Omeros (OMER) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,559,816

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 2,883	$ 3,394
Short-term investments	85,521	80,355
Receivables, net	1,529	17,144
Inventory	235	443
Prepaid expense	6,336	7,036
Total current assets	96,504	108,372
Property and equipment, net	2,436	2,121
Restricted investments	5,779	5,835
Advanced payments, non-current	1,630	0
Total assets	106,349	116,328
Accounts payable
Accounts payable	11,850	6,691
Accrued expenses	11,984	19,126
Current portion of lease financing obligations	608	490
Total current liabilities	24,442	26,307
Notes payable and lease financing obligations, net	129,750	84,117
Deferred rent	8,454	8,718
Commitments and contingencies (Note 7)	0	0
Shareholders’ deficit:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized; none issued and outstanding at June 30, 2018 and December 31, 2017, respectively	0	0
Common stock, par value $0.01 per share, 150,000,000 shares authorized; 48,498,055 and 48,211,226 issued and outstanding at June 30, 2018 and December 31, 2017, respectively	485	482
Additional paid-in capital	530,336	520,072
Accumulated deficit	(587,118)	(523,368)
Total shareholders’ deficit	(56,297)	(2,814)
Total liabilities and shareholders’ deficit	$ 106,349	$ 116,328

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
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	48,498,055	48,211,226
Common stock, outstanding shares	48,498,055	48,211,226

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Product sales, net	$ 1,655	$ 17,151	$ 3,244	$ 29,408
Cost of product sales
Cost of product sales	116	157	319	429
Research and development	19,412	13,137	37,551	25,377
Selling, general and administrative	12,744	15,796	23,678	28,267
Total costs and expenses	32,272	29,090	61,548	54,073
Loss from operations	(30,617)	(11,939)	(58,304)	(24,665)
Interest expense	(3,676)	(2,723)	(6,502)	(5,386)
Other income	597	303	1,056	603
Net loss	(33,696)	(14,359)	(63,750)	(29,448)
Comprehensive loss	$ (33,696)	$ (14,359)	$ (63,750)	$ (29,448)
Basic and diluted net loss per share (USD per share)	$ (0.70)	$ (0.33)	$ (1.32)	$ (0.67)
Weighted-average shares used to compute basic and diluted net loss per share (shares)	48,384,460	44,037,471	48,333,610	43,933,022

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net loss	$ (63,750)	$ (29,448)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	5,966	6,408
Non-cash interest expense	2,503	2,012
Depreciation and amortization	429	234
Changes in operating assets and liabilities:
Receivables	15,615	(7,038)
Inventory	208	223
Prepaid expenses and other assets	(930)	(1,680)
Accounts payable, accrued expenses and other	(2,247)	8,428
Net cash used in operating activities	(42,206)	(20,861)
Investing activities:
Purchases of property and equipment	(386)	(316)
Purchases of investments	(45,166)	(1,102)
Proceeds from the sale and maturities of investments	40,000	17,928
Net cash (used in) provided by investing activities	(5,552)	16,510
Financing activities:
Proceeds from borrowings under notes payable	44,550	0
Proceeds upon exercise of stock options	2,877	5,637
Release of restricted investments	56	0
Payments on lease financing obligations	(236)	(124)
Net cash provided by financing activities	47,247	5,513
Net (decrease) increase in cash and cash equivalents	(511)	1,162
Cash and cash equivalents at beginning of period	3,394	2,224
Cash and cash equivalents at end of period	2,883	3,386
Supplemental cash flow information
Cash paid for interest	3,999	3,372
Conversion of accrued interest to notes payable	1,909	1,628
Property acquired under capital lease	$ 358	$ 163

