Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001285819 | |
Entity Registrant Name | OMEROS CORP | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34475 | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1663741 | |
Entity Address, Address Line One | 201 Elliott Avenue West | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98119 | |
City Area Code | 206 | |
Local Phone Number | 676-5000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | OMER | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,944,159 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,831 | $ 7,105 |
Short-term investments | 228,503 | 164,743 |
OMIDRIA contract royalty asset, short-term | 29,519 | 29,373 |
Receivables | 7,642 | 8,096 |
Prepaid expense and other assets | 13,463 | 8,581 |
Total current assets | 280,958 | 217,898 |
OMIDRIA contract royalty asset | 135,909 | 138,736 |
Right of use assets | 17,767 | 18,631 |
Property and equipment, net | 1,804 | 1,950 |
Restricted investments | 1,054 | 1,054 |
Total assets | 437,492 | 378,269 |
Current liabilities: | ||
Accounts payable | 6,182 | 7,712 |
Accrued expenses | 28,402 | 31,868 |
Current portion of OMIDRIA royalty obligation | 19,130 | 8,576 |
Current portion of lease liabilities | 5,342 | 5,160 |
Total current liabilities | 59,056 | 53,316 |
Convertible senior notes, net | 213,463 | 213,155 |
OMIDRIA royalty obligation, non-current | 217,459 | 116,550 |
Lease liabilities, non-current | 16,754 | 18,143 |
Other accrued liabilities, non-current | 2,088 | 2,088 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity (deficit): | ||
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized; none issued and outstanding at March 31, 2024 and December 31, 2023. | 0 | 0 |
Common stock, par value $0.01 per share, 150,000,000 shares authorized at March 31, 2024 and December 31, 2023; 57,942,695 and 61,128,597 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively. | 579 | 611 |
Additional paid-in capital | 718,807 | 727,936 |
Accumulated deficit | (790,714) | (753,530) |
Total shareholders’ deficit | (71,328) | (24,983) |
Total liabilities and shareholders’ equity (deficit) | $ 437,492 | $ 378,269 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 57,942,695 | 61,128,597 |
Common stock, outstanding (in shares) | 57,942,695 | 61,128,597 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Costs and expenses: | ||
Research and development | $ 26,770 | $ 24,610 |
Selling, general and administrative | 12,264 | 11,103 |
Total costs and expenses | 39,034 | 35,713 |
Loss from operations | (39,034) | (35,713) |
Interest expense | (8,231) | (7,933) |
Interest and other income | 3,415 | 3,963 |
Net loss from continuing operations | (43,850) | (39,683) |
Net income from discontinued operations, net of tax | 6,666 | 5,982 |
Net loss | $ (37,184) | $ (33,701) |
Basic and diluted net income (loss) per share: | ||
Net loss from continuing operations (in dollars per share) | $ (0.75) | $ (0.63) |
Net income from discontinued operations (in dollars per share) | 0.12 | 0.09 |
Net loss (in dollars per share) | $ (0.63) | $ (0.54) |
Weighted-average shares used to compute basic and diluted net income (loss) per share (in shares) | 58,800,716 | 62,828,765 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2022 | 62,828,765 | |||
Balance at Dec. 31, 2022 | $ 628 | $ 720,773 | $ (635,717) | $ 85,684 |
Stock-based compensation expense | 0 | 2,953 | 0 | 2,953 |
Net loss | $ 0 | 0 | (33,701) | (33,701) |
Balance (in shares) at Mar. 31, 2023 | 62,828,765 | |||
Balance at Mar. 31, 2023 | $ 628 | 723,726 | (669,418) | 54,936 |
Balance (in shares) at Dec. 31, 2023 | 61,128,597 | |||
Balance at Dec. 31, 2023 | $ 611 | 727,936 | (753,530) | $ (24,983) |
Issuance of common stock upon exercise of stock options (in shares) | 9,339 | 9,339 | ||
Issuance of common stock upon exercise of stock options | $ 0 | 32 | 0 | $ 32 |
Repurchases of common stock (in shares) | (3,195,241) | |||
Repurchases of common stock | $ (32) | (11,819) | 0 | (11,851) |
Stock-based compensation expense | 0 | 2,658 | 0 | 2,658 |
Net loss | $ 0 | 0 | (37,184) | (37,184) |
Balance (in shares) at Mar. 31, 2024 | 57,942,695 | |||
Balance at Mar. 31, 2024 | $ 579 | $ 718,807 | $ (790,714) | $ (71,328) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net loss | $ (37,184) | $ (33,701) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,658 | 2,953 |
Non-cash interest on convertible notes and royalty obligations | 1,387 | 477 |
Depreciation and amortization | 204 | 186 |
Non-cash interest earned on OMIDRIA contract royalty asset | (4,343) | (3,925) |
Remeasurement on OMIDRIA contract royalty asset | (2,339) | (1,677) |
Accretion on U.S. government treasury bills, net | (1,893) | (2,316) |
Changes in operating assets and liabilities: | ||
OMIDRIA contract royalty asset | 9,363 | 9,203 |
Receivables | 454 | 203,188 |
Prepaid expenses and other | (5,090) | (582) |
Accounts payable and accrued expense | (4,997) | 733 |
