Omeros (OMER) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017segment	May 02, 2017shares
Document Information [Line Items]
Number of operating segments | segment	1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	OMER
Entity Registrant Name	OMEROS CORP
Entity Central Index Key	1,285,819
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding | shares		43,939,513

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,282	$ 2,224
Short-term investments	32,371	43,107
Receivables	13,481	12,037
Inventory	960	1,128
Prepaid expense	3,260	1,766
Total current assets	51,354	60,262
Property and equipment, net	1,215	1,181
Restricted cash and investments	5,835	5,835
Total assets	58,404	67,278
Current liabilities:
Accounts payable	2,409	2,519
Accrued expenses	14,336	13,354
Current portion of lease financing obligations	228	198
Total current liabilities	16,973	16,071
Notes payable and lease financing obligations, net	80,503	79,512
Deferred rent	9,041	9,142
Commitments and contingencies (Note 8)
Shareholders’ deficit:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized and none issued and outstanding at March 31, 2017 and December 31, 2016	0	0
Common stock, par value $0.01 per share, 150,000,000 shares authorized at March 31, 2017 and December 31, 2016; 43,937,031 and 43,819,133 issued and outstanding at March 31, 2017 and December 31, 2016, respectively	439	438
Additional paid-in capital	436,424	432,002
Accumulated deficit	(484,976)	(469,887)
Total shareholders’ deficit	(48,113)	(37,447)
Total liabilities and shareholders’ deficit	$ 58,404	$ 67,278

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	20,000,000	20,000,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, authorized shares	150,000,000	150,000,000
Common stock, Issued shares	43,937,031	43,819,133
Common stock, outstanding shares	43,937,031	43,819,133

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Product sales, net	$ 12,257	$ 7,246
Grant revenue	0	173
Revenue	12,257	7,419
Costs and expenses
Cost of product sales	271	327
Research and development	12,240	15,434
Selling, general and administrative	12,471	11,110
Total costs and expenses	24,982	26,871
Loss from operations	(12,725)	(19,452)
Interest expense	(2,663)	(1,375)
Other income (expense), net	299	288
Net loss	(15,089)	(20,539)
Comprehensive loss	$ (15,089)	$ (20,539)
Basic and diluted net loss per share (USD per share)	$ (0.34)	$ (0.54)
Weighted-average shares used to compute basic and diluted net loss per share (shares)	43,828,572	38,317,084

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (15,089)	$ (20,539)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	115	53
Stock-based compensation expense	3,276	4,422
Non-cash interest expense	995	213
Changes in operating assets and liabilities:
Receivables	(1,444)	(129)
Inventory	168	(1,500)
Prepaid expenses and other assets	(1,494)	(420)
Accounts payable, accrued expenses, and deferred rent	771	1,272
Net cash used in operating activities	(12,702)	(16,628)
Investing activities:
Purchases of property and equipment	(72)	0
Purchases of investments	(1,042)	(18)
Proceeds from the sale and maturities of investments	11,778	14,650
Net cash provided by investing activities	10,664	14,632
Financing activities:
Payments on lease financing obligations	(51)	0
Proceeds upon exercise of stock options and warrants	1,147	1,609
Net cash provided by financing activities	1,096	1,609
Net decrease in cash and cash equivalents	(942)	(387)
Cash and cash equivalents at beginning of period	2,224	1,365
Cash and cash equivalents at end of period	1,282	978
Supplemental cash flow information
Cash paid for interest	1,667	776
Conversion of accrued interest to notes payable	805	0
Property acquired under capital lease	$ 70	$ 0

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period, determined using the treasury-stock method. Common share equivalents are excluded from the diluted net loss per share computation if their effect is anti-dilutive. The basic and diluted net loss per share amounts for the three months ended March 31, 2017 and 2016 were computed based on the shares of common stock outstanding during the respective periods. Potentially dilutive securities excluded from the diluted loss per share calculation are as follows: March 31, 2017 2016 Outstanding options to purchase common stock 10,924,062 9,302,348 Outstanding warrants to purchase common stock 100,602 — Total 11,024,664 9,302,348

