Omeros Corporation (NASDAQ:OMER) is having an incredible day in the market today, and for good reason. The company announced data from a recent Phase 2 clinical trial, meeting their endpoint and exciting investors. Today, we’ll talk about the data, how the stock reacted to the news, and what I’m expecting to see from OMER ahead.
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OMER Reports Positive Data
As mentioned above, Omeros is having a strong day in the market after reporting positive clinical data. The data comes from the company’s Phase 2 clinical trial of OMS721; a treatment designed for patients with multiple kidney disorder. None of the disorders that have been tested currently have an approved treatment. Also, all of the disorders the treatment is being studied for lead to end-stage renal disease and dialysis.
In the announcement, Omeros Corporation (NASDAQ:OMER) reported that statistical significance was achieved on the key endpoint of improving renal function. Although patient numbers were small, the majority of the population saw improvement. As a result, the company is ready to take the treatment to the next step.
Key Statements
Along with the press release, we were offered key statements from a clinical investigator as well as the CEO of OMER. Here’s what they had to say…
“While the patient numbers are small, the consistency in patients’ clinical courses in these severe diseases is impressive… The responses we have observed in patients with aHUS, including reversal of renal failure and dialysis cessation, and these renal data demonstrate the potential of lectin pathway inhibition in nephrology.” – Professor Michal Nowicki, President of the Polish Society of Nephrology and OMS721 clinical investigator
“We are very excited about these additional data in serious renal diseases… The Phase 3 clinical trial for aHUS is expected to open for enrollment later this year, and the clinical data from these IgA and membranous nephropathy patients increase the number of commercial avenues for OMS721. Current understanding of the importance of the lectin pathway’s role across inflammatory diseases is expanding, and we look forward to continuing to work with the FDA and international regulatory agencies to develop an efficient and rapid path to approval for OMS721 in the treatment of aHUS, IgA and membranous nephropathies and a number of other diseases.” – Gregory A. Demopulos M.D., chariman and CEO at Omeros
What We’re Seeing In The Market
As investors, we know that when positive news hits, we can expect to see a positive reaction in the market. Well, the news with regard to OMER today definitely wasn’t negative. With positive clinical results investors are excited, and it’s showing in the growth of the stock. Early on in the morning, the stock gained more than 10%. However, as excitement faded, OMER has fallen a bit from highs, but is still showing impressive gains on the session. Currently (11:30), the stock is trading at $7.73 per share after a gain of $0.39 per share or 5.34% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from Omeros Corporation (NASDAQ:OMER). However, it’s important to remember that when investing in relatively small cap biotech companies, there’s an inherent level of risk associated with the possibility that treatments won’t make the market, causing massive declines as current approved treatments aren’t enough to keep investors happy. Nonetheless, with the positive data surrounding OMS721, the company is looking to be making the right moves and headed in the right direction. All in all, I’m expecting to see gains ahead, but if you move on this, it’s wise to move with caution.
Follow Omeros Corp (NASDAQ:OMER)
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What Do You Think?
Where do you think OMER is headed moving forward? Join the discussion in the comments below!
About The Author
This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!
