SEATTLE, Nov. 19 /PRNewswire-FirstCall/ -- Omeros Corporation
(NASDAQ: OMER) today announced unaudited financial results for the
third quarter ended September 30, 2009. For the three months ended
September 30, 2009, Omeros reported a net loss of $3.9 million, or
$1.34 per share, as compared to a net loss of $7.4 million, or
$2.54 per share, for the same period in 2008. For the nine months
ended September 30, 2009, the Company reported a net loss of $15.5
million, or $5.29 per share, as compared to a net loss of $17.4
million, or $6.07 per share, for the same period in 2008. On
October 7, 2009, Omeros priced its initial public offering (IPO),
which generated net proceeds to the Company of approximately $61.8
million from the sale of 6,820,000 shares of its common stock at a
price of $10.00 per share. "Our IPO afforded Omeros the resources
to advance aggressively our pipeline of clinical and preclinical
programs. We expect that the proceeds will allow us to complete our
ongoing Phase 3 clinical trials for our lead PharmacoSurgery(TM)
product, OMS103HP, and fund its commercial launch into the
arthroscopy market. We also recently amended a key agreement for
our GPCR program, providing us with additional opportunities to
realize the value of the program while limiting our expenditures,"
said Gregory A. Demopulos, M.D., Chairman and CEO of Omeros.
"Throughout the course of next year, we look forward to releasing
data from our Phase 3 arthroscopic program as well as meeting
additional clinical milestones for our ophthalmologic and urologic
programs." Financial Results Total operating expenses for the three
months ended September 30, 2009 were $5.0 million compared to $8.2
million for the same period in 2008. The decrease in operating
expenses in the third quarter of 2009 as compared to the same
period of 2008 was primarily a result of the 2008 write-off of $1.9
million of deferred offering costs related to a delay in the
Company's IPO. Also, in the 2009 period there were decreases in
contract service costs associated with several of Omeros' clinical
and preclinical programs and in clinical trial expenses due to the
prior completion of enrollment in the Company's Phase 2 clinical
study of OMS103HP for arthroscopic meniscectomy surgery. Total
operating expenses for the nine months ended September 30, 2009
were $16.5 million, compared to $19.1 million for the same period
in 2008. The decrease in operating expenses in the nine months
ended September 30, 2009 as compared to the same period of 2008 was
primarily a result of items noted above. Recent Highlights --
Priced the Company's IPO on October 7, 2009, receiving net proceeds
of approximately $61.8 million, and began trading on The NASDAQ
Global Market under the ticker symbol "OMER" on October 8, 2009. --
Announced positive results from the Phase 1/Phase 2 clinical trial
of OMS302, Omeros' PharmacoSurgery product candidate being
developed for use during ophthalmological procedures. OMS302 is a
proprietary combination of an anti-inflammatory agent and an agent
that causes pupil dilation (mydriasis), each with well-known safety
and pharmacologic profiles. The Phase 1/Phase 2 trial enrolled 61
patients undergoing age-related cataract extraction with lens
replacement, and was designed to evaluate efficacy and safety of
OMS302 added to a standard surgical irrigation solution. Data from
this study showed that patients treated with OMS302 reported less
postoperative pain and demonstrated statistically significant
improvement in maintenance of mydriasis during the surgical
procedure compared to patients treated with vehicle control. --
Amended its agreement with Patobios Limited by which Omeros has the
exclusive right to acquire all intellectual property rights to an
assay for use in the Company's GPCR program. As a result of the
amendment, Omeros now has the right to de-orphanize at least three
orphan GPCRs using the assay without having to immediately purchase
the associated intellectual property from Patobios for the $10.8
million CAD purchase price, and Omeros can also grant to third
parties development and/or commercialization rights to those
de-orphanized GPCRs. Under the amendment, Omeros will be required
to pay Patobios a one-time $500,000 CAD de-orphanization milestone
payment instead of the $10.8 million CAD purchase price, with the
$500,000 CAD milestone payment credited in full against the
purchase price if Omeros acquires the assets. Conference Call and
Webcast Today at 5:00 p.m. Eastern Time The Omeros management team
will host a conference call today, November 19, at 5:00 p.m.
Eastern Time (2:00 p.m. Pacific Time), to discuss the Company's
third quarter 2009 financial results and development highlights.
