Omeros spikes higher after reports of continued 'pass-through' status
Shares of Omeros (OMER), a commercial-stage biopharmaceutical company, are surging this afternoon after various media outlets reported that the new government spending bill will benefit the company's cataract surgery drug Omidria. According to STAT, a periodical that focuses on "life sciences and the fast-moving business of making medicines," Omeros, which it describes as a "tiny eye drug company," will benefit from a recent win in Congress. According to STAT, complicated policy, included in the recent spending package, will allow the company an additional two years of higher prices via Medicare for its cataract surgery drug Omidria. According to another business media outlet, MarketWatch, citing Height analyst Andrea Harris," Pass-through" status for Omeros' eye surgery drug Omidria had expired late last year, and the drug was expected to be bundled with other cataract surgery supplies. CEO COMMENTARY: In its earnings press release out on March 1, Omeros CEO Gregory Demopulos stated: "For the quarter ended December 31, 2017, revenues were $13.8M, all relating to sales of OMIDRIA. This compares to OMIDRIA revenues of $12.9M for the same period in 2016. On a sequential quarter-over-quarter basis, OMIDRIA revenue decreased $7.9M, or 36.5%, despite the fact that unit pricing and the total number of vials sold to ASCs and hospitals was unchanged from the quarter ended September 30, 2017. Under the company's accounting policies, it is not able to recognize a majority of the revenue related to OMIDRIA inventories held by wholesalers at year-end because of uncertainty around OMIDRIA reimbursement following expiration of pass-through status on January 1 and resulting reduced first quarter sell-through. In addition, a $2.4M charge to revenue was recorded in the fourth quarter for vials that the company reserved for returns by the ASCs and hospitals anticipated in 2018." PRICE ACTION: Shares of Omeros are off earlier highs of $19.50 per share, but are still up 36% to $15.88 per share.