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Sep 30, 2020

Omeros Q3 2020 Earnings Report

Reported a net loss due to increased costs and expenses, partially offset by OMIDRIA revenues.

Key Takeaways

Omeros Corporation reported a net loss of $38.5 million for Q3 2020, with revenues of $26.1 million. The revenue decrease compared to Q3 2019 was due to an $8.7 million deduction as a reserve for product returns related to the expiration of pass-through reimbursement on October 1, 2020. The company had $153.5 million in cash, cash equivalents and short-term investments available for operations as of September 30, 2020.

Q3 2020 revenues were $26.1 million, including an $8.7 million deduction for a return reserve related to OMIDRIA's pass-through reimbursement expiration.

Net loss for Q3 2020 was $38.5 million, or $0.66 per share, which included $13.6 million in non-cash expenses.

On a non-GAAP basis, the adjusted net loss for Q3 2020 was $19.9 million, or $0.34 per share.

As of September 30, 2020, the company had $153.5 million in cash, cash equivalents and short-term investments.

Total Revenue
$26.1M
Previous year: $29.9M
-12.5%
EPS
-$0.43
Previous year: -$0.33
+30.3%
Gross Profit
$25.7M
Cash and Equivalents
$154M
Free Cash Flow
-$35M
Total Assets
$227M

Omeros

Omeros

Omeros Revenue by Segment

Forward Guidance

Omeros is focused on the commercial launch of narsoplimab and is confident about OMIDRIA's separate payment from CMS.

Positive Outlook

  • Narsoplimab BLA submission to the FDA is nearing completion.
  • Narsoplimab is increasingly recognized as a potential treatment for severe COVID-19.
  • OMS906 is progressing through its Phase 1 program.
  • Omeros is confident that OMIDRIA qualifies for separate payment from CMS.
  • The company's unique portfolio of complement inhibitors and pipeline programs are expected to support future growth.

Challenges Ahead

  • Pass-through reimbursement status for OMIDRIA expired on October 1, 2020.
  • The company is still pursuing separate payment from CMS for OMIDRIA.
  • Risks associated with product commercialization and commercial operations.
  • Unproven preclinical and clinical development activities.
  • The impact of COVID-19 on the company's business, financial condition and results of operations.