Seattle-Based Omeros Beefs Up Salesforce as Cataract Surgery Drug Sales Take Off in Q1
May 11, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Omeros , headquartered in Seattle, released its first-quarter financial results yesterday, including the news that it had higher sales in this year’s first quarter than it did all of 2015. The company said it added 37 sales positions over the last couple months.
Omeros reported first quarter revenues of $7.4 million, up 11 percent from the fourth quarter of 2015. Total revenues for 2015 were just $388,000. Sales are coming from the company’s first drug, Omidria, launched in the U.S. in April 2015. The drug is used during cataract surgery and intraocular lens replacement as a way of cutting post-operative pain and stabilizing pupil size.
“Omidria sales continued to grow substantially in Q1,” said Gregory Demopulos, chairman and chief executive officer of Omeros, in a statement. “Growth in the first part of the quarter was relatively restrained due to both internal and external factors, with sales markedly ramping in March. The acceleration in sales growth has continued into the second quarter, with the run rate for Omidria net sales in recent weeks annualizing to approximately $45 million to $50 million. We continue to expect that we will reach cash-flow positive status later this year, fully funding our pipeline.”
That pipeline includes OMS721, which is starting a Phase III trial for atypical hemolytic uremic syndrome (aHUS), and two Phase II trials for OMS721, which are ongoing for thrombotic microangiopathies (TMAs) and renal disease. OMS721 is a human monoclonal antibody.
It was a busy day yesterday for the company. In addition to its financial results, Omeros announced it has signed an exclusive supply and distribution deal for Omidria with ITROM in the Kindgom of Saudi Arabia, the United Arab Emirates and other countries in the Middle East. Based in Dubai, ITROM is a pharmaceutical marketing and distribution company that specializes in ophthalmology.
“We expect that ITROM will begin sales of Omidria later this year,” Demopulos said in a statement. “This marks the start of our expansion to international markets, and we look forward to bringing the benefits of Omidria to patients outside of the U.S.”
Omeros also announced yesterday that Leonard Blum was joining the company as its chief business and commercial officer. Blum was previously senior vice president, chief commercial officer at Theravance and its spin-off Theravance Biopharma . Prior to joining Theravance, Blum was the senior vice president, sales and marketing, at ICOS until the company was acquired by Eli Lilly and Company in 2008.
“We are very pleased that Leonard has joined Omeros,” Demopulos said in a statement. “Leonard brings valuable experience and a proven track record in leading commercial organizations and driving sales—all of which we expect will be assets to Omeros as we continue to accelerate our Omidria revenue growth. We also expect that Leonard will add significant value in the strategic partnering of one or more of our development programs.”
Omeros has been inconsistent in the last year. Shares traded for $13.20 on Aug. 13, 2015, spiked dramatically to $25.03 on Aug. 18, then dropped to $10.91 on Sept. 29. Shares dropped to $9.84 on Jan. 19, 2016, and then rose to $16.37 on Mar. 11. Shares are currently trading for $10.49.
In a report issued yesterday, Maxim Group gave Omeros a “buy” rating. Wedbush gave the company an “outperform” rating on Feb. 29, with a price target of $62. Needham & Company gave it a “buy” rating on March 2, dropping its price target to $28. Seven analysts gave the stock a “buy” rating and one gave it a “hold” rating. There was one “strong buy.” It currently has a consensus rating of “buy” with a consensus price target of $40.71.