The Omeros Corp ((NASDAQ: OMER) stock price rallied more than 20% in Thursday premarket trading as investors took kindly to a definitive agreement regarding the sale of the OMIDRIA fanchise to Rayner Surgical Group Ltd. The total value of the transaction stands in excess of $1B.
The structure of the transition is as follows; an upfront payment of $125M and a further $200M in a commercial milestone payment. However, Omeros will retain its accounts receivable at the closing, standing at $34M at the end of the previous quarter. The $1B total also includes substantial royalties paid by Rayner to Omeros on OMIDRIA’s net sales.
OMIDRIA will play a vital role in the portfolio of Rayner’s ophthalmology franchise, which includes a wide range of intraocular lenses, ophthalmic viscoelastic devices, and treatments for dry eyes. Rayner has bold plans for its new franchise, with hopes to extend the OMIDRIA sales force and strengthen its commercial presence.
Gregory A. Demopulos, M.D, CEO of Omeros, believes the transaction is the best route for OMIDIRA:
“This transaction recognizes both the current and future value that OMIDRIA brings to cataract surgery, affording Omeros a significant ongoing economic interest in the expected growth of OMIDRIA”
“We believe that Rayner, with its expertise and increasingly strong international presence in ophthalmology, represents a great home for OMIDRIA and the product’s commercial team, and Omeros is committed to assist Rayner, throughout the transition and beyond, to maximize OMIDRIA utilization and revenues.”
Omeros Corp has seen a year-to-date loss of 47.8%, largely due to the bear run at the beginning of October. Today’s news will provide some degree of comfort for investors, but long-term – OMER fails to seem alluring. With the market open today, OMER had already lost almost half of its premarket gains, with price currently trading at $7.52 and a daily gain of just over 10%.
Healthcare stocks, including OMER shares, saw a wave of investors buy their shares during the pandemic. Governments also pumped money into the companies in an attempt to speed up the vaccine process. But, what happens now vaccines have been approved and the pandemic is becoming less prominent? Should we still invest in coronavirus-focused healthcare stocks? Or should we look to firms tackling other areas? Here are the best healthcare stocks to buy now…
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.