Omeros Corporation (NASDAQ:OMER) Technically Stronger By the Day


A string of recent positive news has pushed Omeros Corporation (NASDAQ:OMER) higher and off the low it touched last month.

The stock closed Friday at $9.72, up 7.28%, on volume of 866.90K shares.

Omeros is a biopharmaceutical company developing therapies for inflammation, coagulopathies and disorders of the central nervous system.

Technically, on the daily chart, the stock is in an uptrend and making higher lows and higher highs. On Friday, it tested the 50-day moving average, though it failed to close above it. However, it did manage to close above $9.50, a long term support line that should have acted as a resistance but did not.

Omeros Corporation (NASDAQ:OMER) – good news on its drug pipeline

On October 27, Omeros announced positive results in patients with hematopoietic stem cell transplant-associated thrombotic microangiopathy (HSCT-TMA) from the company’s Phase 2 clinical trial of OMS721 in TMAs, with clinically meaningful improvement in measures of red blood cell destruction.

Four days later, Omeros said it had requested fast track designation from the U.S. Food and Drug Administration (FDA) for the development of OMS721 for the treatment of patients with immunoglobulin A (IgA) nephropathy (also known as Berger’s disease).

On November 2, Omeros announced positive results from a Phase 2 clinical trial evaluating the effects of a peroxisome proliferator-activated receptor (PPAR)-gamma agonist in heroin-dependent subjects. The clinical trial demonstrated that the compound statistically significantly reduced drug craving and measures of anxiety in heroin users maintained on sublingual buprenorphine/naloxone.

Omeros Corporation (NASDAQ:OMER) – good news on funding

On October 27 the company announced that it had entered into a new $80 million senior credit facility with CRG LP, a healthcare-focused investment firm.

It is intended to be used to retire the company’s existing credit facility, minimizing restricted cash requirements and providing additional working capital for its advancing pipeline.

The CRG secured credit facility has a six-year term with four years (through December 31, 2020) of interest-only payments after which monthly principal and interest payments will be due through the September 30, 2022 maturity date.

Luke Düster, managing director of CRG said: “As is our standard financing process at CRG, we and our expert consultants performed extensive due diligence on Omeros, OMIDRIA and the rest of the company’s pipeline. The results confirmed that OMIDRIA is a novel and clinically effective drug used in cataract surgery that is well-received in the ophthalmologist community, and that Omeros’ pipeline holds tremendous potential across a number of its programs, which could continue to add significant value to the company over the next few years.”

On Friday Omeros said it had drawn $76 million of the above facility and repaid a previous credit facility.


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