Organization and Significant Ac

Organization and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Organization and Significant Accounting Policies Organization We are a commercial-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market as well as orphan indications targeting inflammation, complement-mediated diseases and disorders of the central nervous system. Our first drug product, OMIDRIA, is marketed in the United States (U.S.) 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 June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2017 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, 2017 , which was filed with the U.S. Securities and Exchange Commission (SEC) on March 1, 2018. Going Concern On an interim and annual basis we are required to assess our ability to continue as a going concern for one year after the date the financial statements are issued using rules defined by ASC No. 205-40 - Going Concern (the Standard). As required by the Standard, management’s evaluation shall initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. In the second step of this evaluation, management’s assumptions and plans are derived according to restrictions and definitions in the Standard. As such, for purposes of this exercise, the following assumptions (which are discussed in further detail following this summary) were made: • Limited cash receipts from sales of OMIDRIA. Even though we have received an extension of transitional pass-through reimbursement for OMIDRIA for a period of two years beginning October 1, 2018, we are unable at this time to predict accurately revenue from sales of OMIDRIA once transitional pass-through reimbursement begins. In addition, sales of OMIDRIA are generally made with 90-day collection terms and, therefore, minimal OMIDRIA cash receipts were included for this exercise prior to January 2019; and • No public or private equity transactions or partnering revenues can be considered for purposes of this exercise in the absence of any existing or committed arrangements to raise additional capital or of any existing or consummated partnerships. In performing the first step of the assessment, we concluded that the following conditions raise substantial doubt about our ability to meet our financial obligations as they become due. As of June 30, 2018 , we had $88.4 million in cash, cash equivalents and short-term investments, $1.5 million of accounts receivable and $24.4 million in current liabilities. We have a history of net losses ( $63.8 million for the six months ended June 30, 2018 ) and use of cash for operations ( $42.2 million for the six months ended June 30, 2018 ). In addition, on January 1, 2018, transitional pass-through reimbursement for our only commercial product, OMIDRIA, which allowed for separate payment ( i.e. , outside the packaged procedural payment) under Medicare Part B expired and is not scheduled to be reinstated until October 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 the financial statements are issued. In performing this second step of the assessment, we are limited to those assumptions listed above and the restrictions and definitions in the Standard. Consequently, based on this assessment performed using the associated limitations required by the Standard, we have concluded there is substantial doubt about our ability to continue as a going concern through August 9, 2019. If we are unable to raise additional equity, debt or partnering capital when needed, or upon acceptable terms, such failure would have a significant negative impact on our financial condition. Should it be necessary to manage our operating expenses, we would reduce our projected cash requirements through reduction of our expenses by delaying clinical trials, reducing selected research and development efforts, or implementing other restructuring activities. The accompanying 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 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. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 (Topic 606) “Revenue from Contracts with Customers,” which requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 on January 1, 2018 using the modified retrospective transition method. Once we determine that an arrangement is within the scope of Topic 606 and we believe it is probable that we will collect the consideration we are entitled to in exchange for OMIDRIA product sales, we perform the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. Upon adoption, we evaluated our contracts with customers and determined the adoption of the standard did not change the timing or the amounts of our previously recognized revenues. Product Sales, Net We generally record revenue from product sales when the product is delivered to our wholesalers. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, rebates and purchase volume discounts. 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. The Centers for Medicare and Medicaid Services (CMS) initially granted transitional pass-through reimbursement status for OMIDRIA through December 31, 2017. Pass-through status for OMIDRIA allowed for reimbursement payment to Ambulatory Surgery Centers (ASCs) and hospitals using OMIDRIA in procedures involving patients covered by Medicare Part B. In March 2018, the Consolidated Appropriations Act, 2018 (the Appropriations Act) was signed into law, which among other things extended pass-through reimbursement status for certain drugs, including OMIDRIA, for a two-year period beginning October 1, 2018. For the period January 1, 2018 through September 30, 2018, OMIDRIA is not subject to separate reimbursement for procedures involving patients covered by Medicare Part B. Advanced Payments We have various agreements with third parties that require us to pay part of the contractually due amounts in advance of receiving goods and services. These agreements relate primarily to clinical and manufacturing activities. Amounts paid in advance of services to be delivered to us beyond 12 months of the balance sheet date are recorded as non-current assets. 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, stock-based compensation expense and accruals for clinical trials, manufacturing of drug product and clinical drug supply 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 Pronouncements We adopted ASU 2018-05 issued by the FASB in March 2018 related to the Tax Cuts and Jobs Act (Tax Act) that was enacted in December 2017. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21.0%. The standard requires that we record and disclose any provisional amounts related to the Tax Act. We recorded and disclosed the provisional impact to our deferred tax balance in our Annual Report on Form 10-K for the year ended December 31, 2017 that was filed with the SEC on March 1, 2018. We are still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these assets and liabilities or potentially give rise to new deferred tax assets and liabilities. In May 2016, the FASB issued ASU 2017-09 related to stock-based compensation, which provides guidance on the accounting for changes to the terms and conditions of stock-based payment arrangement, or modifications. We adopted the guidance January 1, 2018 and the adoption did not have a material impact on our stock-based compensation expense. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new 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 expect to adopt the standard on January 1, 2019 and are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
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 six months ended June 30, 2018 and 2017 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: June 30, 2018 2017 Outstanding options to purchase common stock 10,542,066 10,334,730 Outstanding warrants to purchase common stock 300,602 100,602 Total 10,842,668 10,435,332

