Omeros leaders optimistic despite recent drop in share price
Puget Sound Business Journal by Valerie Bauman, Staff Writer
Date: Wednesday, November 14, 2012, 11:47am PST
Staff Writer- Puget Sound Business Journal
Omeros Corp. executives and at least some industry analysts are bullish on the Seattle biotech, even after the company issued a statement Tuesday indicating it sees no justification for a recent drop in the share price.
“All of our programs and the entire business of the company has continued to move on track,” said Dr. Gregory Demopulos, CEO and chairman of the board. “Just as we have planned, we have executed. And we’re very pleased.”
At least two analysts watching Omeros (NASDQ: OMER) agreed that the company has promise, even though the share price has fallen under $7, from more than $11.50, in the past few weeks.
“I only see them getting stronger, “ said Liana Moussatos, managing director of equity research at Wedbush Pacgrow Life Sciences Investment Banking Group.
The recent weakness “makes no sense,” said Jason Kolbert, an analyst at the Maxim Group who said now is a good time to own Omeros stock. In an email, Kolbert chalks up the recent sell-off to "irrational fears" that Omeros’ products won’t be successfully commercialized.
Omeros' two major ongoing Phase 3 clinical development programs are OMS302, for use during intraocular lens replacement procedures, and OMS103HP, which is for use during arthroscopic knee surgery.
Omeros reported positive data on Nov. 5 for the eye product. The latest study data on the knee surgery product will be made public later this quarter. A positive outcome could help the stock rebound, Moussatos said.
She said it’s likely that much of the recent sell-offs were by short-term investors who were hoping to benefit when results came back on Omeros’ second Phase 3 trials of OMS302 earlier this month. The stock didn’t immediately respond to the positive results with an uptick, as might be expected.
Moussatos said that could have contributed to the increase in selling earlier this week, as “fast money” investors didn’t see results they were hoping for and got rid of their stock.
Shares of Omeros, which went public in 2009, have ranged from $3.21 to $13.45 over the past 12 months. Moussatos said that she expects investors who are staying with Omeros long-term to see a payoff.
“I fully expect the stock to recover,” she said.
"“I fully expect the stock to recover,” she said."
...now if that ain't the kiss of death, I don't know what is!...except maybe some short seller investigating why OMER suddenly decided that paying a whistleblower 4 MILLION dollars was a lot cheaper than letting everyone hear what he had to reveal in court...HAW, HAW, HAW!!!...