Omeros Corporation ($OMER) is a biopharma company which is engaged in developing small molecule and protein therapeutics for different conditions. The company emerges as a strong investment target with its diverse drug pipeline. Once the company’s strong performance in these trials is factored in, the stock becomes even more attractive option. Currently, the company has four drug candidates in clinical drug stage with various other in preclinical programs. Its OMS721 for treating Atypical Hemolytic Uremic Syndrome is already in the Phase 3 stage. The drug is also being tested for treating IgA Nephropathy and other renal diseases, for which it is in the Phase 2 stage. For this indication, OMS721 recently received the breakthrough therapy designation from the FDA. The designation is expected to expedite the development of the drug through several incentives such as priority review and the FDA guidance. The US market for IgA nephropathy is estimated to be close to 180,000 patients. The successful development of the treatment may provide Omeros with a potential blockbuster. For Phase II, the drug had shown significant improvements in urine protein levels which is associated with slowing progression of the loss of kidney function and better prognoses.

Source: http://www.omeros.com/

Source: http://www.omeros.com/

The company stock has shown strong movements in the recent past. It gained close to 150 percent this year so far while its 12 months gain stands at 141 percent. With its steep run up, the stock is expected to show some pullback in the near future. Any such dip may be used of building a medium to long term position in the stock. The stock is especially recommended for the investors with moderate risk appetite and long term perspective.

Risks

The company has multiple drugs in its pipeline, which means that the company needs to have high level of liquidity to ensure that the development work is carried out without any hindrance. The company recently announced its net loss for the first quarter at $15.1 million. It currently has only one commercial drug, Omidria in the market, resulting in $12.3 million in revenue for the quarter. While the drug has shown strong potential, the company may be required to shore up funding from other sources for carrying out its R&D activities.

Catalysts

The company has several catalysts coming up as it progresses with the testing of its lead drug candidates. The company’s main product OMS721 in the Phase 3. Any positive news on this front will help propel the stock further. However, the stock is mainly recommended for long term holding.

Management

Gregory A. Demopulos,M.D.
Chairman and Chief Executive Officer

Gregory A. Demopulos, M.D. founded the company and has served as the president, chief executive officer and chairman of the board of directors since June 1994. Prior to founding Omeros, Dr. Demopulos completed his residency in orthopedic surgery at Stanford University and his fellowship training in hand and microvascular surgery at Duke University.

Leonard M. Blum
Chief Business and Commercial Officer


Leonard M. Blum joined Omeros as chief business and commercial officer in April 2016. Mr. Blum brings over 28 years of executive and management experience in the pharmaceutical industry. Mr. Blum served as senior vice president, chief commercial officer from 2007 until March 2016 at Theravance, Inc.

Investment strategy

Entry - Current price point and at any dip

Profit Point – Long term holding

Hold duration – Long Term

Price Target (consensus) - $36.67

Exit (Partial) - $30.5

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