Omeros (OMER) Q3 2024 earnings summary

Executive summary

• Net loss for Q3 2024 was $32.2 million ($0.56/share), improving from $56 million ($0.97/share) in Q2 2024 and $37.8 million ($0.60/share) in Q3 2023, mainly due to lower R&D and manufacturing expenses.

• Cash and investments totaled $123.2 million as of September 30, 2024, down $35.8 million from June 30, 2024, and $48.7 million from year-end 2023.

• OMIDRIA royalties for Q3 were $9.3 million on net sales of $31 million, down from $10.9 million on $36.4 million in Q2 and $10.0 million on $33.3 million in Q3 2023.

• Ongoing development of narsoplimab (MASP-2 inhibitor) and zaltenibart (MASP-3 inhibitor) with regulatory and clinical milestones expected in 2025, including BLA resubmission for narsoplimab and Phase 3 trials for zaltenibart.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses, negative cash flows, and significant debt.

Financial highlights

• Q3 2024 net loss: $32.2 million ($0.56/share); nine-month net loss: $125.5 million ($2.15/share).

• Cash and investments: $123.2 million as of September 30, 2024.

• Q3 operating costs: $35.4 million, down from $48.2 million in Q3 2023 and $23.8 million from Q2, mainly due to lower R&D and manufacturing expenses.

• Interest expense for Q3: $4.1 million, down from $7.9 million in Q3 2023, aided by debt retirements and a $3.4 million non-cash credit.

• Net income from discontinued operations (OMIDRIA) was $4.9 million for Q3 2024.

Outlook and guidance

• Q4 2024 operating costs and R&D/SG&A expenses expected to be similar to Q3.

• Interest income projected at $1.2 million; interest expense expected to rise to $7.2 million due to absence of non-cash adjustments.

• Income from discontinued operations anticipated in the $7–8 million range for Q4.

• BLA resubmission for narsoplimab in TA-TMA targeted soon, with European MAA submission planned for H1 2025.

• Phase 3 enrollment for zaltenibart in PNH expected in early 2025; C3G Phase 3 to follow.