Omeros Corporation (OMER): Analyst Believes HSCT-TMA Drug Poised to Become Primary Value Driver


Omeros Corporation (NASDAQ:OMER) lead drug OMS721 is making clinical strides- and a bull is taking notice.

Notably, patients in an ongoing Phase 2 trial experienced better overall survival in hematopoietic stem cell transplant-associated thrombotic microangiopathy (HSCT-TMA) after taking OMER’s treatment.

On back of the successful data that offers a first glance of meaningful survival advantage for OMS721 in HSCT-TMA patients, H.C. Wainwright analyst Ram Selvaraju, commends the biotech player’s compelling asset.

As such, the analyst maintains a Buy rating on OMER stock with a $30 price target, which implies a 172% upside from where the shares last closed. (To watch Selvaraju’s track record, click here)

“Consistent with the survival data, updated assessments of platelet count, lactate dehydrogenase (LDH) and haptoglobin—all markers of TMA activity—continue to show clinically meaningful and statistically significant improvements in the HSCT-TMA patients treated with OMS721,” underscores Selvaraju.

Moreover, Selvaraju cheers for a drug that could become the lead match to light Omeros’ valuation up: “In our view, the more than 16x increase in survival vs. historical controls underscores the potential benefit achievable in the HSCT-TMA setting with OMS721 treatment. […] In our view, OMS721 could become the primary value driver for Omeros, which is on track to initiate a Phase 3 trial in stem cellTMA in 1H18 pending discussion with regulatory authorities.”

Worthy of note, this drug has already garnered a Breakthrough Therapy Designation (BTD) from the FDA along with an Orphan Drug Designation (ODD) in Ig-associated nephropathy (IgAN).

Bottom line, “Overall median survival demonstrated greater than 16-fold improvement in survival in the OMS721-treated group (p < 0.0001),” and Selvaraju believes this drug maker is one to watch- from the bullish camp.

TipRanks reveals strong bullish early sentiment hovering around OMER shares. All 3 analysts polled in the last 3 months are bullish on the biotech stock. With a whopping return potential of nearly 206%, the stock’s consensus target price stands at $33.67.

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