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Organization and Significant Accounting Policies Organization We are a biopharmaceutical company committed to discovering, developing and commercializing both small-molecule and protein therapeutics for large-market as well as orphan indications targeting inflammation, coagulopathies and disorders of the central nervous system. Our first drug product, OMIDRIA, is approved by the United States (U.S.) Food and Drug Administration (FDA) and in the European Economic Area for use during cataract surgery or intraocular lens replacement. Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of Omeros Corporation (Omeros) and our wholly owned subsidiaries. All inter-company transactions have been eliminated and we have determined we operate in one segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information as of March 31, 2017 and for the three months ended March 31, 2017 and 2016 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2016 has been derived from our audited financial statements but does not include all of the information and footnotes required by GAAP for audited annual financial information. The accompanying unaudited condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the U.S. Securities and Exchange Commission (SEC) on March 16, 2017. Going Concern Under ASC 205-40, we have the responsibility to evaluate whether conditions and/or events raise substantial doubt about our ability to meet our future financial obligations as they become due within one year after the date that the financial statements are issued. As required by this standard, our evaluation shall initially not take into consideration the potential mitigating effects of our plans that have not been fully implemented as of the date the financial statements are issued. In performing the first step of this assessment, we concluded that the following conditions raise substantial doubt about our ability to meet our financial obligations as they become due. We have a history of net losses ( $66.7 million in 2016 ) and use significant cash in operating activities ( $51.5 million in 2016 ). For the three months ended March 31, 2017 , our net loss was $15.1 million and cash used in operating activities was $12.7 million . As of March 31, 2017 , we had $33.7 million in cash, cash equivalents and short-term investments available to fund operations and debt service costs. We expect to continue to incur negative cash flows until such time as OMIDRIA or other sources of revenue generate sufficient cash inflows to finance our operations and debt service requirements (which debt service will be at least $6.9 million through May 10, 2018). In addition, we also considered that pass-through reimbursement for our commercial product, OMIDRIA, is currently due to expire as of January 1, 2018. In performing the second step of this assessment, we are required to evaluate whether our plans to mitigate the conditions above alleviate the substantial doubt about our ability to meet our obligations as they become due within one year after the date that the financial statements are issued. Our future plans include securing continued separate reimbursement (or equivalent reimbursement treatment) for OMIDRIA beyond the January 1, 2018 expiration of pass-through reimbursement, and additional funding sources may include establishing corporate partnerships, establishing collaboration and licensing revenue agreements, and issuing public or private equity securities, including selling common stock through our at-the-market facility (ATM) with JonesTrading Institutional Services LLC (JonesTrading) (see Note 9 for further detail). We also have the ability to borrow an additional $25.0 million that is available at our election under our existing CRG Loan Agreement through September 19, 2017, and an additional $20.0 million if our OMIDRIA net product sales exceed $25.0 million or our average market capitalization averages at least $1.0 billion for any consecutive three month period on or prior to December 31, 2017 (see Note 7 for further detail). While an additional $25.0 million is currently available at our election under the CRG Loan Agreement, the other sources of working capital are not currently assured, and consequently these sources of capital do not sufficiently mitigate the risks and uncertainties disclosed above. We have therefore concluded there is substantial doubt about our ability to continue as a going concern through May 10, 2018. The accompanying unaudited condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to our ability to continue as a going concern. Product Sales, Net We record revenue from product sales when the product is delivered to our wholesalers. Product sales to a wholesaler are not recorded if we determine that the wholesaler’s on-hand OMIDRIA inventory, based on sell-through and inventory information we regularly receive from our wholesalers, exceeds approximately eight weeks of projected demand. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, product returns and rebates. Accruals or allowances are established for these deductions in the same period when revenue is recognized, and actual amounts incurred are offset against the applicable accruals or allowances. We reflect each of these accruals or allowances as either a reduction in the related account receivable or as an accrued liability, depending on how the amount is expected to be settled. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include revenue recognition, fair market value of investments, stock-based compensation expense and accruals for clinical trials and contingencies. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances; however, actual results could differ from these estimates. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update ASU No. 2016-09 related to stock compensation, which simplifies several aspects of the accounting and presentation in the financial statements of share-based payment transactions. The new guidance requires companies to record all of the excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We adopted the standard on January 1, 2017 . Upon adoption, we recognized the cumulative-effect of the previously unrecognized tax benefits of compensation cost (“windfall”) of $4.5 million by recording a deferred tax asset, which was then fully offset by a valuation allowance resulting in no impact to our Consolidated Balance Sheet. Recent Accounting Pronouncements In May 2014, the FASB issued amended guidance related to revenue from contracts with customers. The amended guidance introduces a new principles-based framework for revenue recognition and disclosure. Since its issuance, the FASB has issued five ASUs amending the guidance and effective date, and the SEC has rescinded certain related guidance; the most recent of which was issued in December 2016. The effective date of the guidance requires us to adopt the standard at the beginning of our first quarter of fiscal 2018 with earlier application permitted. The new guidance requires either a modified retrospective method or a full retrospective method of transition. We currently anticipate adopting the guidance at the beginning of our first quarter of fiscal 2018 under the modified retrospective method. While we have not yet completed our final review of the impact of this guidance, we currently do not anticipate a material impact on our revenue recognition practices. We continue to review variable consideration, potential disclosures, and our method of adoption to complete our evaluation of the impact on our consolidated financial statements. In addition, we continue to monitor additional changes, modifications, clarifications or interpretations undertaken by the FASB, which may impact our current conclusions. In February 2016, the FASB issued ASU 2016-02 related to lease accounting. This standard requires lessees to recognize a right-of-use asset and a lease liability for most leases. This standard must be applied using a modified retrospective transition method and is effective for all annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are evaluating how this new standard will impact the presentation of our financial statements and related disclosures.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Investments	Cash, Cash Equivalents and Investments As of March 31, 2017 and December 31, 2016 , all investments are classified as short-term and available-for-sale on the accompanying Condensed Consolidated Balance Sheets. Investment income, which is included as a component of other income (expense), consists of interest earned.

