Omeros Corporation (NASDAQ: OMER) is having a relatively strong start to the trading session this morning, and for good reason. The company announced that it has received Orphan Medicinal Products designation from the European Commission. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The Orphan Medicinal Products designation;
- what we’re seeing from OMER stock as a result; and
- what we’ll be watching for ahead.
OMER Announces Orphan Medicinal Products Designation
As mentioned above, Omeros Corporation is having a strong start to the trading session in the pre-market hours after the company announced that the European Commission has designated OMS721 as an Orphan Medicinal Product in the EU. The designation surrounds the use of OMS721 as a treatment for hematopoietic stem cell transplatnation.
OMER said that the positive news comes following the opinion of the European Medicines Agency’s Committee for Orphan Medical Products that OMS721 should receive this designation. At the moment, there are three Phase 3 development programs surrounding the treatment in each HSCT-associated thrombotic microangiopathy (TMA).
Today’s news represents the second orphan drug designation in Europe surrounding OMS721. The first was provided for the treatment of primary IgA nephropathy. Due to the orphan drug designation, the path toward approval in Europe becomes a shorter one with more assistance from the EMA.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Omeros Corporation, the news proved to be overwhelmingly positive. After all, the orphan drug designation will likely accelerate the path toward European approval. So, it comes as no surprise that the news excited investors, sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:12), OMER is trading at $23.02 per share after a gain of $0.57 per share or 2.54% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OMER. In particular, we’re interested in following the story surrounding the company’s continued work to bring OMS721 to market following this second orphan drug designation announcement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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