After Omeros Corporation (NASDAQ:OMER) delivered an impressive second-quarter earnings slam dunk on August 8th, Cantor analyst Elemer Piros is finding himself more on the positive slant of the cautious optimism scale when it comes to this drug maker’s opportunities.
Pinpointing exciting prospects for Omidria, the firm’s cataract and intraocular lens replacement drug, designed to prevent intraoperative miosis and reduce post-operative pain, and appreciating the combined tech value of its pipeline, the analyst reiterates a Neutral rating on OMER while lifting the price target from $15 to $19, which implies a just under 14% downside from current levels. (To watch Piros’ track record, click here)
For the second quarter, the firm outclassed expectation on robust Omridia sales of $17.2 million, compared to Piros’ forecast of $13.5 million and FactSet calling for $14.6 million. As such, the analyst notes, “Based on these results, we have adjusted our model to demonstrate steady linear growth and a new YE17 revenue forecast of $67 million versus $56 million previously,” hiking revenue expectations for Omridia for this year as well as the next.
With regard to pipeline developments, the analyst highlights, “On the call, additional details regarding three Phase 3 programs in atypical hemolytic uremic syndrome (aHUS), immunoglobulin A (IgA) nephropathy, and hematopoietic stem cell transplant-associated thrombotic microangiopathy (HSCT-TMA) were provided. We expect the Phase 3 aHUS study to enroll a single-arm, 40-patient cohort to support potential accelerated approval. An additional 40 patients could support full approval. We note that the Phase 3 programs are subject to ongoing discussions with the FDA.”
“Although we are currently on the sidelines, we believe progress with securing reimbursement ahead of pass-through expiration and the late-stage pipeline could provide catalysts for OMER,” concludes Piros.
TipRanks analytics indicate OMER as a Buy. Based on 3 analysts polled by TipRanks in the last 3 months, 2 rate a Buy on Omeros stock while 1 maintains a Hold. The 12-month average price target stands at $49.50, marking a nearly 133% upside from where the stock is currently trading.