Fair-Value Measurements

Fair-Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair-Value Measurements	Fair-Value Measurements On a recurring basis, we measure certain financial assets at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: Level 1—Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3—Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis are as follows: March 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,835 $ — $ — $ 5,835 Money-market funds classified as short-term investments 32,371 — — 32,371 Total $ 38,206 $ — $ — $ 38,206 December 31, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,835 $ — $ — $ 5,835 Money-market funds classified as short-term investments 43,107 — — 43,107 Total $ 48,942 $ — $ — $ 48,942 Cash held in demand deposit accounts of $1.3 million and $2.2 million is excluded from our fair-value hierarchy disclosure as of March 31, 2017 and December 31, 2016 , respectively. There were no unrealized gains and losses associated with our short-term investments as of March 31, 2017 or December 31, 2016 . The carrying amounts reported in the accompanying Condensed Consolidated Balance Sheets for receivables, accounts payable, other current monetary assets and liabilities and notes payable and lease financing obligations approximate fair value.

Inventory (Notes)

Inventory (Notes)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory The components of inventory are as follows: March 31, December 31, (In thousands) Raw materials $ 101 $ 101 Work-in-process 696 854 Finished goods 163 173 Total inventory $ 960 $ 1,128 Work-in-process consists of manufactured vials of OMIDRIA which have not been packaged into finished goods.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: March 31, December 31, (In thousands) Contract research and development $ 3,751 $ 3,030 Consulting and professional fees 3,726 2,223 Employee compensation 2,704 4,551 Sales rebates and discounts 2,098 1,335 Clinical trials 999 1,167 Other accruals 1,058 1,048 Total accrued liabilities $ 14,336 $ 13,354

