OMER OMEROS CORP

Nasdaq Pharmaceutical Preparations WA CIK: 0001285819
AI RATING
STRONG_SELL
92% Confidence

Investment Thesis

Omeros Corp exhibits severe financial distress with negative stockholders' equity of -$121.2M, indicating technical insolvency. The company burns -$116.1M in operating cash annually against minimal cash reserves of $9.7M, providing less than one month of operational runway. Operating losses of -$122.8M substantially exceed $79.9M in revenue, reflecting a fundamentally unprofitable business model unsustainable without immediate capital intervention.

Strengths

  • + Revenue generation of $79.9M demonstrates market traction for pharmaceutical products
  • + Net income improved 97.9% year-over-year, showing trajectory from deeper losses
  • + Current ratio of 2.76x indicates working capital availability in current assets

Risks

  • ! Negative stockholders' equity of -$121.2M represents technical insolvency with liabilities exceeding all assets
  • ! Operating cash burn of -$116.1M annually against $9.7M cash reserves creates critical liquidity crisis with <1 month runway
  • ! Operating margin of -153.7% with no demonstrated path to profitability given revenue-to-loss magnitude
  • ! Long-term debt of $87.9M compounds financial obligations while company remains technically insolvent

Key Metrics to Watch

Financial Metrics

Revenue
79.9M
Net Income
-3.4M
EPS (Diluted)
$-0.05
Free Cash Flow
-116.2M
Total Assets
325.6M
Cash
9.7M

Profitability Ratios

Gross Margin N/A
Operating Margin -153.7%
Net Margin -4.2%
ROE N/A
ROA -1.0%
FCF Margin -145.4%

Balance Sheet & Liquidity

Current Ratio
2.76x
Quick Ratio
2.75x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
-5.71x
Long-term Debt
87.9M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: 2026-04-13T15:42:26.097830 | Data as of: 2025-12-31 | Powered by Claude AI