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Omeros' Pipeline Starting To Get The Recognition It Deserves


  • Omeros rallied more than 30% in June as the market finally started to give the pipeline some recognition.
  • Art Doyle short report is full of false claims and the main two claims have been negated in the meantime. The two-part short report has since disappeared.
  • IgA nephropathy data de-risk OMS721 away from aHUS.

Omeros' (NASDAQ:NASDAQ:OMER) valuation has been depressed for quite some time despite Omidria sales growing and, more importantly, the pipeline making significant progress. The stock rallied more than 30% in June and the market seems to be waking up to OMS721's potential. OMS721 is targeting several orphan indications, two of which (and maybe even three) should be in phase 3 trials before the year is over. Omeros remains one of my highest conviction holdings and the stock is trading around the levels I thought were attractive two years ago with a less advanced pipeline.

Art Doyle Research short report

Before talking about the recent fundamental developments, I want to address the short report that was published by Art Doyle Research. I wrote a detailed rebuttal of the two-part short report - the articles are available to Growth Stock Forum subscribers - part 1 and part 2, and I will address what I believe were two key accusations (both of which have since been negated):

- Claim that the phase 3 aHUS trial of OMS721 didn't even start - the claim was supported by the fact that the trial was not posted on ClinicalTrials.gov. The protocol has been posted in the meantime and shows that the trial has been active since February 2017.

- Claim that OMS721 will only be administered intravenously and not subcutaneously. The above-linked protocol contains the following information about administration (emphasis added): "Intravenous loading dose followed by daily subcutaneous injections" which effectively killed that point as well.

I noted these two claims as two main concerns from the report that relate to fraud or misleading investors in my articles and both concerns are now gone. Art Doyle did note some legitimate risks - like Omidria's pass-through status expiring in January 2018 and generic threats, but these are business risks and have nothing

This article was written by

ONeil Trader profile picture
Discovering growth and biotech stocks with significant upside potential
Former stockbroker, now an independent analyst/writer on Seeking Alpha and founder and editor of the Growth Stock Forum. Focusing on growth and biotech stocks. Looking for substantial sales and earnings growth potential and seeking the best risk-adjusted returns from my stock selection.

My articles represent my personal opinion and analysis and should not be regarded as investment advice in any way. Readers and subscribers should do their own due diligence and/or consult their financial advisor before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

Exclusive research: http://seekingalpha.com/author/oneil-trader/research

Analyst’s Disclosure: I am/we are long OMER. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may initiate a long position in CCXI over the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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