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Notes Payable	Notes Payable Notes payable and lease financing obligations consist of the following: March 31, 2017 December 31, 2016 (in thousands) Notes payable $ 81,321 $ 80,516 Lender facility fee payable upon maturity 4,066 4,025 Lease financing obligations 549 522 Notes payable, facility fee and lease financing obligations 85,936 85,063 Unamortized debt discount (3,859 ) (3,958 ) Unamortized debt issuance costs (1,346 ) (1,395 ) Current portion of lease financing obligations (228 ) (198 ) Non-current portion of notes payable and lease financing obligations, net $ 80,503 $ 79,512 In October 2016, we entered into the CRG Loan Agreement, which requires that we make interest-only payments through December 31, 2020. Subject to the achievement of certain milestones, this interest-only period potentially could be extended through the maturity date of September 30, 2022. In November 2016, we borrowed $80.0 million under the CRG Loan Agreement and repaid our then-outstanding notes payable. In May 2017, CRG agreed that we can access, at our election, the $25.0 million available in the next tranche under the CRG Loan Agreement. The borrowing is available through September 19, 2017. We also have the ability to borrow an additional $20.0 million if we achieve OMIDRIA net product sales of at least $25.0 million or an average market capitalization of at least $1.0 billion for any consecutive three-month period ending on or prior to December 31, 2017, and the borrowing occurs on or prior to March 21, 2018. The CRG Loan Agreement accrues interest at an annual rate of 12.25% ( 4.00% of which can be deferred at our option during the interest-only period by adding such amount to the aggregate principal amount) and is interest only for a minimum of four years. On March 31, 2017, as allowed under the CRG Loan Agreement, we deferred $805,000 of interest due on March 31, 2017 by increasing the principal amount outstanding. The CRG Loan Agreement requires us to maintain cash and cash equivalents of $5.0 million during the term of the agreement which is recorded as restricted cash and investments in our Condensed Consolidated Balance Sheet. We are also required to pay a facility fee equal to 5.00% of the aggregate principal amount borrowed (including principal additions related to deferred interest) on repayment of the CRG Loan Agreement. The $4.1 million related to the facility fee is being accreted to notes payable using the effective interest method over the term of the CRG Loan Agreement. We may prepay all or a portion of the outstanding principal under the CRG Loan Agreement at any time upon prior notice subject to a prepayment fee through September 30, 2019, with no prepayment fee being owed thereafter. In certain circumstances, including a change of control and certain asset sales or licensing transactions, we are required to prepay all or a portion of the loan, including the applicable prepayment premium on the outstanding principal to be prepaid. The CRG Loan Agreement requires us to achieve either (a) certain minimum net revenue amounts through the end of 2021, which are $55.0 million and $65.0 million for the 2017 and 2018 calendar years, respectively, or (b) a minimum market capitalization threshold equal to the product of 6.4 multiplied by the aggregate principal amount of loans outstanding under the CRG Loan Agreement, determined as of the fifth business day following announcement of earnings results for the applicable year. If we are unable to satisfy the minimum annual revenue requirement or the market capitalization threshold for any given year, we may avoid a related default by repaying the shortfall between actual revenues and the minimum revenue requirement for such year using proceeds generated by an equity or subordinated debt issuance. The CRG Loan Agreement includes customary events of default (see Note 7 of the “Notes to Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2016). If there is an event of default the lenders may have the right to accelerate all of our repayment obligations under the CRG Loan Agreement and to take control of our pledged assets, which consists of substantially all of our assets including our intellectual property. Under certain circumstances, a default interest rate of an additional 4.00% per annum will apply to all outstanding obligations during the existence of an event of default. There was no event of default under the CRG Loan Agreement as of March 31, 2017 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Development Milestones and Product Royalties We have retained control of worldwide commercial rights to OMIDRIA, to all of our product candidates and to our programs other than OMS103. We may be required, in connection with existing in-licensing or asset acquisition agreements, to make certain royalty and milestone payments and we cannot, at this time, determine when or if the related milestones will be achieved or whether the events triggering the commencement of payment obligations will occur. See Note 8 to our Consolidated Financial Statements for the year ended December 31, 2016 included in our Annual Report on Form 10-K. Contracts We have various agreements with third parties that collectively require payment of termination fees totaling $2.7 million as of March 31, 2017 if we cancel work within specific time frames, either prior to commencing or during performance of the contracted services. This is in addition to fees associated with the CRG Loan Agreement (see Note 7) and within the Contractual Obligations and Commitments and Financial Condition - Liquidity and Capital Resources sections of Management’s Discussion and Analysis. Litigation As described within Note 8 of the “Notes to Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2016 , we filed a patent infringement lawsuit against Par Pharmaceutical, Inc. and its