Wedbush Reduces Fair Value Estimate on Omeros to $11 (OMER)

Wedbush is out with its report today on Omeros

, lowering its fair value estimate from $18 to $11. In a note to clients, Wedbush writes, "We believe that OMER is still at an attractive valuation even though we decreased our fair value to about $11 from $18. Omeros is not a one-trick pony but has an extensive pipeline, and we believe additional announcements in 2011 are likely to cause the stock to recover. We calculate our fair value based on a 30% annual discount and a 1x-10x premium range on our net peak annual sales estimate for each product and indication in the clinic, depending on stage of development to reflect risk." Wedbush maintains Outperform on OMER. At the time of posting, shares of OMER were trading pre-market at $4.80, down 40.00% from Thursday's close.