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Omeros Corp (OMER)
NASDAQ:OMER
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Omeros
(NASDAQ:OMER)
40Underperform
Positive Factors
Clinical Results
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.
Product Effectiveness
Narsoplimab is the only product that has shown effectiveness in treating TA-TMA.
Negative Factors
FDA Approval Concerns
Skepticism remains about FDA approval of narsoplimab due to limited clinical data and a lengthy regulatory process.
Financial Challenges
The company is facing financial challenges with cash not providing a runway beyond the second quarter of 2024.
Uncertain Future
The analyst maintains a Hold rating due to the company's uncertain future and urgent funding needs.
Omeros (OMER) vs. S&P 500 (SPY)
Market Cap
$194.53M
Dividend YieldN/A
Average Volume (3M)1.13M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue GrowthN/A
EPS Growth-43.76%
CountryUS
Employees202
SectorHealthcare
Sector Strength43
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.58
Shares Outstanding58,592,514
10 Day Avg. Volume1,951,695
30 Day Avg. Volume1,130,415
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)-0.87
Price to Sales (P/S)0.00
P/FCF Ratio-1.31
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue83.95
Enterprise Value/Gross Profit-1.44K
Enterprise Value/Ebitda-0.46
Forecast
1Y Price Target
$45.00Price Target Upside1267.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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.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 | ||||
| 412.00K | 0.00 | 0.00 | 0.00 | 0.00 | 73.81M | Gross Profit |
| -208.00K | 0.00 | -69.78M | -952.00K | -1.39M | 72.91M | EBIT |
| -165.19M | -169.26M | -164.53M | -163.39M | -173.62M | -110.60M | EBITDA |
| -156.56M | -157.00M | -163.61M | -162.44M | -172.23M | -168.02M | Net Income Common Stockholders |
| -153.09M | -156.81M | -117.81M | 28.78M | 194.24M | -138.06M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 52.41M | 90.13M | 171.85M | 194.92M | 157.27M | 134.95M | Total Assets |
| 235.16M | 277.08M | 378.27M | 590.97M | 419.27M | 181.04M | Total Debt |
| 115.32M | 207.02M | 361.58M | 342.02M | 347.84M | 32.55M | Net Debt |
| 111.06M | 203.62M | 354.48M | 331.01M | 247.03M | 22.05M | Total Liabilities |
| 448.71M | 459.69M | 403.25M | 505.29M | 395.49M | 301.79M | Stockholders Equity |
| -213.55M | -182.61M | -24.98M | 85.68M | 23.78M | -872.67M |
| Cash Flow | Free Cash Flow | ||||
| -143.01M | -148.97M | 74.30M | -86.60M | -110.00M | -100.37M | Operating Cash Flow |
| -142.86M | -148.80M | 74.73M | -86.48M | -109.72M | -100.09M | Investing Cash Flow |
| 182.68M | 82.22M | 27.45M | -127.56M | 193.71M | -67.03M | Financing Cash Flow |
| -37.39M | 62.88M | -106.08M | 124.25M | 6.32M | 174.53M |
Omeros Technical Analysis
Negative
3.29
Price Trends
6.96
Negative
8.01
Negative
6.77
Negative
Market Momentum
-1.05
Positive
24.58
Positive
8.22
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 3.29 is below the 20-day moving average (MA) of 5.78, below the 50-day MA of 6.96, and below the 200-day MA of 6.77, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 24.58 is Positive, neither overbought nor oversold. The STOCH value of 8.22 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 |
|---|---|---|---|---|---|---|---|
54 Neutral | $487.20M | ― | -204.78% | ― | 44.92% | -40.06% | |
54 Neutral | $473.52M | ― | -57.76% | ― | 13.76% | 48.34% | |
52 Neutral | $5.19B | 3.04 | -44.20% | 2.82% | 16.59% | -0.39% | |
48 Neutral | $486.83M | ― | ― | ― | ― | ||
46 Neutral | $502.33M | ― | -45.46% | ― | -78.26% | 15.41% | |
40 Underperform | $194.53M | ― | 87.26% | ― | ― | -43.76% |
* Healthcare Sector Average
Performance Comparison
OMER
Omeros
3.29
-0.07
-2.08%
ZVRA
Zevra Therapeutics
8.61
3.99
86.36%
RLAY
Relay Therapeutics
3.05
-4.51
-59.66%
DNA
Ginkgo Bioworks Holdings
7.99
-21.26
-72.68%
UPB
Upstream Bio, Inc.
9.13
-14.25
-60.95%
SION
Sionna Therapeutics, Inc.
14.51
-7.73
-34.76%
Omeros Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -16.71%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautious optimism. While there are significant positive developments, particularly with debt restructuring and progress toward narsoplimab approval, the increase in net loss, decline in OMIDRIA sales, and pausing of certain clinical programs present notable challenges.Q1-2025 Updates
Positive Updates
Debt Restructuring and Financial Flexibility
Omeros announced an exchange agreement reducing their outstanding debt by $10 million and lowering near-term repayment obligations by over $100 million, extending debt maturity to 2029. This improves financial flexibility and strengthens the balance sheet.
Narsoplimab Approval Progress
FDA accepted the resubmitted BLA for narsoplimab for TA-TMA, assigning a target action date of September 25th. Narsoplimab is positioned as the first approved treatment for TA-TMA and represents a nearly $1 billion annual market opportunity.
Strong Market Potential for Zalutenibart
The ongoing clinical trial for zaltenibart in PNH indicates potential for significant market share in a growing PNH treatment market, projected to be over $10 billion by 2032.
OMIDRIA Royalties
OMIDRIA royalties for the first quarter totaled $6.7 million based on net sales of $22.3 million, highlighting ongoing revenue from this product.
Negative Updates
Increased Net Loss
Net loss for the first quarter of 2025 was $33.5 million, an increase from the previous quarter's net loss of $31.4 million.
OMIDRIA Sales Decline
OMIDRIA net sales decreased by $11.3 million from the fourth quarter of last year, with a corresponding $3.4 million decline in royalties.
Paused Clinical Programs
Due to capital constraints, the Phase III zaltenibart program in PNH has been temporarily paused, potentially impacting future timelines.
Company Guidance
During the earnings call for Omeros Corporation, the company provided guidance on its financial and strategic positioning for the first quarter of fiscal year 2025. The net loss for the quarter was reported at $33.5 million, or $0.58 per share, compared to a $31.4 million loss, or $0.54 per share, in the previous quarter. As of March 31, 2025, Omeros held $52.5 million in cash and investments. The company announced a debt restructuring agreement, exchanging $71 million in 2026 convertible notes for new 9.5% convertible senior notes due in 2029, and converting $10 million of the 2026 notes into equity. This reduced their total debt by $10 million and lowered near-term repayment obligations from $118 million to $17 million. Omeros highlighted ongoing efforts to secure additional capital to support operations, particularly the anticipated approval and launch of narsoplimab for the treatment of TA-TMA, with a target FDA action date of September 25, 2025. The company is also progressing on its marketing authorization application for narsoplimab with European regulators and continuing its development programs for zaltenibart, a treatment for PNH, and the PDE7 inhibitor program for cocaine use disorder.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.