Net cash provided by (used in) operating activities | (41,780) | 174,539 |
Investing activities: | ||
Purchases of investments and other | (487,554) | (523,941) |
Proceeds from the sale and maturities of investments | 425,687 | 342,610 |
Purchases of property and equipment | (58) | 0 |
Net cash used in investing activities | (61,925) | (181,331) |
Financing activities: | ||
Proceeds from sale of future royalties | 115,525 | 0 |
Repurchases on common stock | (11,851) | 0 |
Principal payments | (5,141) | (278) |
Principal payments on finance lease obligations | (134) | (110) |
Proceeds upon exercise of stock options | 32 | 0 |
Net cash provided by (used in) financing activities | 98,431 | (388) |
Net decrease in cash and cash equivalents | (5,274) | (7,180) |
Cash and cash equivalents at beginning of period | 7,105 | 11,009 |
Cash and cash equivalents at end of period | 1,831 | 3,829 |
Supplemental cash flow information | ||
Cash paid for interest | $ 7,152 | $ 7,933 |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 Organization and Basis of Presentation General Omeros Corporation (“Omeros,” the “Company” or “we”) is a clinical-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market as well as orphan indications targeting immunologic disorders including complement-mediated diseases, cancers, and addictive and compulsive disorders. Our clinical-stage development programs include: narsoplimab, our antibody targeting mannan-binding lectin-associated serine protease 2 2” OMS1029, 2; OMS906, 3 3” OMS527, 7 “PDE7” Clinical development of narsoplimab is currently focused primarily on hematopoietic stem cell transplant-associated thrombotic microangiopathy (“TA-TMA”). We successfully completed a pivotal clinical trial for narsoplimab in TA-TMA and previously submitted to FDA a biologics license application (“BLA”) seeking marketing approval for narsoplimab in this indication. In late 2021, 2022. no Our lectin pathway program also includes OMS1029, 2. 2 1 OMS1029 2023 1 2024. OMS1029 no 2 OMS1029. Our pipeline of clinical-stage complement-targeted therapeutic candidates also includes OMS906, 3, three 2 OMS906 first not second third 2 OMS906 two 2 2 OMS906 C3G, Our phosphodiesterase 7 “PDE7” OMS527, PDE7 PDE7 PDE7 April 2023, PDE7 1 NIDA awarded the grant to Omeros for a total of $6.69 million over three OMS527 OMS527 We also have various programs in preclinical research and development. OMIDRIA Sale and Royalty Monetization Transactions On December 23, 2021, 7 On September 30, 2022, On February 1, 2024, January 1, 2024, January 1, 2024 December 31, 2031. ( 8 Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of Omeros and our wholly owned subsidiaries. All inter-company transactions have been eliminated. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Liquidity and Capital Resources As of March 31, 2024 March 31, 2024, Historically, we have incurred net losses from continuing operations and negative operating cash flows. We have not February 2026 ( “2026 twelve may may one 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 OMIDRIA contract royalty asset valuation, stock-based compensation expense, and accruals for clinical trials and manufacturing of drug product. 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. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 Significant Accounting Policies Discontinued Operations We review the presentation of planned or completed business dispositions in the condensed consolidated financial statements based on the available information and events that have occurred. The review consists of evaluating whether the business meets the definition of a component for which the operations and cash flows are clearly distinguishable from the other components of the business and, if so, whether it is anticipated that, after the disposal, the cash flows of the component would be eliminated from continuing operations and whether the disposition represents a strategic shift that has a major effect on operations and financial results. Planned or completed business dispositions are presented as discontinued operations when all the criteria described above are met. For those divestitures that qualify as discontinued operations, all comparative periods presented are reclassified in the condensed consolidated balance sheets. Additionally, the results of operations of a discontinued operation are reclassified to income from discontinued operations, net of tax, for all periods presented in the condensed consolidated statements of operations and comprehensive income (loss). Results of discontinued operations include all revenues and expenses directly derived from such businesses. General corporate overhead is not OMIDRIA Royalties, Milestones and Contract Royalty Assets We have rights to receive future royalties from Rayner on OMIDRIA net sales at royalty rates that vary based on geography and certain regulatory contingencies. Therefore, future OMIDRIA royalties are treated as variable consideration. The sale of OMIDRIA qualified as