Omeros Corporation (NASDAQ:OMER) shares are on the rise after the drug maker announced that OMS721 has been granted FDA breakthrough therapy designation for the treatment of Immunoglobulin A nephropathy (IgAN). There are currently no approved therapies for IgAN. Omeros is preparing to move OMS721 into a pivotal phase 3 program.

In reaction, WBB Securities analyst Stephen Brozak reiterates a Strong Buy rating on OMER, with a price target of $75, which implies an upside of 284% from current levels.

Brozak commented, “There is an ongoing Phase III trial of OMS721 in aHUS. The currently favored aHUS treatment is Alexion Pharmaceuticals’ (NASDAQ:ALXN) Soliris, making OMS721 a clear and potentially powerful threat to the almost $3 billion Soliris revenue stream, which is derived from treatment of aHUS and Paroxysmal Nocturnal Hemoglobinuria (PNH).”

“The IgAN population is a multiple of the aHUS population. In our opinion, we believe that a treatment price of $100,000 is well within the pharmacoeconomic tolerance of the insurance companies. This raises an issue in a cost-conscious drug environment that we believe will only become more problematic. With this careful reflection, this is one area where off-label use must be taken as a serious consideration. We believe OMS721 could potentially become a global treatment for proteinuria, opening a huge market for this drug,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Stephen Brozak has a yearly average return of 14.5% and a 50% success rate. Brozak has a 80.9% average return when recommending OMER, and is ranked #809 out of 4567 analysts.

Out of the 5 analysts polled in the past 12 months, 4 rate Omeros stock a Buy, while 1 rates the stock a Hold. With a return potential of 105%, the stock’s consensus target price stands at $40.