Omeros Corporation (NASDAQ:OMER) announced that it has completed the initial funding under its senior secured credit facility with affiliates ofCRG LP, a healthcare-focused investment firm, consisting of an $80 million term loan. The company used approximately $76 million of the loan proceeds to repay its obligations under its previous credit facility and the remaining net proceeds will be used for general corporate purposes and working capital. With more favorable overall financial terms than the company’s previous credit facility, the CRG secured credit facility has a six-year term with at least four years of interest-only payments, which can be extended to maturity by meeting one of two pre-specified milestones. The restricted cash covenants of the new credit facility are significantly reduced from those of the previous facility, with Omeros now required to maintain no more than$5 million in cash and cash equivalents during the full term of the facility. With its initial draw of the CRG loan, together with funds on hand and current annualized OMIDRIA revenues and expenses, Omeros anticipates that it has at least 12 months of operating capital. By satisfying either revenue or market capitalization milestones, Omeros also has the option of drawing up to an additional $25 million through September 19, 2017 and up to an additional $20 million throughMarch 21, 2018. (Original Source)
Shares of Omeros are currently trading at $9.31, up $0.25 or 2.76%. OMER has a 1-year high of $16.80 and a 1-year low of $7.20. The stock’s 50-day moving average is $10.02 and its 200-day moving average is $11.23.
On the ratings front, Omeros has been the subject of a number of recent research reports. In a report issued on November 2, Maxim analyst Jason Kolbert reiterated a Buy rating on OMER, with a price target of $19, which represents a potential upside of 110% from where the stock is currently trading. Separately, on the same day, FBR’s Thomas Yip reiterated a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Thomas Yip have a yearly average loss of -18.9% and -31.3% respectively. Kolbert has a success rate of 23% and is ranked #4018 out of 4164 analysts, while Yip has a success rate of 16% and is ranked #3996.
Overall, 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $65.50 which is 623.0% above where the stock closed yesterday.
Omeros Corp. engages in the development and commercialization of small-molecule and protein therapeutics for large-market as well as orphan indications targeting inflammation, coagulopathies, and disorders of the central nervous system. Its products are derived from its proprietary PharmacoSurgery platform designed to improve clinical outcomes of patients undergoing arthroscopic, ophthalmological, urological, and other surgical and medical procedures.