Interested parties may participate in the conference call by
dialing 877-795-3638 (Domestic) or 719-325-4891 (International). To
access the webcast, please go to the Company's website at
http://www.omeros.com/ and go to the "Events" section of the
"Investors" page to log on. A replay of the webcast will be
available on the website for one week following the call. A
telephone replay will also be available from 7:00 p.m. Eastern Time
on November 19 through 11:59 p.m. Eastern Time on November 22 by
dialing 888-203-1112 (Domestic) or 719-457-0820 (International) and
entering conference ID number 4396920. About Omeros Corporation
Omeros Corporation is a clinical-stage biopharmaceutical company
committed to discovering, developing and commercializing products
focused on inflammation and disorders of the central nervous
system. Omeros' most clinically advanced product candidates are
derived from its proprietary PharmacoSurgery(TM) platform designed
to improve clinical outcomes of patients undergoing arthroscopic,
ophthalmological, urological and other surgical and medical
procedures. Omeros has four ongoing PharmacoSurgery(TM) clinical
development programs, and its lead product candidate, OMS103HP, is
being evaluated in Phase 3 clinical trials for use during
arthroscopic surgery to improve postoperative joint function and
reduce postoperative pain. Omeros is also building a diverse
pipeline of preclinical programs targeting inflammation and central
nervous system disorders. Forward-Looking Statements This press
release contains forward-looking statements as defined within the
Private Securities Litigation Reform Act of 1995, which are subject
to the "safe harbor" created by those sections. These statements
include, but are not limited to, statements regarding the Company's
ability to advance its clinical and preclinical pipeline, including
completing its ongoing Phase 3 clinical trials of OMS103HP and
funding the commercial launch of OMS103HP with the proceeds from
its initial public offering; to realize the value of its GPCR
program while limiting the Company's expenditures as a result of
changes to its agreement with Patobios Limited; to release data
from its Phase 3 arthroscopic program as well as meet additional
clinical milestones for its ophthalmologic and urologic programs
over the course of next year; and to de-orphanize orphan GPCRs and
grant related development and/or commercialization rights to third
parties. Forward-looking statements are based on management's
beliefs and assumptions and on information available to management
only as of the date of this press release. Omeros' actual results
could differ materially from those anticipated in these
forward-looking statements for many reasons, including, without
limitation, the risks, uncertainties and other factors described
under the heading "Risk Factors" in the Company's Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission on
November 19, 2009. Given these risks, uncertainties and other
factors, you should not place undue reliance on these
forward-looking statements, and the Company assumes no obligation
to update these forward-looking statements publicly, even if new
information becomes available in the future. OMEROS CORPORATION (A
Development Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data) (unaudited) Period
from June 16, 1994 Three Months Nine Months (Inception) Ended Ended
through September 30, September 30, September 30, ---------------
---------------- 2009 2008 2009 2008 2009 ---- ---- ---- ---- ----
Grant revenue $442 $501 $1,010 $989 $4,403 Operating expenses:
Research and development 3,692 4,737 12,291 12,755 74,525 Acquired
in- process research and development - - - - 10,891 General and
administrative 1,277 3,428 4,162 6,327 36,645 ----- ----- -----
----- ------ Total operating expenses 4,969 8,165 16,453 19,082
122,061 ----- ----- ------ ------ ------- Loss from operations
(4,527) (7,664) (15,443) (18,093) (117,658) Investment income 47
114 189 574 5,352 Interest expense (540) (52) (1,705) (90) (2,334)
Other income (expense) 1,104 222 1,452 165 1,886 ----- --- -----
--- ----- Net loss $(3,916) $(7,380) $(15,507) $(17,444) $(112,754)
======= ======= ======== ======== ========= Basic and diluted net
loss per common share $(1.34) $(2.54) $(5.29) $(6.07) ====== ======
====== ====== Weighted- average shares used to compute basic and
diluted net loss per common share 2,930,391 2,909,688 2,929,728
2,871,704 ========= ========= ========= ========= Pro forma basic
and diluted net loss per common share $(0.33) $(0.52) $(1.14)
$(1.21) ====== ====== ====== ====== Weighted- average pro forma
shares used to compute pro forma basic and diluted net loss per
share 14,444,897 14,301,745 14,422,465 14,263,761 ==========
========== ========== ========== OMEROS CORPORATION (A Development
Stage Company) CONSOLIDATED BALANCE SHEETS (In thousands) September
30, December 31, 2009 2008 ---------- ---------- (unaudited) Assets
Current assets: Cash and cash equivalents $1,367 $12,726 Short-term
investments 3,125 7,256 Grant and other receivables 320 207 Prepaid
expenses and other current assets 128 289 --- --- Total current
assets 4,940 20,478 Deferred offering costs 1,034 - Property and
equipment, net 681 918 Intangible assets, net - 60 Restricted cash
193 193 Other assets 62 32 -- -- Total assets $6,910 $21,681 ======
======= Liabilities, convertible preferred stock and shareholders'
equity (deficit) Current liabilities: Accounts payable $1,530
$1,229 Accrued expenses 3,739 3,764 Preferred stock warrant
liability 902 1,780 Deferred revenue 1,019 232 Current portion of
notes payable 4,750 16,556 ----- ------ Total current liabilities
11,940 23,561 Notes payable, less current portion 9,244 118
Commitments and contingencies Convertible preferred stock: Issued
and outstanding shares-11,514,506 at September 30, 2009 (unaudited)
and 11,392,057 at December 31, 2008; Liquidation preference of
$93,284 at September 30, 2009 (unaudited) and $92,084 at December
31, 2008 91,019 89,168 Shareholders' equity (deficit): Preferred
stock, par value $0.01 per share: Authorized shares - 13,425,919 at
September 30, 2009 (unaudited) and December 31, 2008 Designated
convertible - 13,425,919 at September 30, 2009 (unaudited) and
December 31, 2008 - - Common stock, par value $0.01 per share:
Authorized shares - 20,410,000 at September 30, 2009 (unaudited)
and December 31, 2008; Issued and outstanding shares-2,930,167 and
2,951,406 at September 30, 2009 (unaudited) and December 31, 2008,
respectively 30 30 Additional paid-in capital 7,408 6,150
Accumulated other comprehensive loss 23 (99) Deficit accumulated
during the development stage (112,754) (97,247) -------- -------
Total shareholders' deficit (105,293) (91,166) -------- -------
Total liabilities, convertible preferred stock, and shareholders'
equity (deficit) $6,910 $21,681 ====== ======= DATASOURCE: Omeros
Corporation CONTACT: Carney Noensie, Burns McClellan, Investor
& Media Relations, +1-212-213-0006, , for Omeros Corporation
Web Site: http://www.omeros.com/
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