Bank of America Securities analyst Greg Harrison reiterated a Sell rating on Omeros (OMER – Research Report) today and set a price target of $0.50.
Greg Harrison’s sell rating on Omeros is due to a combination of factors related to its recent clinical trials and financial standing. Omeros’ phase 3 ARTEMIS-IGAN trial of narsoplimab, targeted at IgA nephropathy (IgAN), failed to reach statistical significance, leading to the discontinuation of the trial. This was not unexpected as the phase 2 results were mixed, but it still represents a setback for the company. It should be noted that the trial experienced an unusually high response from the placebo group, which set a high benchmark for the narsoplimab arm.
However, Greg Harrison doesn’t see this failure impacting the progress of the transplant-associated thrombotic microangiopathy (TA-TMA) program. The program is on schedule for resubmission and a potential decision by next summer. While the data for the TA-TMA could justify approval, Harrison remains cautious due to the uncertain regulatory path. Given the failure of the IgAN trial, which was a significant part of Omeros’ valuation, Harrison reiterates his Underperform rating and has adjusted the price objective to $0.50, down from $4. He has also removed the IgAN indication from his model and adjusted the net cash value to reflect anticipated net cash in 1 year.
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Omeros (OMER) Company Description:
Omeros Corp. operates as a biopharmaceutical company. It engages in the discovery, development, and commercializes of both small-molecule and protein therapeutics for large market. It also offers orphan indications targeting inflammation, coagulopathies, and disorders of the central nervous system. The company was founded by Gregory A. Demopulos and Pamela Pierce Palmer on June 16, 1994 and is headquartered in Seattle, WA.
