Omeros Corporation (NASDAQ:OMER) posted financial report for the fourth closed December 31, 2017. Total and OMIDRIA® revenues came at $13.8 million in Q4 2017, a drop of 36.5% from Q3 2017. There was no change in the total number of vials offered to hospitals and ASCs, and unit pricing from Q3 2017.
The fourth quarter results failed to cheer analysts as well as market. Needham’s Serge Belanger had reduced Omeros stock to ‘Hold’ after the firm posted Q4 results. Exclusive revenue producer OMIDRIA recorded sales of a modest $13.8 million, down 36.5% sequentially.
The firm reported that as per the firm’s accounting policies, it failed to recognize a majority of the revenue linked to OMIDRIA inventories owned by wholesalers at December 31 following uncertainty around OMIDRIA repayment. Also, a $2.4 million expense to revenue was noted in Q4 2017 for vials that the firm reserved for returns by the hospitals and ASCs expected in 2018.
Mr. Belanger reported that the weak fourth quarter performance only validates issues with the drug’s reimbursement designation, adding that he finds no prominence on a near-term solution or when sales will scale back.
Gregory A. Demopulos, M.D., the CEO and Chairman of Omeros, expressed that the firm’s progress during Q4 2017 continued to advance on their accomplishments earlier in the year. The company now has three ongoing Phase III clinical programs, aHUS, IgA nephropathy and stem-cell TMA.
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It is in process with continuing its interactions with European regulatory and FDA authorities to support approval pathways. They plan to discuss conditional and accelerated approvals in stem-cell TMA with these regulatory bodies. Next trial up is OMS527, which is on track to move into clinical studies in mid-year for the cure of nicotine addiction. The CEO of Omeros reported that they are assured that OMIDRIA in 2018 will remain to support the advancement of their pipeline.