Omeros Corporation (NASDAQ:OMER): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Omeros Corporation's (NASDAQ:OMER) future prospects. Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases. The US$687m market-cap company posted a loss in its most recent financial year of US$183m and a latest trailing-twelve-month loss of US$121m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Omeros will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 4 industry analysts covering Omeros, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$3.0m in 2026. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 77% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Omeros' growth isn’t the focus of this broad overview, however, keep in mind that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Check out our latest analysis for Omeros

Before we wrap up, there’s one issue worth mentioning. Omeros currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Omeros to cover in one brief article, but the key fundamentals for the company can all be found in one place – Omeros' company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Valuation: What is Omeros worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Omeros is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Omeros’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.