an asset sale under GAAP. To measure the OMIDRIA contract royalty asset, we use the expected value approach which is the sum of the discounted probability-weighted royalty payments we would receive using a range of potential outcomes, to the extent that it is probable that a significant reversal in the amount of cumulative income recognized will not no 2035. OMIDRIA Royalty Obligation On September 30, 2022, February 1, 2024, December 31, 2031 December 31, 2031 To the extent our estimates of future royalties differ materially from previous estimates, we will adjust the carrying amount of the liability for future OMIDRIA royalties to the present value of the revised estimated cash flows, discounted at the implied effective interest rate of 10.3% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations (see “Note 8 Inventory We expense inventory costs related to product candidates as research and development expenses until regulatory approval is reasonably assured in the U.S. or the European Union (“EU”). Once approval is reasonably assured, costs, including amounts related to third Right-of-Use Assets and Related Lease Liabilities We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not We record finance lease obligations as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of finance lease obligations is included in interest expense and recognized using the effective interest method over the lease term. We account for leases with initial terms of 12 Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes option-pricing model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected term. Compensation expense is recognized over the requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Common Stock Repurchases We may not Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not not not Financial Instruments and Concentrations of Credit Risk F inancial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. Cash and cash equivalents are deposited in checking and sweep accounts at financial institutions. At times, our cash and cash equivalents balance held at a financial institution may not not third March 31, 2024, no |
Note 3 - Net Loss Per Share
Note 3 - Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 3 Net Loss Per Share Basic net income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period using the treasury stock method. In periods where we have a net loss from continuing operations but overall net income, we do not Potentially dilutive securities are as follows: Three Months Ended March 31, 2024 2023 2026 Notes convertible to common stock (1) 11,679,459 12,172,008 2023 Notes convertible to common stock (2) — 4,941,739 Outstanding options to purchase common stock 97,346 17,454 Outstanding restricted stock units (3) — 92,250 Total potentially dilutive shares excluded from net loss per share 11,776,805 17,223,451 ( 1 The 2026 6 ( 2 The 2023 November 15, 2023. ( 3 The outstanding restricted stock units were vested and converted to shares of common stock on December 1, 2023. |
Note 4 - Investments and Fair-v
Note 4 - Investments and Fair-value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 4 Investments and Fair-Value Measurements All of our investments are held in our name and are classified as short-term and held-to-maturity on the accompanying condensed consolidated balance sheets. Interest income is included as a component of other income on our condensed consolidated statement of operations and comprehensive loss. Interest and other income for the three March 31, 2024 March 31, 2023 The following tables summarize our investments: March 31, 2024 Gross Unrealized Amortized Cost Gains/(Losses) Estimated Fair Value (In thousands) U.S. government securities classified as short-term investments $ 180,971 $ (20 ) $ 180,951 Money-market funds classified as short-term investments 47,532 — 47,532 Total short-term investments 228,503 (20 ) 228,483 Certificate of deposit classified as non-current restricted investments 1,054 — 1,054 Total investments $ 229,557 $ (20 ) $ 229,537 December 31, 2023 Gross Unrealized Amortized Cost Gains/(Losses) Estimated Fair Value (In thousands) U.S. government securities classified as short-term investments $ 102,100 $ 19 $ 102,119 Money-market funds classified as short-term investments 62,643 — 62,643 Total short-term investments 164,743 19 164,762 Certificate of deposit classified as non-current restricted investments 1,054 — 1,054 Total investments $ 165,797 $ 19 $ 165,816 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 Level 1—Observable Level 2—Inputs Level 3—Unobservable no Our fair value hierarchy for our financial assets and liabilities are as follows: March 31, 2024 Level 1 Level 2 Level 3 Total (In thousands) Assets: U.S. government securities classified as short-term investments $ — $ 180,951 $ — $ 180,951 Money-market funds classified as short-term investments 47,532 — — 47,532 Total short-term investments 47,532 180,951 — 228,483 Certificate of deposit classified as non-current restricted investments 1,054 — — 1,054 Total investments $ 48,586 $ 180,951 $ — $ 229,537 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: U.S. government securities classified as short-term investments $ — $ 102,119 $ — $ 102,119 Money-market funds classified as short-term investments 62,643 — — 62,643 Total short-term investments 62,643 102,119 — 164,762 Certificate of deposit classified as non-current restricted investments 1,054 — — 1,054 Total investments $ 63,697 $ 102,119 $ — $ 165,816 Cash held in demand deposit accounts of $1.8 million and $7.1 million is excluded from our fair-value hierarchy disclosure as of March 31, 2024 December 31, 2023 See “Note 6 8 |
