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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
$284.47M
Dividend YieldN/A
Average Volume (3M)945.77K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue GrowthN/A
EPS Growth10.15%
CountryUS
Employees202
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.43
Shares Outstanding68,055,824
10 Day Avg. Volume844,863
30 Day Avg. Volume945,770
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.86
Enterprise Value/Revenue1.28K
Enterprise Value/Gross Profit-728.68
Enterprise Value/Ebitda-4.18
Forecast
1Y Price Target
$9.00Price Target Upside115.31% 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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a mostly positive outlook, with significant progress in financial restructuring and regulatory advancements for narsoplimab, despite some delays and decreased income from certain operations.Q2-2025 Updates
Positive Updates
Reduction in Net Loss
Omeros reported a reduced net loss for Q2 2025 of $25.4 million, down from $33.5 million in Q1 2025.
Debt Maturity Extension
The company successfully extended its debt maturity profile by reducing the outstanding principal on its 2026 notes from $98 million to $17 million and eliminating a $20 million mandatory prepayment.
Funding and Capital Raising
Omeros raised $20.6 million through a registered direct offering, strengthening its cash position.
Narsoplimab Approval Progress
The FDA accepted the resubmission of the Biologics License Application for narsoplimab, with a revised PDUFA date set for December 26, 2025.
European Regulatory Progress
The Marketing Authorization Application for narsoplimab in TA-TMA was submitted and validated by the European Medicines Agency.
Positive Physician Feedback
Physicians have shown significant interest in narsoplimab, reflecting a strong demand for the treatment upon potential approval.
Negative Updates
PDUFA Date Extension
The FDA extended the PDUFA date for narsoplimab to December 26, 2025, following a request for additional analyses.
Decrease in Income from Discontinued Operations
Income from discontinued operations decreased by $3.6 million due to a remeasurement adjustment related to Rayner's downward revision of its forecast for U.S.-based royalties.
Delay in Phase III Program for Zaltenibart
The Phase III program for the MASP-3 inhibitor Zaltenibart was paused to prioritize narsoplimab approval and market launch.
Company Guidance
During the earnings call for Omeros Corporation, the company provided several key financial metrics and updates on its development programs. For the second quarter of 2025, Omeros reported a net loss of $25.4 million, or $0.43 per share, which improved from a net loss of $33.5 million, or $0.58 per share, in the first quarter of the same year. As of June 30, 2025, the company held $28.7 million in cash and investments, which was bolstered by a $20.6 million capital raise from a registered direct offering in July. The company also significantly reduced its debt, bringing down the outstanding principal on its 2026 notes from $98 million to $17 million and extending most of its debt maturities to 2029. Omeros is preparing for the anticipated approval and launch of narsoplimab, aiming for FDA approval by December 26, 2025, with potential label discussions starting in October 2025. Additionally, the company has submitted a marketing authorization application for narsoplimab to the European Medicines Agency, expecting a decision by mid-2026. Omeros is also in advanced discussions for a multibillion-dollar transaction related to its clinical assets, which could provide upfront cash sufficient to cover over 12 months of operations post-closing.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 | -726.00K | -950.00K | -69.78M | -952.00K | -1.39M | 72.91M |
| EBITDA | -126.53M | -157.00M | -163.61M | -162.44M | -172.23M | -168.02M |
| Net Income | -122.47M | -156.81M | -117.81M | 28.78M | 194.24M | -138.06M |
Balance Sheet | ||||||
| Total Assets | 200.57M | 277.08M | 378.27M | 590.97M | 419.27M | 181.04M |
| Cash, Cash Equivalents and Short-Term Investments | 28.74M | 90.13M | 171.85M | 194.92M | 157.27M | 134.95M |
| Total Debt | 184.33M | 207.02M | 361.58M | 342.02M | 347.84M | 32.55M |
| Total Liabilities | 429.25M | 459.69M | 403.25M | 505.29M | 395.49M | 301.79M |
| Stockholders Equity | -228.69M | -182.61M | -24.98M | 85.68M | 23.78M | -872.67M |
Cash Flow | ||||||
| Free Cash Flow | -118.90M | -148.97M | 74.30M | -86.60M | -110.00M | -100.37M |
| Operating Cash Flow | -118.82M | -148.80M | 74.73M | -86.48M | -109.72M | -100.09M |
| Investing Cash Flow | 130.83M | 82.22M | 27.45M | -127.56M | 193.71M | -67.03M |
| Financing Cash Flow | -12.23M | 62.88M | -106.08M | 124.25M | 6.32M | 174.53M |
Omeros Technical Analysis
Positive
4.18
Price Trends
4.03
Positive
4.00
Positive
6.36
Negative
Market Momentum
0.02
Positive
51.40
Neutral
56.67
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 4.18 is below the 20-day moving average (MA) of 4.22, above the 50-day MA of 4.03, and below the 200-day MA of 6.36, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | 883.04M | -7.99 | -13.37% | ― | 0.00% | 0.00% | |
55 Neutral | 803.44M | -2.39 | -43.42% | ― | -76.27% | 22.77% | |
53 Neutral | 430.56M | -140.99 | 2.26% | ― | 158.57% | 96.76% | |
50 Neutral | 673.10M | -1.94 | -51.42% | ― | 25.21% | 67.53% | |
40 Underperform | $284.47M | ― | 87.26% | ― | ― | 10.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
OMER
Omeros
4.18
0.41
10.88%
ZVRA
Zevra Therapeutics
7.67
0.09
1.19%
RLAY
Relay Therapeutics
4.66
-2.77
-37.28%
DNA
Ginkgo Bioworks Holdings
11.37
3.54
45.21%
UPB
Upstream Bio, Inc.
16.38
-7.00
-29.94%
SION
Sionna Therapeutics, Inc.
23.14
0.90
4.05%
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.