Accounts Receivable, Net

Accounts Receivable, Net	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net Accounts receivable, net consist of the following: June 30, December 31, (In thousands) Trade receivables, net $ 1,500 $ 17,079 Sublease and other receivables 29 65 Total accounts receivables net $ 1,529 $ 17,144

Fair-Value Measurements

Fair-Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair-Value Measurements	Fair-Value Measurements As of June 30, 2018 and December 31, 2017 , all investments were classified as short-term and available-for-sale on the accompanying Condensed Consolidated Balance Sheets. Investment income, which was included as a component of other income, consists of interest earned. 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: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,779 $ — $ — $ 5,779 Money-market funds classified as short-term investments 85,521 — — 85,521 Total $ 91,300 $ — $ — $ 91,300 December 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 80,355 — — 80,355 Total $ 86,190 $ — $ — $ 86,190 Cash held in demand deposit accounts of $2.9 million and $3.4 million is excluded from our fair-value hierarchy disclosure as of June 30, 2018 and December 31, 2017 , respectively. There were no unrealized gains or losses associated with our short-term investments as of June 30, 2018 or December 31, 2017 . 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.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, (In thousands) Contract research and development $ 4,949 $ 4,251 Employee compensation 2,331 2,178 Consulting and professional fees 2,185 1,758 Sales rebates, fees and discounts 909 6,561 Clinical trials 546 1,026 ASC/hospital product return liability — 2,350 Other accruals 1,064 1,002 Total accrued liabilities $ 11,984 $ 19,126