subsidiary, Par Sterile Products, LLC (collectively, Par) following our receipt of a Paragraph IV Notice Letter from Par stating that it had filed an Abbreviated New Drug Application (ANDA) seeking approval from the FDA to market a generic version of OMIDRIA before the expiration of three Orange Book-listed patents covering OMIDRIA. Following receipt of the Paragraph IV Notice Letter, in September 2015 we filed a patent infringement lawsuit under the Hatch-Waxman Act against Par. In April 2016, August 2016 and November 2016, we amended the lawsuit to assert additional OMIDRIA patents. Par has stipulated to infringement of each of the currently asserted patents, and the court entered a partial judgment that Par’s filing of its ANDA constitutes an act of infringement of each of the currently asserted patents, subject to Par’s continued invalidity defenses and any challenge to enforceability. The filing of our suit against Par triggered a 30-month stay of the FDA’s approval of Par’s ANDA, which is expected to remain in effect until late January 2018. We have reviewed the invalidity assertions in Par’s Paragraph IV Notice Letter and defenses and counterclaims and believe they do not have merit, and we intend to defend our patents vigorously in the litigation against Par. Hatch-Waxman Filing On May 10, 2017, we received a Notice Letter from Sandoz, Inc. (Sandoz) that Sandoz has filed an ANDA containing a Paragraph IV Certification under the Hatch-Waxman Act seeking approval from the FDA to market a generic version of OMIDRIA prior to the expiration of six Orange Book-listed patents covering OMIDRIA. These patents were granted following review by the U.S. Patent and Trademark Office, are presumed to be valid under governing law, and can only be invalidated in federal court with clear and convincing evidence. We are currently reviewing the details of Sandoz’s notice letter. Omeros is confident in its intellectual property and intends to vigorously enforce its patent rights.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Common Stock At Market Issuance Sales Agreement - We have an At Market Issuance Sales Agreement (ATM Agreement) with JonesTrading pursuant to which we may direct JonesTrading to sell shares of our common stock directly on The Nasdaq Global Market, through a market maker other than on an exchange or in negotiated transactions. Any sales made under the ATM Agreement are based solely on our instructions and JonesTrading will receive a 1.7% commission from the gross proceeds. The ATM Agreement may be terminated by either party at any time upon 10 days ’ notice to the other party or by JonesTrading at any time in certain circumstances including the occurrence of a “material adverse effect” (as defined in the ATM Agreement) to Omeros. We did not sell any shares of our common stock under the ATM Agreement during the three months ended March 31, 2017 and 2016. We are currently permitted to sell shares of our common stock having an aggregate offering amount of up to $50.0 million under the ATM Agreement. Securities Offerings - In February 2015, we sold 3.4 million shares of our common stock at a public offering price of $20.03 per share and sold pre-funded warrants to purchase up to 749,250 shares of our common stock at a public offering price of $20.02 per pre-funded warrant share. The pre-funded warrants were exercised during the three months ended March 31, 2016 and we received cash proceeds of $7,500 in connection with the exercise. For the three months ended March 31, 2017, we received proceeds of $1.1 million upon the exercise of stock options which resulted in the issuance of 117,898 shares of common stock. For the three months ended March 31, 2016, we received proceeds of $1.6 million upon the exercise of stock options which resulted in the issuance of 329,013 shares of common stock. Warrants In connection with an amendment of the then-outstanding notes payable on May 18, 2016, we issued warrants to purchase an aggregate of 100,602 shares of our common stock. As of March 31, 2017, these warrants remained outstanding and are exercisable through May 18, 2023 at an exercise price of $9.94 per share.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense includes amortization of stock options granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations and Comprehensive Loss as follows: Three Months Ended 2017 2016 (In thousands) Research and development $ 1,474 $ 2,155 Selling, general and administrative 1,802 2,267 Total $ 3,276 $ 4,422 In February 2017, in connection with our annual employee review process, we granted qualified employees options to purchase approximately 1.4 million shares of our common stock with an exercise price of $11.55 . The fair value of each option grant to employees and directors is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were applied to employee and director stock option grants during the periods ended: Three Months Ended 2017 2016 Estimated weighted-average fair value $ 7.64 $ 6.62 Weighted-average assumptions Expected volatility 75 % 74 % Expected term, in years 6.0 5.7 Risk-free interest rate 2.06 % 1.44 % Expected dividend yield — % — % Stock option activity for all stock plans and related information is as follows: Options Outstanding Weighted- Average Exercise Price per Share Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Balance at December 31, 2016 9,809,374 $ 9.66 Granted 1,475,300 11.55 Exercised (117,898 ) 9.74 Forfeited (242,714 ) 10.44 Balance at March 31, 2017 10,924,062 $ 9.88 7.28 $ 58,215 Vested and expected to vest at March 31, 2017 10,510,973 $ 9.82 7.21 $ 56,632 Exercisable at March 31, 2017 6,817,595 $ 8.97 6.10 $ 42,519 At March 31, 2017 , excluding non-employee stock options, the total estimated compensation expense to be recognized in connection with our unvested options is $24.9 million , and 1,061,046 shares were available to grant.

