Omeros (OMER) Stock: Why The Price Jumped Today

By Amit Chowdhry ● Dec 2, 2021
  • The stock price of Omeros Corporation (NASDAQ: OMER) increased by over 7% during intraday trading. This is why it happened.

The stock price of Omeros Corporation (NASDAQ: OMER) increased by over 7% during intraday trading. Investors are responding positively to Omeros announcing that it has entered into a definitive agreement for the sale of OMIDRIA to Rayner Surgical Group Limited.

Expected to close on or before December 31, 2021, the deal includes an upfront payment of $125 million with an additional $200 million in a commercial milestone payment. And Omeros will also retain its accounts receivable balance at the closing, which was $34 million at the end of last quarter. Together with substantial royalties to be paid by Rayner to Omeros on net sales of OMIDRIA, the transaction is valued in excess of $1 billion.

Rayner is going to pay Omeros royalties on both U.S. and ex-U.S. net sales of OMIDRIA. And in the U.S., the royalty rate will be 50% of U.S. net sales until the earlier of either January 1, 2025, or payment of the $200-million commercial milestone, after which Omeros will receive royalties of 30% of U.S. net sales for the life of OMIDRIA’s U.S. patent estate. And the commercial milestone payment is triggered if a separate payment for OMIDRIA is secured for a continuous period of at least 4 years. Outside of the U.S., Omeros will receive a 15% royalty rate on OMIDRIA net sales throughout the applicable patent life on a country-by-country basis.

OMIDRIA is going to become a key product in Rayner’s ophthalmology franchise, which includes intraocular lenses, ophthalmic viscoelastic devices, and dry eye treatments. And as part of the agreement, Rayner will acquire the OMIDRIA commercial organization, including the OMIDRIA sales force. Plus Rayner plans to expand the sales force in both the U.S. and ex-U.S., further strengthening its commercial presence internationally and further accelerating the U.S. market growth of OMIDRIA.

KEY QUOTES:

“OMIDRIA will be an important part of our ophthalmic product portfolio internationally and a key strategic focus for Rayner. Our new OMIDRIA business and commercial team of seasoned industry professionals are an ideal fit for Rayner as we focus on broadly serving ophthalmic surgeons with our pipeline of innovative products, including the recently FDA-approved RayOne EMV intraocular lens. We look forward to continue growing U.S. sales of OMIDRIA and the rest of our portfolio and to launching EMA-approved OMIDRIA throughout Europe and other regions of the world, consistent with our mission of offering superior products and outcomes for surgeons and their patients.”

— Tim Clover, chief executive officer of Rayner

“We are immensely proud of our OMIDRIA team and its achievements over the last seven years. OMIDRIA has become an important part of cataract surgery, de-risking the procedure for surgeons and improving patient outcomes. This transaction recognizes both the current and future value that OMIDRIA brings to cataract surgery, affording Omeros a significant ongoing economic interest in the expected growth of OMIDRIA, while allowing us to focus our efforts primarily on our complement franchise of large- and small-molecule MASP-2 and MASP-3 inhibitors as well as on the rest of our innovative pipeline. We believe that Rayner, with its expertise and increasingly strong international presence in ophthalmology, represents a great home for OMIDRIA and the product’s commercial team, and Omeros is committed to assist Rayner, throughout the transition and beyond, to maximize OMIDRIA utilization and revenues.”

— Gregory A. Demopulos, M.D., chairman and chief executive officer of Omeros

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.