Shares of Omeros Corporation (NASDAQ:OMER) rose over 46% today after the company reported fourth-quarter and full-year 2019 operating results. The biopharmaceutical company reported full-year 2019 revenue of $111.8 million, including $33.4 million in the fourth quarter alone. All revenue was generated from Omidria, a solution used during certain eye surgeries, which is growing sales at a healthy rate.
Separately, Omeros Corporation announced updated results for its lead pipeline program. The company's treatment greatly exceeded the efficacy threshold agreed upon with the U.S. Food and Drug Administration (FDA), which bodes well for its eventual approval.
As of 12:52 p.m. EST, the small-cap stock had settled to a 37.1% gain.
Shares of Omeros Corporation have been volatile in recent years. A few days ago, the three-year return was hovering near breakeven. As of today, the three-year return is 49%.
Investors are hoping the business can maintain its positive momentum in 2020 and begin to deliver more consistent results for shareholders. The company rode strong Omidria sales to an operating loss of only $63 million, which marked a significant improvement from an operating loss of $112 million in 2018. It achieved the progress on the bottom line while increasing operating expenses 23% in that span.
Some of the investments reflected in operating expenses might pay off. Omeros Corporation reported updated results for its lead drug candidate, narsoplimab, as a treatment for a rare type of blood clot. The experimental therapy achieved a complete response rate of 54% in all individuals who received at least one dose. That rose to 65% in individuals who received at least four weeks of treatment. Additionally, the 100-day survival rate was 68% for all individuals in the trial.
By comparison, the company and the FDA agreed that a complete response rate of 15% would be the minimum level needed to demonstrate efficacy, while Omeros Corporation claims experts would expect a 100-day survival rate of less than 20% in the patient population.
Omeros Corporation is starting 2020 on a promising trajectory. The company's sole drug product is growing at a healthy clip, while its most advanced clinical program has high odds of earning marketing approval. That said, considering the business ended 2019 with only $61 million in cash, investors might not be surprised if the company moves to raise cash in the near future.