Shares of Omeros (OMER -0.93%) rose by a stately 69.9% through the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence. Shares of the commercial-stage biopharmaceutical company jumped this week in response to a $200 million milestone payment from Rayner Surgical.
The payment stems from Rayner's 2021 asset purchase agreement of Omidria, which is an ophthalmic irrigating solution used during cataract surgery or intraocular lens replacement. The drug generated U.S. net sales of $131 million in 2022, according to Omeros' press release.
This $200 million milestone pay should secure the biopharma's near-term financing requirements. Omeros, in fact, noted in the press release that its cash runway should now extend well into 2025 at a minimum.
That's great news for shareholders for a few important reasons. Chief among them, Omeros is currently working through a complete response letter from the U.S. Food and Drug Administration (FDA) issued for its hematopoietic stem cell transplant-associated microangiopathy therapy, narsoplimab, late last year.
This greater financial cushion should afford the company the time necessary to hammer out a potential resubmission for the therapy's biologics license application to the FDA. In addition, the company should now have the financing required to reach critical top-line readouts in high-value indications such as paroxysmal nocturnal hemoglobinuria.
Is Omeros stock still a buy? I think so. The company sports a diverse pipeline of intriguing clinical candidates. This value-laden pipeline could yield multiple positive catalysts for the stock over the course of the year.