Omeros (OMER) Stock Is Down: Why Bulls Don’t Mind

Omeros Corporation (NASDAQ: OMER)

Omeros had an absolutely incredible day in the market yesterday; gaining more than 77% in morning trading after releasing phase 2 study data. However, today the story has changed and OMER is riding the downtrend. Nonetheless, if you’re an OMER bull, chances are that you’re not concerned. Nonetheless, if this is concerning, I plan to put those concerns to rest. Today, we’ll talk about the phase 2 data that was released yesterday, what we’re seeing in the market today and why, as well as what we can expect to see from OMER moving forward.

Omeros Announces Positive Phase 2 Data

Yesterday, Omeros announced phase 2 study data from its thrombotic microangiopathies treatment candidate; and the data proved to be overwhelmingly positive. The candidate OMS-721 proved not only to be effective, but well tolerated in treating a rare group of life-threatening clotting disorders. In the study, OMER found that two patients demonstrated a 47% increase in mean platelet count as well as an 86% decrease in red blood cell fragmentation.

What We’re Seeing In The Market Today

Although there hasn’t been any bad news about OMER that’s been released today, we are seeing declines on the stock. Currently (1:14), OMER is trading at $22.71 per share after a loss of 9.27%. However, those who are bulls on the stock really aren’t concerned about today’s declines. That’s because what we’re seeing is nothing more than normal market movement.

The reality is that price movements in the market, especially in the biotech market, tend to happen through a series of overreactions. When positive news is released from a company, as was the case from Omeros Corporation yesterday, the stock tends to climb higher than it should as investors overreact to the news. Following the climbs, a correction generally happens; bringing the stock down to a more sustainable rate before growth can continue. That’s exactly what we’re seeing today. After the positive data was released yesterday, investors fueled by excitement drove OMER up by more than 70%. Unfortunately, gains that massive simply aren’t sustainable. Therefore, we’re seeing a correction today.

What We Can Expect To See Moving Forward

I have a relatively positive opinion of what we can expect to see from OMER moving forward. While we are seeing declines today, I believe that those declines are presenting a strong buying opportunity as we’re likely to see slow and steady gains following this correction. The reality is that Omeros produced incredibly positive data from Phase 2 testing. That means that phase 3 data is likely to be positive and that we’re likely to see an NDA out of the company relatively soon. All in all, I believe that Omeros is on the right path and that investors are likely to continue pushing the stock up.

What Do You Think?

Where do you think OMER is headed and why? Let us know in the comments below!

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1 thought on “Omeros (OMER) Stock Is Down: Why Bulls Don’t Mind”

  1. The biggest news is the guy in the high dose cohort despite being coinfected with HepC AND having leukemia recovered so much he got off dialysis and remained off through the time of press release.


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