Notes Payable and Lease Financi

Notes Payable and Lease Financing Obligations	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Notes Payable and Lease Financing Obligations	Notes Payable and Lease Financing Obligations Notes payable and lease financing obligations consist of the following: June 30, December 31, (In thousands) Notes payable $ 130,740 $ 83,831 Lender facility fee payable upon maturity 6,537 4,192 Lease financing obligations 1,421 1,300 Notes payable, facility fee and lease financing obligations 138,698 89,323 Unamortized debt discount (6,827 ) (3,527 ) Unamortized debt issuance costs (1,513 ) (1,189 ) Current portion of lease financing obligations (608 ) (490 ) Non-current portion of notes payable and lease financing obligations, net $ 129,750 $ 84,117 In October 2016, we entered into the CRG Loan Agreement which permits 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, in May 2018, we borrowed the remaining $45.0 million available to us under the CRG Loan Agreement. The CRG Loan Agreement accrues interest at an annual rate of 12.25% ( 4.00% of which can be deferred at our option through December 31, 2020 by adding such amount to the aggregate principal amount). As of June 30, 2018 , as allowed under the CRG Loan Agreement, we have deferred $5.7 million ( $1.9 million for the six months ended June 30, 2018 ) of accrued interest 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 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 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, and 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. After 2018, the CRG Loan Agreement requires us to achieve either (a) certain minimum net revenue amounts through the end of 2021, which is $75.0 million for the 2019 calendar year, or (b) a minimum market capitalization threshold equal to the product of 3.0 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 ( i.e., $375.0 million ). In the event we do not achieve either the minimum revenue amount or the minimum market capitalization threshold for a year, we can satisfy the requirement by raising additional funds through an equity or subordinated debt issuance and using the proceeds to pay down the loan balance by an amount equal to the difference between the minimum revenue amount for such year and the actual revenue amount for such year. 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, 2017). If there is an event of default the lenders may have the right to accelerate all 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 June 30, 2018 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Development Milestones and Product Royalties We have licensed a variety of intellectual property from third parties that we are currently developing or may develop in the future. These licenses may require milestone payments during the clinical development processes as well as low single to low double-digit royalties on the net income or net sales of the product. Contracts We have various agreements with third parties that collectively require payment of termination fees totaling $14.2 million as of June 30, 2018 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 6). Litigation In May 2017, we received Notice Letters from Sandoz Inc. (Sandoz) and Lupin Ltd. and Lupin Pharmaceuticals, Inc. (collectively, Lupin), respectively, that Sandoz and Lupin had each filed an Abbreviated New Drug Application (ANDA) seeking approval from the Food and Drug Administration (FDA) to market a generic version of OMIDRIA prior to the expiration our patents covering OMIDRIA. In June 2017, we filed patent infringement lawsuits against Sandoz and Lupin. In May 2018, we entered into a settlement agreement and consent judgment with Lupin resolving our patent litigation against Lupin and, in July 2018, our patent infringement lawsuit against Sandoz was dismissed by stipulation of the parties based on Sandoz’s revision of its Patent and Exclusivity Certification to a Paragraph III certification with respect to the patents-in-suit. As a result of an earlier settlement in October 2017 involving substantially similar assertions with Par Pharmaceutical, Inc. and its subsidiary, Par Sterile Products, LLC (collectively, Par), the Lupin settlement agreement and consent judgment and the Sandoz dismissal, all of our litigation with ANDA filers has been concluded. Based on the Par and Lupin settlement agreements and Sandoz’s conversion to a Paragraph III certification, the earliest ANDA entry date for any of the three generic manufacturers is April 2032 unless otherwise subsequently authorized pursuant to the settlement agreements.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Common Stock For the six months ended June 30, 2018 , we received proceeds of $2.9 million upon the exercise of stock options which resulted in the issuance of 286,829 shares of common stock. For the six months ended June 30, 2017 , we received proceeds of $5.6 million upon the exercise of stock options and warrants which resulted in the issuance of 628,470 shares of common stock. Warrants In connection with the April 2018 amendment to the CRG Loan Agreement, we issued warrants to purchase up to 200,000 shares of our common stock with an exercise price of $23.00 per share and total fair value of $1.4 million . The warrants have a five -year term.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense includes the 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 Six Months Ended 2018 2017 2018 2017 (In thousands) (In thousands) Research and development $ 1,185 $ 1,263 $ 2,385 $ 2,737 Selling, general and administrative 1,815 1,869 3,581 3,671 Total $ 3,000 $ 3,132 $ 5,966 $ 6,408 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 as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Estimated weighted-average fair value $ 9.78 $ 12.25 $ 9.77 $ 8.18 Weighted-average assumptions Expected volatility 77 % 74 % 77 % 74 % Expected term, in years 6.0 6.0 6.0 6.0 Risk-free interest rate 2.67 % 1.95 % 2.66 % 2.01 % 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, 2017 9,657,259 $ 10.39 Granted 1,574,807 14.28 Exercised (286,829 ) 10.03 Forfeited (403,171 ) 13.58 Balance at June 30, 2018 10,542,066 $ 10.86 6.69 $ 78,273 Vested and expected to vest at June 30, 2018 10,192,265 $ 10.78 6.61 $ 76,460 Exercisable at June 30, 2018 7,303,380 $ 9.89 5.65 $ 61,035 At June 30, 2018 , there were 3,238,686 unvested options outstanding that will vest over a weighted-average period of 2.84 years and 2,342,402 shares were available to grant. Excluding non-employee stock options, the total estimated compensation expense to be recognized on our unvested options is $17.2 million .

