UBS analyst Colin Bristow downgraded Omeros to Neutral from Buy with a price target of $2, down from $12, following the recent FDA update regarding the path forward in hematopoietic stem cell transplant-associated thrombotic microangiopathy. The FDA has proposed evaluating narsoplimab’s pivotal trial data versus a historical control group, though the specific efficacy thresholds have not been disclosed by the agency or management, Bristow tells investors in a research note. As such, the analyst lowered narsoplimab’s probability of success in HSCT-TMA to 25% from 50%. In addition, the company’s near-term financing overhang, which will likely not be the only one between now and narsoplimab reaching he market, "compounds the near-term headwinds to investment," says the analyst.
Published first on TheFly
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