Cantor Fitzgerald Starts Omeros With Buy, $21PT

Cantor Fitzgerald has initiated coverage of Omeros Corporation OMER with a Buy rating and $21 price target, saying that "cash flows from its recently launched eye drug OMIDRIA could fuel its pipeline for years to come."

OMIDRIA has been approved in the U.S. and Europe for alleviating complications during following eye lens surgery.

Seattle, Washington-based Omeros has several clinical and late-stage preclinical programs in development, including complement-mediated disorders, Huntington's disease, schizophrenia and movement disorders.

Analyst Elemer Piros said OMIDRIA was used in about 50,000 procedures during the last 12 months.

In addition, a key pipeline drug OMS721, a complement inhibitor, is about to enter Phase III testing for atypical hemolytic uremic syndrome (aHUS). Piros said OMS721 could eventually compete with Alexion Pharmaceuticals, Inc. ALXN's $2.6 billion Soliris franchise.

Further, Omeros has created a platform for the discovery of novel GPCR (G-Protein coupled receptor) targeted drugs, and has screened over 50 "orphan" GPCRs.

‘At a time when the discovery of novel compounds for GPCRs has slowed significantly, Omeros could become a partner for the pharma industry in addition to developing drug candidates internally,' Piros highlighted.

For 2016, the analyst expects a loss of $1.51 and revenue of $47.7 million. Street expects a loss of $1.76 a share and revenue of $46.96 million.

Shares of Omeros closed Thursday's regular trading session at $11.91.