Note 5 - Certain Balance Sheet
Note 5 - Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | Note 5 Certain Balance Sheet Accounts OMIDRIA Contract Royalty Asset The OMIDRIA contract royalty asset consists of the following: March 31, December 31, 2024 2023 (In thousands) Short-term contract royalty asset $ 29,519 $ 29,373 Long-term contract royalty asset 135,909 138,736 Total OMIDRIA contract royalty asset $ 165,428 $ 168,109 Receivables Receivables consist of the following: March 31, December 31, 2024 2023 (In thousands) OMIDRIA royalty receivables $ 6,986 $ 6,724 Other receivables 656 1,372 Total receivables $ 7,642 $ 8,096 See “Note 7 Property and Equipment, Net Property and equipment, net consists of the following: March 31, December 31, 2024 2023 (In thousands) Equipment under finance lease obligations $ 6,929 $ 6,929 Laboratory equipment 3,583 3,525 Computer equipment 1,113 1,113 Office equipment and furniture 624 624 Total cost 12,249 12,191 Less accumulated depreciation and amortization (10,445 ) (10,241 ) Total property and equipment, net $ 1,804 $ 1,950 For the three March 31, 2024 2023 Accrued Expenses Accrued expenses consists of the following: March 31, December 31, 2024 2023 (In thousands) Clinical trials $ 9,357 $ 10,168 Employee compensation 8,799 7,380 Contract research and development 5,344 6,223 Consulting and professional fees 2,308 3,539 Interest payable 1,417 4,242 Other accrued expenses 1,177 316 Total accrued expenses $ 28,402 $ 31,868 |
Note 6 - Convertible Senior Not
Note 6 - Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | Note 6 Convertible Senior Notes 2023 We extinguished the $95.0 million outstanding on our 6.25% convertible senior notes (the “2023 November 15, 2023. three March 31, 2023, 2026 We have outstanding unsecured convertible senior notes which accrue interest at an annual rate of 5.25% per annum, payable semi-annually in arrears on February 15 August 15 “2026 2026 February 15, 2026, Amounts outstanding on our 2026 March 31, December 31, 2024 2023 (In thousands) Principal amount $ 215,924 $ 215,924 Unamortized debt issuance costs (2,461 ) (2,769 ) Total unsecured convertible senior notes, net $ 213,463 $ 213,155 Fair value of outstanding unsecured convertible senior notes (1) $ 156,545 $ 131,444 ( 1 The fair value is classified as Level 3 2026 2026 not The unamortized debt issuance costs of $2.5 million as of March 31, 2024 The following table sets forth interest expense recognized related to the 2026 Three Months Ended March 31, 2024 2023 (In thousands) Contractual interest expense $ 2,834 $ 2,954 Amortization of debt issuance costs 308 304 Total $ 3,142 $ 3,258 The initial conversion rate is 54.0906 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $18.4875 per share of common stock), which equals approximately 12.2 million shares issuable upon conversion, subject to adjustment in certain circumstances. The 2026 November 15, 2025 February 12, 2026, second February 15, 2026. may 2026 ( 1 2026 20 not 30 ( 2 five five five $1,000 2026 ( 3 one ( 4 2026 We will settle any conversions by paying or delivering, as applicable, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate(s). Subject to the satisfaction of certain conditions, we may 2026 50th 2026 2026 20 not 30 In order to reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2026 2026 “2026 2026 2026 2026 $26.10. 2026 may 2026 50 December 2, 2025 February 12, 2026, not 2026 not 2026 2026 2026 March 31, 2024, 2026 Further, we concluded the 2026 2026 not not |
Note 7 - Discontinued Operation
Note 7 - Discontinued Operations - Sale of OMIDRIA | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 7 Discontinued Operations - Sale of OMIDRIA On December 23, 2021, In December 2022, February 2023. Net income from discontinued operations is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Interest earned on OMIDRIA contract royalty asset $ 4,343 $ 3,925 Remeasurement adjustments 2,339 1,677 Other income (loss), net (16 ) 380 Net income from discontinued operations, net of tax $ 6,666 $ 5,982 The following is a roll forward of the OMIDRIA contract royalty asset (in thousands): OMIDRIA contract royalty asset at December 31, 2023 $ 168,109 Royalties earned (9,363 ) Interest earned on OMIDRIA contract royalty asset 4,343 Remeasurement adjustments 2,339 OMIDRIA contract royalty asset at March 31, 2024 $ 165,428 We remeasure the OMIDRIA contract royalty asset on a quarterly basis using the expected value approach, which incorporates actual results and future expectations. The OMIDRIA contract royalty asset is classified as a Level 3 not Cash flow from discontinued operations is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Net cash provided by discontinued operations from operating activities $ 9,107 $ 213,876 Net cash provided by discontinued operations primarily represents royalties received and the $200.0 million milestone payment that we collected from Rayner in February 2023. |