Organization and Significant 15

Organization and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 includes all adjustments, which include normal recurring adjustments, necessary to present fairly our interim financial information. The Condensed Consolidated Balance Sheet at December 31, 2017 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, 2017 , which was filed with the U.S. Securities and Exchange Commission (SEC) on March 1, 2018.
Product Sales, Net	Product Sales, Net We generally record revenue from product sales when the product is delivered to our wholesalers. Product sales are recorded net of wholesaler distribution fees and estimated chargebacks, rebates and purchase volume discounts. 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. The Centers for Medicare and Medicaid Services (CMS) initially granted transitional pass-through reimbursement status for OMIDRIA through December 31, 2017. Pass-through status for OMIDRIA allowed for reimbursement payment to Ambulatory Surgery Centers (ASCs) and hospitals using OMIDRIA in procedures involving patients covered by Medicare Part B. In March 2018, the Consolidated Appropriations Act, 2018 (the Appropriations Act) was signed into law, which among other things extended pass-through reimbursement status for certain drugs, including OMIDRIA, for a two-year period beginning October 1, 2018. For the period January 1, 2018 through September 30, 2018, OMIDRIA is not subject to separate reimbursement for procedures involving patients covered by Medicare Part B.
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, stock-based compensation expense and accruals for clinical trials, manufacturing of drug product and clinical drug supply 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 Pronouncements and Recent Accounting Pronouncements	Recently Adopted Pronouncements We adopted ASU 2018-05 issued by the FASB in March 2018 related to the Tax Cuts and Jobs Act (Tax Act) that was enacted in December 2017. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21.0%. The standard requires that we record and disclose any provisional amounts related to the Tax Act. We recorded and disclosed the provisional impact to our deferred tax balance in our Annual Report on Form 10-K for the year ended December 31, 2017 that was filed with the SEC on March 1, 2018. We are still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these assets and liabilities or potentially give rise to new deferred tax assets and liabilities. In May 2016, the FASB issued ASU 2017-09 related to stock-based compensation, which provides guidance on the accounting for changes to the terms and conditions of stock-based payment arrangement, or modifications. We adopted the guidance January 1, 2018 and the adoption did not have a material impact on our stock-based compensation expense. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new 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 expect to adopt the standard on January 1, 2019 and are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
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: June 30, 2018 2017 Outstanding options to purchase common stock 10,542,066 10,334,730 Outstanding warrants to purchase common stock 300,602 100,602 Total 10,842,668 10,435,332

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Receivables	Accounts receivable, net consist of the following: June 30, December 31, (In thousands) Trade receivables, net $ 1,500 $ 17,079 Sublease and other receivables 29 65 Total accounts receivables net $ 1,529 $ 17,144

Fair-Value Measurements (Tables

Fair-Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
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: June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money-market funds classified as non-current restricted cash and investments $ 5,779 $ — $ — $ 5,779 Money-market funds classified as short-term investments 85,521 — — 85,521 Total $ 91,300 $ — $ — $ 91,300 December 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 80,355 — — 80,355 Total $ 86,190 $ — $ — $ 86,190

