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On its current trajectory, Omeros Corporation (NASDAQ: OMER) might be heading into a short squeeze thanks to its high short data. With this in mind, a short squeeze requires a catalyst to help the stock run and OMER stock has no shortage of upcoming catalysts. As we are in the second half of 2023, OMER intends to release trial data regarding 2 treatments this half of the year – one of which is in phase 3 of clinical trials, and its trial data is expected to be released this quarter. Additionally, both treatments have orphan drug designation which is a testament to the uniqueness of OMER’s treatments. For these reasons, OMER stock is one to keep a close eye on this half of the year.
OMER Stock News
As things stand, OMER’s upcoming trial data revelations could potentially lead to major medical breakthroughs. These trial data are related to OMER’s OMS906 treatment for Paroxysmal nocturnal hemoglobinuria (PNH) which is a rare disease and Narsoplimab for the treatment of IgA nephropathy. Narsoplimab is OMER’s most advanced treatment as it is currently in phase 3 of clinical trial and the company expects its trial data to be released this quarter. Meanwhile, OMS906 is in phase 1b of clinical trials and its trial data will be posted this half of the year.
While Narsoplimab is the company’s most advanced treatment, it is also OMER’s most prominent one since it targets a litany of ailments including IgAN, Stem Cell Transplant Associated TMA (TA-TMA), Atypical Hemolytic Uremic Syndrome (aHUS), Covid-19, Lupus Nephritis, and other renal diseases. Given its ability, Narsoplimab received an Orphan Drug Designation for treating IgAN and TA-TMA – both of which are in phase 3 of clinical trials. In addition, Narsoplimab also received Breakthrough Therapy Designation which means that it is eligible for all Fast Track Designation features.
With this in mind, it is worth noting that treatments with Orphan Drug Designation in phase 3 trials have a high approval rate of 66.9%. In this way, Narsoplimab could be more likely to be approved by the FDA if it continues showing positive trial results. On that note, to better understand the treatment’s potential, investors should note how it works.
Cloning tech has been around for quite a while as it is constantly used in the medical industry to develop monoclonal antibody treatments like OMER’s Narsoplimab and OMS906. To create a monoclonal antibody treatment, a specific white blood cell lineage is cloned and introduced into the body to catalyze the immune system. On that note, OMER managed to choose lineages that target a litany of diseases and ailments which is a testament to its capabilities.
OMS906’s trial data concerning its treatment for PHN is set to be released in the second half of 2023. PHN is a non-inherited disorder that leads to impaired blood production, and premature death. As things stand there is only one notable treatment for the condition eculizumab (Soliris). That said, there are no sure indicators that OMS906 will provide better results than Soliris, especially since its trial data results so far only show that it was well tolerated.
IgAN Is a rare disease affecting only about 2.5 out of every 100 thousand adults. IgAN occurs when a germ-fighting protein called immunoglobulin A accumulates in the kidneys, causing inflammation that makes it harder for the kidneys to filter waste from the blood. Having said that, there are two very positive indicators for Narsoplimab treatment of IgAN. The first is its phase two trials and the second is the drug’s efficacy against renal diseases generally.
Narsoplimab has demonstrated its resilience in combating renal diseases like Lupus Nephritis. During that trial, it reduced proteinuria which is urinary protein buildup by an unprecedented 70%. This is extremely promising given the nature of IgAN.
During its phase two IgAN trial Narsoplimab demonstrated surprising efficacy by reducing protein buildup in the kidneys by a median of 64.4%. During the 3-year follow-up period, it became clear that the patients sustained a 38% median reduction in urinary protein buildup which is unprecedented. Keeping that in mind, Narsoplimab trail data is set to be released in the coming quarter which could cause the stock to surge.
OMER’s anticipated trial data come at a perfect time with the stock seeing an increasing short selling activity. Currently, OMER has a short interest of 17.5% and 33% of its float on loan and these figures have been increasing lately. Given that the company’s trial data are expected soon, OMER stock could soar on positive data as short sellers might be forced to cover their positions.
OMER Stock Financials
According to its Q1 2023 report, OMER’s assets decreased QoQ from $590.9 million to $560.1 million and its cash balance also declined from $11 million to $3 million. However, OMER’s short-term investments climbed significantly from $183.9 million to $367.5 million, which combined with its cash balance, are enough for the company to fund its research and trials until 2025. As for liabilities, OMER witnessed a slight increase QoQ from $136 million to $139 million.
In terms of costs, OMER reported a slight YoY increase to $35.7 million from $35 million. As a result, the company’s net loss increased from $33 million to $33.7 million.
@bkfViking123 is watching OMER stock ahead of Narsoplimab’s trial results.
@TomSilver39 is anticipating OMER’s upcoming trial data.
OMER stock was in a bullish trend as it was trading in an upward channel which it recently broke. Looking at the indicators, the stock is trading below the 200, 50, and 21 MAs. Meanwhile, the RSI is approaching oversold at 32 and the MACD is neutral.
As for the fundamentals, OMER has 2 major upcoming catalysts in the anticipated phase 3 trial data of Narsoplimab and the phase 1b trial data of OMS906 this quarter and later this year respectively. Given the increasing short data the stock is witnessing, a short squeeze may occur if OMER posts positive trial data – especially for Narsoplimab as it could be a sign that the treatment could be likely to be approved by the FDA.
OMER Stock Forecast
With trial data coming out this half of the year for Narsoplimab and OMS906, OMER stock is likely to soar as more investors take notice of the company and its pipeline. Considering that OMER is witnessing an increasing short selling activity, the stock could be poised to witness a short squeeze later this year if it releases positive trial data. In light of this, OMER stock could be one of the biotech stocks to watch closely this year.
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