Omeros Corporation (OMER) Wows Investors with Strong Revenue Growth, But Elemer Piros Stays on the Sidelines

Cantor's Elemer Piros waits for pass-through reimbursement to be address, before joining the 'Omeros party'.


Brace yourself. Omeros Corporation (NASDAQ:OMER) is on the move. The drug maker’s stock price has spiked dramatically, after reporting better-than-expected sales from its cataract drug OMIDRIA ($21.66 million versus consensus estimates of $17.8 million).

Omeros CEO stated, “OMIDRIA revenues sustained their strong growth in the third quarter and this momentum continues into the current quarter […] We have also made substantial progress across our OMS721 programs – in addition to our Phase 3 aHUS program, we have a clear roadmap for the Phase 3 IgA nephropathy trial, including FDA confirmation of proteinuria as the primary efficacy endpoint, and compelling data to support our advancing to a Phase 3 program in stem cell transplant-associated TMA. Further adding to our clinical pipeline, OMS527, our PDE7 inhibitor for the treatment of addictions and compulsive disorders, is on track to enter Phase 1 in the first half of next year.”

Cantor analyst Elemer Piros commented, “Based on these results, we have adjusted our model to demonstrate steady linear growth and increased 2017 revenue forecast of $74 million versus $67 million previously. However, we remain on the sidelines, as focus on signs of progress with securing reimbursement ahead of pass-through expiration (January 2018) and the advancement with the late-stage pipeline.”

“Investor focus has remained on the ability of the company to delay or adequately address expiration of pass-through reimbursement. Omeros continues to pursue both legislative and administrative pathway. In light of the uncertainty, we have lowered our 2018 revenue estimate to $97 million from $106 million,” the analyst added.

As such, Piros reiterates a Neutral rating on Omeros shares, with a price target of $19, which represents a slight upside potential from current levels. (To watch Piros’ track record, click here)

Most of the Street is far more confident than Piros’ sidelined stance, with TipRanks analytics showcasing OMER as a Strong Buy. Based on 7 analysts polled in the last 12 months, 6 rate a Buy on Omeros stock while only Piros rates the stock a Neutral. With a return potential of 104%, the stock’s consensus target price stands at $37.17.