Yahoo Finance Omeros Corp (OMER) Reports Fourth Quarter and Year-End 2023 Financial Results
Net Loss: Q4 net loss was $9.1 million, an improvement from Q3's $37.8 million loss.
Full-Year Net Loss: 2023 net loss totaled $117.8 million, down from 2022's net income of $47.4 million.
Revenue: Earned OMIDRIA royalties of $40.6 million in 2023, down from $65.4 million in 2022.
Cash Position: Cash and short-term investments stood at $171.8 million at year-end, bolstered by a $115.5 million payment in February 2024.
Corporate Developments: Ongoing discussions with FDA for narsoplimab BLA and positive interim data from OMS906 trials.
Omeros Corp (NASDAQ:OMER) released its 8-K filing on April 1, 2024, detailing financial results for the fourth quarter and year ended December 31, 2023. The company reported a reduced net loss in Q4 of $9.1 million, or $0.15 per share, compared to a net loss of $37.8 million, or $0.60 per share, in the previous quarter. For the full year, Omeros posted a net loss of $117.8 million, or $1.88 per share, a shift from the net income of $47.4 million, or $0.76 per share, in the previous year. This year's results reflect the absence of a $200.0 million milestone payment received in 2022.
Omeros is a clinical-stage biopharmaceutical company focused on developing treatments for immunologic disorders, including complement-mediated diseases, cancers, and addictive and compulsive disorders. Its lead drug candidate, narsoplimab, targets the lectin pathway of complement and is under review by the FDA for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy (TA-TMA).
The company's financial achievements are critical in supporting its clinical development programs, particularly as it progresses with discussions with the FDA regarding the resubmission of the BLA for narsoplimab. The recent amendment of the OMIDRIA royalty purchase agreement, resulting in a $115.5 million cash receipt, is a strategic move to extend the company's cash runway into 2026, demonstrating Omeros' ability to manage its finances effectively in a challenging biotechnology industry.
Despite the net loss, Omeros showed a significant reduction in the loss from continuing operations, reporting $39.3 million in Q4 2023 compared to $51.7 million in the previous quarter. The company's cash flow from operations was positive at $74.7 million for the year, including the substantial milestone payment received in February 2023. Additionally, Omeros has been proactive in managing its cash reserves, retiring outstanding convertible notes, repurchasing shares, and receiving a substantial cash inflow from the amended royalty agreement.
"We continue pursuing diligently four major corporate priorities those that we believe will drive substantial near-term shareholder value," said Gregory A. Demopulos, M.D., Omeros chairman and chief executive officer.
Omeros' clinical developments include positive interim data from two Phase 2 trials of OMS906 for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and preparations for Phase 3 development programs for OMS906 in PNH and complement 3 glomerulopathy (C3G). The company also reported advancements in its PDE7 inhibitor program, OMS527, focused on addictions and compulsive disorders as well as movement disorders, supported by a grant from the National Institute on Drug Abuse.
Looking ahead, Omeros anticipates a net loss of $34.0 to $37.0 million for the first quarter of 2024 and projects a cash and investments balance of approximately $230.0 million after further share repurchases. The company's management will host a conference call to discuss these results and provide updates on business activities.
Omeros' financial position, strategic management, and ongoing clinical developments are key factors in assessing the company's potential for future growth and success in the biotechnology sector. Investors and stakeholders will be closely monitoring the FDA's decision on narsoplimab and the progression of Omeros' clinical programs.
For more detailed information, please refer to Omeros Corporation's full financial statements and disclosures in the provided 8-K filing.
Explore the complete 8-K earnings release (here) from Omeros Corp for further details.
This article first appeared on GuruFocus.