Organization and Significant 16

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of Omeros Corporation (Omeros) and our wholly owned subsidiaries. All inter-company transactions have been eliminated and we have determined we operate in one segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information as of March 31, 2017 and for the three months ended March 31, 2017 and 2016 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2016 has been derived from our audited financial statements but does not include all of the information and footnotes required by GAAP for audited annual financial information. The accompanying unaudited condensed consolidated financial statements and related notes thereto should be read in conjunction with the audited consolidated financial statements and related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the U.S. Securities and Exchange Commission (SEC) on March 16, 2017.
Product Sales, Net	Product Sales, Net We record revenue from product sales when the product is delivered to our wholesalers. Product sales to a wholesaler are not recorded if we determine that the wholesaler’s on-hand OMIDRIA inventory, based on sell-through and inventory information we regularly receive from our wholesalers, exceeds approximately eight weeks of projected demand. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, product returns and rebates. Accruals or allowances are established for these deductions in the same period when revenue is recognized, and actual amounts incurred are offset against the applicable accruals or allowances. We reflect each of these accruals or allowances as either a reduction in the related account receivable or as an accrued liability, depending on how the amount is expected to be settled.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include revenue recognition, fair market value of investments, stock-based compensation expense and accruals for clinical trials and contingencies. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances; however, actual results could differ from these estimates.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update ASU No. 2016-09 related to stock compensation, which simplifies several aspects of the accounting and presentation in the financial statements of share-based payment transactions. The new guidance requires companies to record all of the excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We adopted the standard on January 1, 2017 . Upon adoption, we recognized the cumulative-effect of the previously unrecognized tax benefits of compensation cost (“windfall”) of $4.5 million by recording a deferred tax asset, which was then fully offset by a valuation allowance resulting in no impact to our Consolidated Balance Sheet. Recent Accounting Pronouncements In May 2014, the FASB issued amended guidance related to revenue from contracts with customers. The amended guidance introduces a new principles-based framework for revenue recognition and disclosure. Since its issuance, the FASB has issued five ASUs amending the guidance and effective date, and the SEC has rescinded certain related guidance; the most recent of which was issued in December 2016. The effective date of the guidance requires us to adopt the standard at the beginning of our first quarter of fiscal 2018 with earlier application permitted. The new guidance requires either a modified retrospective method or a full retrospective method of transition. We currently anticipate adopting the guidance at the beginning of our first quarter of fiscal 2018 under the modified retrospective method. While we have not yet completed our final review of the impact of this guidance, we currently do not anticipate a material impact on our revenue recognition practices. We continue to review variable consideration, potential disclosures, and our method of adoption to complete our evaluation of the impact on our consolidated financial statements. In addition, we continue to monitor additional changes, modifications, clarifications or interpretations undertaken by the FASB, which may impact our current conclusions. In February 2016, the FASB issued ASU 2016-02 related to lease accounting. This standard requires lessees to recognize a right-of-use asset and a lease liability for most leases. This standard must be applied using a modified retrospective transition method and is effective for all annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are evaluating how this new standard will impact the presentation of our financial statements and related disclosures.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Calculation of Historical Outstanding Dilutive Securities Not Included in Diluted Loss per Share	Potentially dilutive securities excluded from the diluted loss per share calculation are as follows: March 31, 2017 2016 Outstanding options to purchase common stock 10,924,062 9,302,348 Outstanding warrants to purchase common stock 100,602 — Total 11,024,664 9,302,348

Fair-Value Measurements (Tables

Fair-Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	Our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis are as follows: March 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,835 $ — $ — $ 5,835 Money-market funds classified as short-term investments 32,371 — — 32,371 Total $ 38,206 $ — $ — $ 38,206 December 31, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,835 $ — $ — $ 5,835 Money-market funds classified as short-term investments 43,107 — — 43,107 Total $ 48,942 $ — $ — $ 48,942

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The components of inventory are as follows: March 31, December 31, (In thousands) Raw materials $ 101 $ 101 Work-in-process 696 854 Finished goods 163 173 Total inventory $ 960 $ 1,128

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities consisted of the following: March 31, December 31, (In thousands) Contract research and development $ 3,751 $ 3,030 Consulting and professional fees 3,726 2,223 Employee compensation 2,704 4,551 Sales rebates and discounts 2,098 1,335 Clinical trials 999 1,167 Other accruals 1,058 1,048 Total accrued liabilities $ 14,336 $ 13,354

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of notes payable and lease financing obligations	Notes payable and lease financing obligations consist of the following: March 31, 2017 December 31, 2016 (in thousands) Notes payable $ 81,321 $ 80,516 Lender facility fee payable upon maturity 4,066 4,025 Lease financing obligations 549 522 Notes payable, facility fee and lease financing obligations 85,936 85,063 Unamortized debt discount (3,859 ) (3,958 ) Unamortized debt issuance costs (1,346 ) (1,395 ) Current portion of lease financing obligations (228 ) (198 ) Non-current portion of notes payable and lease financing obligations, net $ 80,503 $ 79,512

