Omeros Analyst Sees $1 Billion Potential For Narsoplimab Before FDA Decision

H.C. Wainwright analyst Brandon Folkes initiated coverage on Omeros Corporation (NASDAQ:OMER) with a Buy rating and a price forecast of $9.

According to Brandon, Omeros holds significant long-term value potential due to its expansive rare disease pipeline.

While the company has faced investor concerns over the high cash burn associated with such a pipeline, it has maintained financial resilience to weather setbacks.

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What Happened: Omeros is now approaching a key milestone, with a potential FDA decision expected on Sept. 25, for its lead asset, Narsoplimab.

The drug, a MASP-2 inhibitor, is under review for the treatment of TA-TMA, a life-threatening complication following stem cell transplants. Narsoplimab has demonstrated promise in improving patient outcomes and lowering mortality in this high-risk group.

Given the severity of the condition, limited treatment options, orphan drug status and strong pricing prospects, Brandon highlights that a potential approval could open up a commercial opportunity worth between $500 million and $1 billion.

Brandon notes that beyond the commercial potential of Narsoplimab, its approval could serve as a key validation of Omeros’ broader pipeline and help fund future development.

The company has several advanced clinical assets, including Zaltenibart (OMS906), a MASP-3 inhibitor being studied for PNH, and OMS1029, a next-generation MASP-2 inhibitor.

In addition, Omeros is working on early-stage programs targeting addiction and cancer.

Alongside its first-quarter 2025 earnings update, the company disclosed that it is temporarily pausing or scaling back certain initiatives to focus on a successful narsoplimab launch. Brandon views this move positively, suggesting it reflects a commitment to allocating resources toward the drug’s launch while maintaining a disciplined approach to investing in pipeline assets that have clearer commercialization pathways.

Brandon highlights that shares of Omeros fell roughly 38% on May 12, 2025 — compared to a 4% gain in the XBI index — following the company’s disclosure that it had agreed to repurchase about $80 million of its 2026 convertible notes.

What’s Next: Despite the negative market reaction, the analyst views the move as a constructive effort to strengthen the company’s balance sheet.

According to Brandon, this step should help improve the company’s financial position and present a cleaner outlook for equity investors as it approaches the FDA’s September decision date for narsoplimab.

The analyst projects the company to report FY25 EPS of $(1.50) loss, and FY26 EPS of $(1.14) loss.

OMER Price Action: Omeros Corp shares are trading higher by 3.58% to $3.91 at publication on Tuesday.

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