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Why Omeros Stock Rose Last Week

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Apr. 11 2018, Published 10:27 a.m. ET

Stock price

On April 2, 2018, Omeros (OMER) stock opened at $11.12. It grew ~22% over the week to close at $13.58 on April 6. Its 52-week low was $8.36 on March 2, 2018.

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Reasons for the stock price increase

In December 2017, the FDA approved Omeros’s supplemental new drug application for expanding the use of Omidria for pediatric use. Omidria prevents intraoperative miosis and also reduces post-operative pain for individuals undergoing cataract surgery and intraocular lens replacement. The label expansion of Omidria is expected to boost the drug’s revenue.

In January 2018, the European Medicines Agency’s Committee for Orphan Medicinal Products responded positively to Omeros’s application for orphan drug status for OMS721 for the treatment of primary immunoglobulin A nephropathy.

In February 2017, Omeros announced the results of its ongoing Phase 2 trial to evaluate the safety and efficacy of OMS721 in individuals with HCT-TMA (hematopoietic stem cell transplant-associated thrombotic microangiopathy). OMS7321 demonstrated an increase in median overall survival in the trial.

In fiscal 2017, Omeros reported net revenue of $64.8 million, reflecting ~56.4% year-over-year growth. It saw a net loss of $53.5 million and a net loss per share of $1.17.

Analysts’ recommendations for Omeros and peers

Of the five analysts tracking Omeros in April 2018, one has recommended “strong buy,” two have recommended “buy,” and two have recommended “hold.” On April 9, 2018, Omeros had a 12-month target price of $36.20, which represents a ~179.1% return.

Of the nine analysts tracking Agios Pharmaceuticals (AGIO) in April 2018, ~78% have recommended “buy” or some equivalent. On April 9, 2018, Agios had a 12-month target price of $86.13, which represents a ~7.7% return.

Of the 20 analysts tracking bluebird bio (BLUE) in April 2018, ~60% have recommended “buy” or some equivalent. On April 9, 2018, bluebird bio had a 12-month target price of $222.35, which represents a ~28.3% return.

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