AstraZeneca's Rare Disease Setback Is A 'Clear Positive' For Omeros, Says This Analyst – A Look At Some Key Highlights

• AstraZeneca said Ultomiris failed to meet the primary endpoint of event-free survival through 26 weeks in a Phase 3 trial.
• The company said that the study did not demonstrate a statistically significant improvement over placebo.
• Despite the setback, AstraZeneca added it observed a trend toward treatment benefit and plans to continue discussions with health authorities regarding the adult indication.

Omeros Corp. (OMER) shares drew investor attention on Monday after analysts at H.C. Wainwright said AstraZeneca's (AZN) late-stage setback for Ultomiris removes the biggest near-term competitive threat to Yartemlea, Omeros' FDA-approved treatment for transplant-associated thrombotic microangiopathy (TA-TMA).

According to TheFly, the firm reiterated its ‘Buy’ rating on Omeros, calling AstraZeneca's Phase 3 miss in HSCT-TMA a "clear positive" that removes the key near-term competitive overhang for Yartemlea.

OMER stock was among the top trending tickers on Stocktwits at the time of writing. The stock jumped about 12% in morning trade. 

AZN Trial Falls Short

AstraZeneca said Ultomiris failed to meet the primary endpoint of event-free survival through 26 weeks in a Phase 3 trial evaluating the drug in adults and adolescents with TA-TMA.

The study did not demonstrate a statistically significant improvement over placebo, the company said.

Despite the setback, AstraZeneca added it observed a trend toward treatment benefit and plans to continue discussions with health authorities regarding the adult indication.

The company also intends to move forward with regulatory filings for pediatric TA-TMA after a separate Phase 3 trial showed a statistically significant improvement in survival among children treated with Ultomiris.

Where OMER’s Yartemlea Stands

Yartemlea (narsoplimab-wuug) is an FDA-approved inhibitor of the lectin pathway of complement for the treatment of transplant-associated thrombotic microangiopathy (TA-TMA) in adults and children ages 2 years and older.

The rare complication can occur following hematopoietic stem cell transplants and has limited approved treatment options.

H.C. Wainwright said AstraZeneca's setback improves Yartemlea's competitive positioning in TA-TMA by removing what it viewed as the most significant near-term rival.

HC Wainwright Keeps Focus On US Opportunity For OMER

H.C. Wainwright previously argued that Omeros' long-term investment case hinged on Yartemlea's U.S. commercial potential. Last month, the firm lowered its price target to $33 from $40 after European regulators issued a negative opinion on the therapy, removing the EU opportunity from its valuation model and increasing its research and development spending assumptions.

Even then, the firm said the regulatory setback was "not thesis-breaking," maintaining that a potential U.S. launch remained the primary driver of Omeros' value. The latest setback for AstraZeneca's Ultomiris further reinforces that view by easing competitive pressure in the U.S. market, according to the analyst.

What Retail Traders Think Of OMER Stock

Retail sentiment on Stocktwits around Omeros trended in the ‘bullish’ territory at the time of writing.

One user believes that Omeros needs transparency more than another bullish narrative.

OMER stock is down 38% year-to-date, while AZN stock is down 7%. The State Street SPDR S&P Pharmaceuticals ETF (XPH) is up 59% over the past 12 months, while the iShares Russell 2000 Value ETF (IWN) is up 34%.

Also See: AMZN Is Building A Satellite Network For Smartphones — Here's What Its Latest Leo Filing Reveals

For updates and corrections, email newsroom[at]stocktwits[dot]com.