OMER is indeed giving you a wild ride. Down 50% and then up 110%. Somehow I didn't get involved at $9 because I had my eye on 100 other things. I'm happy for you and your wife that things are working out.
The cash burn is still a concern so don't go too crazy with this one.
If it goes into the low teens I will probably buy some. Ive had many biotechs in the past and patience is the hardest thing. My only reservation here is the market cap isnt cheap and it just isnt trading really well..meaning its just kind of slumping along and that kind of makes me wonder. It has a billion dollar market cap, limited sales and limited cash...they will have to either take on more debt or issue shares to raise cash and that wont be good if they have to do a secondary.
Ive found more luck historically taking a flier on microcap biotechs that are under 100M, this one has a bit of a float for a small company (revenue wise) so the risk reward might be small. If you think that things go well, what market cap are you seeing them at and what other companies that are very similar are at those levels? What revenue level do you see them at in reality in 3-5 yrs?
The market is fickle on these biotechs...I dont know enough about that other company you listed to give comparisons or know if they are similar.
I wish the market cap were lower, less shares because that means more potential upside. I need to do more research on the potential...it makes me scratch my head that given where the company is now that they are just kind of keeping a lid on it and not really speculating heavy on the upside potential in the near term. Makes me think the market feels the road will be longer and slower than you are thinking.
The way to really send a biotech into orbit is to shock the market with a development nobody knows that has potential for a big home run...and I dont think the market sees Omidria as the home run because plenty is known about it already and the stock has been sitting in neutral/negative for some time. I dont know the rest of the pipeline and I guess I need to learn it. I dont know that 721 or how it compares to the soliris you mentioned nor if that is a one trick pony for that company?
Established in 1995,
many times in the past.
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