Omeros Corporation (OMER) Stock: Headed Up On Earnings

Omeros Corporation (NASDAQ: OMER) is working its way to the top in the pre-market hours this morning after reporting its earnings for the fourth quarter and full 2018 year. Of course, the earnings were positive, exciting investors and pushing the stock up. Today, we’ll talk about:

  • The financial results;
  • what we’re seeing from OMER stock as a result; and
  • what we’ll be watching for ahead.

OMER Reports Q4 And Full Year Earnings

As mentioned above, Omeros Corporation is having a strong start to the trading session this morning after reporting its financial results from the fourth quarter and full year. Here’s what we saw from the report:

Fourth Quarter Results 

  • Revenue – For the fourth quarter, OMER reported revenue in the amount of $22.0 million. All revenue was the result of sales of OMIDRIA. Sales in the same quarter last year came to 13.8 million. Quarter over quarter, sales increased by $17.4 million from Q3, 2018.
  • Net Loss – Net losses for the quarter came in at $23.5 million, working out to $0.48 per share. This included non-cash expenses in the amount of $4.9 million. In the same quarter last year, net losses came in at $16.6 million. The growth in losses is largely attributable to the development of narsoplimib, which the company is working to bring to patients in the US and Europe.

Full Year Results

  • Revenue – Full year revenue came in at $29.9 million, a drop of 5.9% year over year. The decrease in revenue was largely due to a lack of separate payment for OMIDRIA under Medicare Part B from January through September.
  • Net Loss – OMER said that it generated a loss of $126.8 million for the full year. This showed a large growth in losses from the $53.5 million reported last year.

In a statement, Gregory A. Demopulos, M.D., Chairman and CEO at OMER, had the following to offer:

We’re pleased with the record OMIDRIA sales in the fourth quarter, which, together with stronger than historical demand for the product in January and February, form the basis for our expectations of substantial growth through 2019. Adding to our success with OMIDRIA, we have significantly advanced narsoplimab, our MASP-2 inhibitor, toward what we anticipate will be its first in a line of approvals, with our team currently preparing a BLA for stem cell-associated TMA. Behind stem-cell TMA, narsoplimab is in Phase 3 trials for IgA nephropathy and for aHUS, and we anticipate success here as well. OMS527 for addiction is in a Phase 1 clinical program, and our MASP-3 inhibitor, OMS906, and small-molecule inhibitor of MASP-2 are slated to enter the clinic next year. We’ve also expanded our pipeline into immuno-oncology with antagonists against GPR174, a novel target that, based on our animal and ex-vivo human data, increasingly appears to control a critical axis in the treatment of cancers. Across our programs, 2019 looks to be a year of tremendous achievements that we expect will ultimately improve – and save – patients’ lives.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news moves the market. When it comes to Omeros Corporation, the news proved to be positive, for the most part.

While sales were down in 2018, the problem had to do with coverage, and that problem has been solved. As a result, we saw a strong push in the right direction in Q4 and this growth is likely to continue throughout 2019.

So, it’s not surprising to see that excited investors are pushing 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 (8:43), OMER is trading at $15.50 per share after a gain of $1.08 per share or 7.49% 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 narsoplimib as well as the rest of its pipeline through the development process. We’re also watching OMIDRIA sales closely as this is the bread and butter for the company at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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