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense includes amortization of stock options granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations and Comprehensive Loss as follows: Three Months Ended 2017 2016 (In thousands) Research and development $ 1,474 $ 2,155 Selling, general and administrative 1,802 2,267 Total $ 3,276 $ 4,422
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were applied to employee and director stock option grants during the periods ended: Three Months Ended 2017 2016 Estimated weighted-average fair value $ 7.64 $ 6.62 Weighted-average assumptions Expected volatility 75 % 74 % Expected term, in years 6.0 5.7 Risk-free interest rate 2.06 % 1.44 % Expected dividend yield — % — %
Stock Option Activity and Related Information	Stock option activity for all stock plans and related information is as follows: Options Outstanding Weighted- Average Exercise Price per Share Remaining Contractual Life (In years) Aggregate Intrinsic Value (In thousands) Balance at December 31, 2016 9,809,374 $ 9.66 Granted 1,475,300 11.55 Exercised (117,898 ) 9.74 Forfeited (242,714 ) 10.44 Balance at March 31, 2017 10,924,062 $ 9.88 7.28 $ 58,215 Vested and expected to vest at March 31, 2017 10,510,973 $ 9.82 7.21 $ 56,632 Exercisable at March 31, 2017 6,817,595 $ 8.97 6.10 $ 42,519

Net Loss Per Share - Calculatio

Net Loss Per Share - Calculation of Historical Outstanding Dilutive Securities Not Included in Diluted Loss Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	11,024,664	9,302,348
Outstanding options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	10,924,062	9,302,348
Outstanding warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	100,602	0

Organization and Significant 24

Organization and Significant Accounting Policies (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018USD ($)	May 10, 2018USD ($)	Dec. 31, 2017USD ($)	May 10, 2017USD ($)	Nov. 30, 2016USD ($)
Debt Instrument [Line Items]
Number of operating segments | segment	1
Net loss	$ 15,089	$ 20,539	$ (66,700)
Net cash used in operating activities	12,702	$ 16,628	$ (51,500)
Cash, cash equivalents and short-term investments	33,700
Excess tax benefit	$ 4,500
CRG Loan
Debt Instrument [Line Items]
Additional borrowing capacity, tranche one								$ 25,000
Additional borrowing capacity, tranche two								20,000
Debt instrument, covenant compliance, product sales revenues required over consecutive 3 month period, tranche two								25,000
Debt instrument, covenant compliance, average market capitalization, tranche two								$ 1,000,000
Scenario, Forecast | CRG Loan
Debt Instrument [Line Items]
Debt instrument, covenant compliance, minimum net revenue amount				$ 65,000	$ 6,900	$ 55,000
Subsequent Event | CRG Loan
Debt Instrument [Line Items]
Additional borrowing capacity, tranche one							$ 25,000

Fair-Value Measurements - Finan

Fair-Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	$ 38,206	$ 48,942
Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	5,835	5,835
Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	32,371	43,107
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	38,206	48,942
Level 1 | Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	5,835	5,835
Level 1 | Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	32,371	43,107
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	0	0
Level 2 | Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	0	0
Level 2 | Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	0	0
Level 3 | Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	0	0
Level 3 | Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	$ 0	$ 0

Fair-Value Measurements - Narra

Fair-Value Measurements - Narrative (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Cash excluded from fair value hierarchy disclosure	$ 1,300,000	$ 2,200,000
Unrealized gain (loss) on investments	$ 0	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 101	$ 101
Work-in-process	696	854
Finished goods	163	173
Inventory	$ 960	$ 1,128

Accrued Liabilities - Accrued L

Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Contract research and development	$ 3,751	$ 3,030
Consulting and professional fees	3,726	2,223
Employee compensation	2,704	4,551
Sales rebates and discounts	2,098	1,335
Clinical trials	999	1,167
Other accruals	1,058	1,048
Total accrued liabilities	$ 14,336	$ 13,354

Notes Payable Schedule of Notes

Notes Payable Schedule of Notes Payable and Lease Financing Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes payable	$ 81,321	$ 80,516
Lender facility fee payable upon maturity	4,066	4,025
Lease financing obligations	549	522
Notes payable, facility fee and lease financing obligations	85,936	85,063
Unamortized debt discount	(3,859)	(3,958)
Unamortized debt issuance costs	(1,346)	(1,395)
Current portion of lease financing obligations	(228)	(198)
Non-current portion of notes payable and lease financing obligations, net	$ 80,503	$ 79,512

Notes Payable (Detail)