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following: June 30, December 31, (In thousands) Contract research and development $ 4,949 $ 4,251 Employee compensation 2,331 2,178 Consulting and professional fees 2,185 1,758 Sales rebates, fees and discounts 909 6,561 Clinical trials 546 1,026 ASC/hospital product return liability — 2,350 Other accruals 1,064 1,002 Total accrued liabilities $ 11,984 $ 19,126

Notes Payable and Lease Finan20

Notes Payable and Lease Financing Obligations (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of notes payable and lease financing obligations	Notes payable and lease financing obligations consist of the following: June 30, December 31, (In thousands) Notes payable $ 130,740 $ 83,831 Lender facility fee payable upon maturity 6,537 4,192 Lease financing obligations 1,421 1,300 Notes payable, facility fee and lease financing obligations 138,698 89,323 Unamortized debt discount (6,827 ) (3,527 ) Unamortized debt issuance costs (1,513 ) (1,189 ) Current portion of lease financing obligations (608 ) (490 ) Non-current portion of notes payable and lease financing obligations, net $ 129,750 $ 84,117

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense includes the 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 Six Months Ended 2018 2017 2018 2017 (In thousands) (In thousands) Research and development $ 1,185 $ 1,263 $ 2,385 $ 2,737 Selling, general and administrative 1,815 1,869 3,581 3,671 Total $ 3,000 $ 3,132 $ 5,966 $ 6,408
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following assumptions were applied to employee and director stock option grants as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Estimated weighted-average fair value $ 9.78 $ 12.25 $ 9.77 $ 8.18 Weighted-average assumptions Expected volatility 77 % 74 % 77 % 74 % Expected term, in years 6.0 6.0 6.0 6.0 Risk-free interest rate 2.67 % 1.95 % 2.66 % 2.01 % 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, 2017 9,657,259 $ 10.39 Granted 1,574,807 14.28 Exercised (286,829 ) 10.03 Forfeited (403,171 ) 13.58 Balance at June 30, 2018 10,542,066 $ 10.86 6.69 $ 78,273 Vested and expected to vest at June 30, 2018 10,192,265 $ 10.78 6.61 $ 76,460 Exercisable at June 30, 2018 7,303,380 $ 9.89 5.65 $ 61,035

Organization and Significant 22

Organization and Significant Accounting Policies (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Accounting Policies [Abstract]
Number of operating segments | segment			1
Cash, cash equivalents and short-term investments	$ 88,400		$ 88,400
Accounts receivable outstanding	1,529		1,529		$ 17,144
Current liabilities	24,442		24,442		$ 26,307
Net loss	$ 33,696	$ 14,359	63,750	$ 29,448
Net cash used in operating activities			$ 42,206	$ 20,861

Net Loss Per Share - Calculatio

Net Loss Per Share - Calculation of Historical Outstanding Dilutive Securities Not Included in Diluted Loss Per Share (Detail) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding dilutive securities not included in diluted loss per share calculation	10,842,668	10,435,332
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	10,542,066	10,334,730
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	300,602	100,602

Accounts Receivable, Net - Gran

Accounts Receivable, Net - Grant and Other Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Trade receivables, net	$ 1,500	$ 17,079
Sublease and other receivables	29	65
Total accounts receivables net	$ 1,529	$ 17,144

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	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	$ 91,300	$ 86,190
Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	5,779	5,835
Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	85,521	80,355
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total	91,300	86,190
Level 1 | Restricted Cash, Noncurrent
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	5,779	5,835
Level 1 | Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money-market funds, fair value disclosure	85,521	80,355
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 ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Cash excluded from fair value hierarchy disclosure	$ 2,900,000	$ 3,400,000
Unrealized gain (loss) on investments	$ 0	$ 0

Accrued Liabilities - Accrued L

Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Contract research and development	$ 4,949	$ 4,251
Employee compensation	2,331	2,178
Consulting and professional fees	2,185	1,758
Sales rebates, fees and discounts	909	6,561
Clinical trials	546	1,026
ASC/hospital product return liability	0	2,350
Other accruals	1,064	1,002
Total accrued liabilities	$ 11,984	$ 19,126

