Quick Win by the Algorithm

On June 13th, 2017, the I Know First algorithm issued a bullish forecast for Omeros Corporation (OMER). OMER had a signal of 11.81 and a predictability of 0.07. As a result, in accordance with the forecast, the company’s stock increased by 38.89% in 3 days, showing a quick win by the algorithm.

Omeros Corporation (OMER) is a biopharmaceutical company engaged in discovering, developing, and commercializing small-molecule and protein therapeutics for mass market. It is also focuses on the development of orphan indications that target inflammation, coagulopathies and disorders of the central nervous system. 

It comes as no surprise that OMER shares have been doing well recently. On June 13, Omeros announced that the US Food and Drug Administration (FDA) had granted breakthrough therapy designation to its product, OMS721. This indicates FDA’s recognition of OMS721’s potential importance in treating IgA nephropathy. The designation enables expedited development and review of the drug candidate, which bodes well for the company. Omeros’ second Phase 3 clinical program for OMS721 is poised to begin later this year and investors are optimistic given FDA’s validation. As a result, OMER shares climbed almost 17% on the same day after the announcement.

Furthermore, the company’s first commercial drug product, OMIDRIA, has been experiencing success in the market. Its sales have been growing steadily since its launch in 2015. Namely, revenues from OMIDRIA sales increased an impressive 69.2% in the first quarter of 2017 compared to the first quarter of 2016. Given this, the breakthrough therapy designation is another boon to Omeros’s growth prospects. The company has high leverage and is looking to lower its high debt-to-assets ratio. FDA’s designation can help Omeros improve its financial position faster. Currently, there are no approved treatments for IgA nephropathy on the market.  Thus, given successful development and subsequent approval of OMS721, the company’s growth prospects stand to benefit significantly in the long term.

Given these developments and conditions, we can see why Omeros’s stock increased.

Current I Know First subscribers received this bullish forecast on OMER on June 13, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.