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With the business potentially at an important milestone, we thought we’d take a closer look at Omeros Corporation’s (NASDAQ:OMER) future prospects. Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases, including complement-mediated diseases, cancers, and addictive and compulsive disorders. The US$579m market-cap company posted a loss in its most recent financial year of US$175m and a latest trailing-twelve-month loss of US$185m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Omeros’ path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Omeros
Consensus from 3 of the American Pharmaceuticals analysts is that Omeros is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$54m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 67%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Omeros’ upcoming projects, however, bear in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Omeros is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
There are key fundamentals of Omeros which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Omeros, take a look at Omeros’ company page on Simply Wall St. We’ve also compiled a list of important aspects you should look at:
