -60.34% | ― | -9.71% | 42.17% | |
48 Neutral | $6.46B | 1.17 | -48.25% | 2.67% | 19.50% | 0.61% | |
48 Neutral | $406.60M | ― | ― | ― | ― | ||
46 Neutral | $410.24M | ― | -44.15% | ― | -60.83% | 14.13% | |
45 Neutral | $373.40M | ― | -207.84% | ― | -14.02% | -72.44% | |
35 Underperform | $390.77M | ― | 87.26% | ― | ― | -43.76% |
* Healthcare Sector Average
Performance Comparison
OMER
Omeros
6.99
3.56
103.79%
ZVRA
Zevra Therapeutics
6.98
2.21
46.33%
RLAY
Relay Therapeutics
2.57
-4.17
-61.87%
DNA
Ginkgo Bioworks Holdings
8.36
-28.18
-77.12%
UPB
Upstream Bio, Inc.
7.58
-15.80
-67.58%
Omeros Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -14.96% | 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.Highlights
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.
Lowlights
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.