Clinical-stage biotechnology company Omega Therapeutics (NASDAQ:OMGA) skyrocketed in pre-market trading after it announced a research collaboration with healthcare company Novo Nordisk (NVO). As a part of this agreement, the two companies aim to develop a novel epigenomic controller for obesity treatment using Omega’s proprietary platform technology and Novo Nordisk’s cardiometabolic research expertise.
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Under the terms of the agreement, Novo Nordisk will “reimburse R&D costs and has the right to select one target to advance for clinical development. Omega and Pioneering Medicines are eligible to receive up to $532 million in upfront, development and commercial milestone payments, as well as tiered royalties on annual net sales of a licensed product.”
Is Omega a Good Stock to Buy?
Analysts remain bullish about OMGA stock with a Strong Buy consensus rating based on a unanimous three Buys. OMGA stock has dropped by more than 50% over the past year, and the average OMGA price target of $11.33 implies an upside potential of 315% at current levels.