Note 8 - OMIDRIA Royalty Obliga
Note 8 - OMIDRIA Royalty Obligation | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Royalty Obligation [Text Block] | Note 8 OMIDRIA Royalty Obligation In September 2022, September 1, 2022 December 31, 2030, In February 2024, January 1, 2024 December 31, 2031. Omeros retains the right to receive all royalties payable by Rayner on any net sales of OMIDRIA outside the U.S. payable after January 1, 2024, December 31, 2031. not no We are also entitled to receive a milestone ranging between $10.0 million and $27.5 million if U.S. net sales of OMIDRIA reach applicable thresholds ranging between a total of $156.0 million and $160.0 million for any period of four January 1, 2026. four January 1, 2028. The following schedule is a roll forward of the OMIDRIA royalty obligation (in thousands): OMIDRIA royalty obligation at December 31, 2023 $ 125,126 Additional proceeds 115,525 Non-cash interest 1,079 Principal payments (5,141 ) OMIDRIA royalty obligation at March 31, 2024 $ 236,589 We account for the OMIDRIA royalty obligation under the catch-up method. The catch-up method requires that we adjust the carrying amount to match the present value of revised estimated cash flows of Rayner’s U.S. net sales of OMIDRIA. We discounted the OMIDRIA royalty obligation at an implied effective interest rate of 10.3%. The OMIDRIA royalty obligation is classified as a Level 3 not March 31, 2024 For the three March 31, 2024 2023, As of March 31, 2024 Principal Interest Total (In thousands) 2024 $ 14,147 $ 16,764 $ 30,911 2025 20,990 20,672 41,662 2026 23,991 18,504 42,495 2027 27,314 16,032 43,346 2028 30,991 13,221 44,212 Thereafter 119,156 18,857 138,013 Total scheduled payments $ 236,589 $ 104,050 $ 340,639 |
Note 9 - Leases
Note 9 - Leases | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Lease Disclosure [Text Block] | Note 9 Leases We have an operating lease for our office and laboratory facilities with an initial term that ends in November 2027 two five November 2026. Supplemental lease information is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Lease cost Operating lease cost $ 1,606 $ 1,633 Finance lease cost: Amortization 145 118 Interest 56 51 Variable lease cost 916 790 Sublease income (388 ) (375 ) Net lease cost $ 2,335 $ 2,217 Cash paid for amounts included in the measurement of lease liabilities is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Cash payments for operating leases $ 1,815 $ 1,780 Cash payments for financing leases $ 179 $ 152 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10 Commitments and Contingencies Good and Service Contracts We have various agreements with third March 31, 2024 Development Milestones and Product Royalties We have entered a variety of development, collaboration, licensing or similar agreements with third three March 31, 2024 2023, not |
Note 11 - Shareholders' Equity
Note 11 - Shareholders' Equity (Deficit) | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Equity [Text Block] | Note 11 Shareholders Equity (Deficit) Common Stock At the Market Sales Agreement March 31, 2024 not Share Repurchase Program November 9, 2023, may three March 31, 2024, |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 12 Stock-Based Compensation Our stock option plans provide for the grant of incentive and non-qualified stock options, restricted stock awards, restricted stock units, and other stock awards to employees, non-employee directors and consultants. On April 25, 2024, 2023 four Stock-based compensation is as follows: Three Months Ended March 31, 2024 2023 (In thousands) Continuing operations Research and development $ 1,014 $ 1,272 Selling, general and administrative 1,644 1,722 Total stock-based compensation in continuing operations 2,658 2,994 Discontinued operations — (41 ) Total stock-based compensation $ 2,658 $ 2,953 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were applied to all stock option grants: Three Months Ended March 31, 2024 Estimated weighted-average fair value $ 2.84 Weighted-average assumptions: Expected volatility 95 % Expected life, in years 6.7 Risk-free interest rate 4.09 % Expected dividend yield — % Expected volatility is based on the historical volatility of our stock price weighted by grant issuances over the reporting period. We estimated the expected life of the stock options granted using the historical exercise behavior of option holders. