Why Did Omeros Corporation (OMER) Shares Just Pop?


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Drug maker Omeros Corporation (NASDAQ:OMER) announced that it entered into a settlement agreement with Par Pharmaceutical and its subsidiary Par Sterile Products, resolving Omeros’ patent litigation against Par. The litigation concerned Par’s filing of an Abbreviated New Drug Application (ANDA) seeking approval from the FDA to market a generic version of Omeros’ commercial drug OMIDRIA® (phenylephrine and ketorolac injection) 1% / 0.3%. In the settlement, Par, which had previously stipulated to infringement, acknowledges and confirms the validity of all asserted patents for OMIDRIA. The settlement includes a consent judgment filed with the U.S. District Court for the District of Delaware. Unless subsequently authorized pursuant to terms in the settlement agreement, Par will be prohibited by the judgment from launching a generic version of OMIDRIA until April 1, 2032. The last-to-expire of Omeros’ Orange Book listed patents for OMIDRIA expires on October 23, 2033. As part of the settlement agreement, if and when Par eventually enters the market, Par will pay to Omeros a royalty of 15 percent of Par’s net sales of any generic version of OMIDRIA until the latest expiration of Omeros’ U.S. Patents related to OMIDRIA.

Investors are clearly pleased with the settlement, bidding up the stock 6% to $23.56. OMER has a 1-year high of $27.09 and a 1-year low of $7.20. The stock’s 50-day moving average is $21.01 and its 200-day moving average is $18.92.

Omeros CEO Gregory A. Demopulos commented, “We are pleased with this settlement and what it represents to our company and its shareholders […] “The settlement affirms our belief in the strength of our patents for OMIDRIA. Sales of OMIDRIA continue to grow as more and more facilities and surgeons incorporate the product into their cataract surgery routines, improving postoperative outcomes for their patients.”

On the ratings front, Omeros has been the subject of a number of recent research reports. In a report issued on August 24, Cantor analyst Elemer Piros reiterated a Hold rating on OMER. On the other hand, on August 11, Needham’s Serge Belanger reiterated a Buy rating on the stock and has a price target of $28.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Elemer Piros and Serge Belanger have a yearly average return of 6.1% and 3.6% respectively. Piros has a success rate of 51% and is ranked #1101 out of 4699 analysts, while Belanger has a success rate of 44% and is ranked #1932.

Omeros operates as a biopharmaceutical company committed to discovering, developing, and commercializing small-molecule and protein therapeutics for large market as well as orphan indications targeting inflammation, coagulopathies and disorders of the central nervous system.