Omeros: We See Potential Upside In Transitional Pass-Through Reimbursement Of Omidria, Says MLV


MLV analyst George Zavoico assigned a Buy rating on Omeros (NASDAQ:OMER) with a $19 price target, as the company announced that the Center for Medicare & Medicaid Services (CMS) granted a transitional pass-through status for reimbursement of Omidria™ for the prevention of intraoperative miosis (pupil constriction) and reduction of postoperative pain in cataract surgery or intraocular lens replacement (ILR) procedures.

Zavoico wrote, “The transitional pass-through status will provide Omidria with a temporary Healthcare Common Procedure Coding System (HCPCS) code on January 1, 2015, allowing procedure providers to obtain separate reimbursement of Omidria from Medicare and other third-party payers. Omeros guides to reimbursement of about $400-500 per vial, which is Omeros’ proposed wholesale acquisition cost (WAC) range. While we had already modeled pass-through status in our revenue projections, we see potential upside given that we projected a WAC near the lower end of that range, which is partially offset by a launch delay of about a quarter and higher expenses due to expansion in the Omidria sales force.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst George Zavoico has a total average return of 4.2% and a 43.5% success rate. Zavoico has a 156.8% average return when recommending OMER, and is ranked #1390 out of 3354 analysts.

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