Notes Payable and Lease Finan28

Notes Payable and Lease Financing Obligations Schedule of Notes Payable and Lease Financing Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Notes payable	$ 130,740	$ 83,831
Lender facility fee payable upon maturity	6,537	4,192
Lease financing obligations	1,421	1,300
Notes payable, facility fee and lease financing obligations	138,698	89,323
Unamortized debt discount	(6,827)	(3,527)
Unamortized debt issuance costs	(1,513)	(1,189)
Current portion of lease financing obligations	(608)	(490)
Non-current portion of notes payable and lease financing obligations, net	$ 129,750	$ 84,117

Notes Payable and Lease Finan29

Notes Payable and Lease Financing Obligations (Detail) - CRG Loan	6 Months Ended
	Jun. 30, 2018USD ($)	Dec. 31, 2019USD ($)	May 31, 2018USD ($)	Nov. 30, 2016USD ($)
Debt Instrument [Line Items]
Debt issued				$ 80,000,000
Remaining borrowing capacity			$ 45,000,000
Accrued interest rate				12.25%
Deferred interest rate percentage				4.00%
Deferred debt costs	$ 5,700,000
Increase in principal amount of debt outstanding from deferred interest	$ 1,900,000
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	3
Debt instrument, covenant compliance, market capitalization	$ 375,000,000
Increase in interest rate if an event of default occurs				4.00%
Scenario, Forecast
Debt Instrument [Line Items]
Debt instrument, covenant compliance, minimum net revenue amount		$ 75,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contract termination fees	$ 14.2

Shareholders' Equity (Detail)

Shareholders' Equity (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Proceeds upon exercise of stock options		$ 2,877	$ 5,637
Stock issued from exercise of stock options and warrants (in shares)		286,829	628,470
Shares of common stock to purchase by warrant (in shares)	200,000
Warrant exercise price (in USD per share)	$ 23
Fair value	$ 1,400
Warrant term	5 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 3,000	$ 3,132	$ 5,966	$ 6,408
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,185	1,263	2,385	2,737
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,815	$ 1,869	$ 3,581	$ 3,671

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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated weighted-average fair value (USD per share)	$ 9.78	$ 12.25	$ 9.77	$ 8.18
Weighted Average
Weighted-average assumptions
Expected volatility	77.00%	74.00%	77.00%	74.00%
Expected term, in years	6 years	6 years	6 years	6 years
Risk-free interest rate	2.67%	1.95%	2.66%	2.01%
Expected dividend yield	0.00%	0.00%	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	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Options Outstanding
Beginning balance (shares) | shares	9,657,259
Granted (shares) | shares	1,574,807
Exercised (shares) | shares	(286,829)
Forfeited (shares) | shares	(403,171)
Ending balance (shares) | shares	10,542,066
Vested and expected to vest (shares) | shares	10,192,265
Exercisable (shares) | shares	7,303,380
Weighted-Average Exercise Price per Share
Beginning balance (USD per share) | $ / shares	$ 10.39
Granted (USD per share) | $ / shares	14.28
Exercised (USD per share) | $ / shares	10.03
Forfeited (USD per share) | $ / shares	13.58
Ending balance (USD per share) | $ / shares	10.86
Vested and expected to vest (USD per share) | $ / shares	10.78
Exercisable (USD per share) | $ / shares	$ 9.89
Weighted- Average Remaining Contractual Life
Balance (in years)	6 years 8 months 8 days
Vested and expected to vest (in years)	6 years 7 months 9 days
Exercisable (in years)	5 years 7 months 24 days
Aggregate Intrinsic Value
Balance | $	$ 78,273
Vested and expected to vest | $	76,460
Exercisable | $	$ 61,035

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unvested options outstanding (shares)	3,238,686
Period for recognition	2 years 10 months 2 days
Shares available for future grants (shares)	2,342,402
Unrecognized compensation expense | $	$ 17.2