Notes Payable (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)	May 10, 2018USD ($)	Dec. 31, 2017USD ($)	May 10, 2017USD ($)	Dec. 31, 2016USD ($)	Nov. 30, 2016USD ($)
Debt Instrument [Line Items]
Lender facility fee payable upon maturity	$ 4,066,000					$ 4,025,000
CRG Loan
Debt Instrument [Line Items]
Debt issued							$ 80,000,000
Additional borrowing capacity, tranche one							25,000,000
Additional borrowing capacity, tranche two							20,000,000
Debt instrument, covenant compliance, product sales revenues required over consecutive 3 month period, tranche two							25,000,000
Debt instrument, covenant compliance, average market capitalization, tranche two							$ 1,000,000,000
Accrued interest rate							12.25%
Deferred interest rate percentage							4.00%
Increase in principal amount of debt outstanding from deferred interest	$ 805,000
Debt instrument, covenant compliance, minimum restricted cash and cash equivalents							$ 5,000,000
Maturity fee, as a percent							5.00%
Debt instrument, covenant compliance, minimum market capitalization threshold multiplier							6.4
Increase in interest rate if an event of default occurs							4.00%
CRG Loan | Scenario, Forecast
Debt Instrument [Line Items]
Debt instrument, covenant compliance, minimum net revenue amount		$ 65,000,000	$ 6,900,000	$ 55,000,000
Subsequent Event | CRG Loan
Debt Instrument [Line Items]
Additional borrowing capacity, tranche one					$ 25,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	May 10, 2017patent	Mar. 31, 2017USD ($)	Dec. 31, 2016patent
Loss Contingencies [Line Items]
Contract termination fees | $		$ 2.7
Patents allegedly infringed			3
Subsequent Event
Loss Contingencies [Line Items]
Patents expired	6

Shareholders' Equity (Detail)

Shareholders' Equity (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 28, 2015	Mar. 31, 2017	Mar. 31, 2016	May 18, 2016
Class of Stock [Line Items]
Stock issued during period	3,400,000
Share price (in USD per share)	$ 20.03
Shares of common stock to purchase by warrant (in shares)	749,250
Proceeds from issuance of common stock and pre-funded warrants, net			$ 7,500
Proceeds upon exercise of stock options and warrants		$ 1,147,000	$ 1,609,000
Stock issued from exercise of stock options and warrants (in shares)		117,898	329,013
Pre-funded Warrants
Class of Stock [Line Items]
Share price (in USD per share)	$ 20.02
At The Market (ATM) Program
Class of Stock [Line Items]
Stock offering ATM program, commission percent		1.70%
Stock offering ATM program, notice period for termination		10 days
Aggregate offering price for ATM program		$ 50,000,000
Oxford EWB Loan
Class of Stock [Line Items]
Shares of common stock to purchase by warrant (in shares)				100,602
Warrant exercise price (in USD per share)				$ 9.94

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)		1,475,300
Granted (USD per share)		$ 11.55
Unrecognized compensation expense		$ 24.9
Shares available for future grants		1,061,046
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)	1,400,000
Granted (USD per share)	$ 11.55

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 3,276	$ 4,422
Research and Development Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,474	2,155
Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,802	$ 2,267

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Employee Option Grant Estimated on Date of Grant (Details) - Equity Option - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated weighted-average fair value (USD per share)	$ 7.64	$ 6.62
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility	75.00%	74.00%
Weighted Average
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term, in years	6 years	5 years 8 months 12 days
Risk-free interest rate	2.06%	1.44%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Options Outstanding
Beginning balance (shares) | shares	9,809,374
Granted (shares) | shares	1,475,300
Exercised (shares) | shares	(117,898)
Forfeited (shares) | shares	(242,714)
Ending balance (shares) | shares	10,924,062
Vested and expected to vest (shares) | shares	10,510,973
Exercisable (shares) | shares	6,817,595
Weighted-Average Exercise Price per Share
Beginning balance (USD per share) | $ / shares	$ 9.66
Granted (USD per share) | $ / shares	11.55
Exercised (USD per share) | $ / shares	9.74
Forfeited (USD per share) | $ / shares	10.44
Ending balance (USD per share) | $ / shares	9.88
Vested and expected to vest (USD per share) | $ / shares	9.82
Exercisable (USD per share) | $ / shares	$ 8.97
Weighted- Average Remaining Contractual Life
Balance (in years)	7 years 3 months 10 days
Vested and expected to vest (in years)	7 years 2 months 15 days
Exercisable (in years)	6 years 1 month 6 days
Aggregate Intrinsic Value
Balance | $	$ 58,215
Vested and expected to vest | $	56,632
Exercisable | $	$ 42,519