Maxim Reaffirms Buy On Omeros Ahead Of 2Q14 Results, Sees 73% Upside


Maxim Group analyst Jason Kolbert provided an optimistic view on Omeros Corp. (OMER) heading into the company’s second-quarter earnings report, where it is also expected that the company will provide an update on the launch plans for Omidria. In a report issued yesterday, the analyst reaffirmed a Buy rating on shares with a $24 price target, which represents a potential upside of 73% from where the stock is currently trading.

The following bullets contain some highlights from that report:  

  • Omidria has been approved. We currently assume OMS302 (intraocular lens replacement surgery) will see a full launch in 4Q2014, with some sales beginning in 3Q2014. Our valuation parameters still point to a $24.00 per share target price. We look for an update when the company reports the quarter, (we assume later this week).
  • We believe global sales could reach north of $300 million by 2017 for OMS302. In fact, we may see expansion beyond refractive lens exchange (RLE) to other procedures, such as vitrectomy (surgical procedure). Over 600,000 vitrectomies were performed last year worldwide. We have not factored this into our model. We see substantial upside possible with this product, which should now be in a position to generate free cash flow to Omeros and help the company drive its exciting early stage PI/II clinical assets forward. In particular, we are excited for the (MASP-2) and (PDE10) programs.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 6.1% and a 56.2% success rate. Kolbert has a 17.7% average return when recommending OMER, and is ranked #618 out of 3205 analysts.

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