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Stock option activity for all stock plans and related information is as follows: Weighted- Average Aggregate Exercise Remaining Intrinsic Options Price per Contractual Life Value Outstanding Share (In years) (In thousands) Balance at December 31, 2023 15,255,154 $ 9.50 Granted 29,800 3.50 Exercised (9,339 ) 3.46 Forfeited (124,317 ) 7.91 Balance at March 31, 2024 15,151,298 $ 9.50 5.9 $ 1,894 Vested and expected to vest at March 31, 2024 14,712,513 $ 9.65 5.8 $ 1,746 Exercisable at March 31, 2024 10,966,833 $ 11.33 4.7 $ 394 Of the 15.2 million common stock options outstanding as of March 31, 2024 March 28, 2024. As of March 31, 2024 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 5. (a) None (b) None (c) During the three March 31, 2024, none 10b5 1 10b5 1 408 |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations We review the presentation of planned or completed business dispositions in the condensed consolidated financial statements based on the available information and events that have occurred. The review consists of evaluating whether the business meets the definition of a component for which the operations and cash flows are clearly distinguishable from the other components of the business and, if so, whether it is anticipated that, after the disposal, the cash flows of the component would be eliminated from continuing operations and whether the disposition represents a strategic shift that has a major effect on operations and financial results. Planned or completed business dispositions are presented as discontinued operations when all the criteria described above are met. For those divestitures that qualify as discontinued operations, all comparative periods presented are reclassified in the condensed consolidated balance sheets. Additionally, the results of operations of a discontinued operation are reclassified to income from discontinued operations, net of tax, for all periods presented in the condensed consolidated statements of operations and comprehensive income (loss). Results of discontinued operations include all revenues and expenses directly derived from such businesses. General corporate overhead is not |
Royalty Fees And Contract Royalty Asset [Policy Text Block] | OMIDRIA Royalties, Milestones and Contract Royalty Assets We have rights to receive future royalties from Rayner on OMIDRIA net sales at royalty rates that vary based on geography and certain regulatory contingencies. Therefore, future OMIDRIA royalties are treated as variable consideration. The sale of OMIDRIA qualified as an asset sale under GAAP. To measure the OMIDRIA contract royalty asset, we use the expected value approach which is the sum of the discounted probability-weighted royalty payments we would receive using a range of potential outcomes, to the extent that it is probable that a significant reversal in the amount of cumulative income recognized will not no 2035. |
Royalty Obligation Policy [Policy Text Block] | OMIDRIA Royalty Obligation On September 30, 2022, February 1, 2024, December 31, 2031 December 31, 2031 To the extent our estimates of future royalties differ materially from previous estimates, we will adjust the carrying amount of the liability for future OMIDRIA royalties to the present value of the revised estimated cash flows, discounted at the implied effective interest rate of 10.3% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations (see “Note 8 |
Inventory, Policy [Policy Text Block] | Inventory We expense inventory costs related to product candidates as research and development expenses until regulatory approval is reasonably assured in the U.S. or the European Union (“EU”). Once approval is reasonably assured, costs, including amounts related to third |
Lessee, Leases [Policy Text Block] | Right-of-Use Assets and Related Lease Liabilities We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not We record finance lease obligations as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of finance lease obligations is included in interest expense and recognized using the effective interest method over the lease term. We account for leases with initial terms of 12 |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes option-pricing model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected term. Compensation expense is recognized over the requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Common Stock Repurchases We may not |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not not not |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Financial Instruments and Concentrations of Credit Risk F inancial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. Cash and cash equivalents are deposited in checking and sweep accounts at financial institutions. At times, our cash and cash equivalents balance held at a financial institution may not not third March 31, 2024, no |
Note 3 - Net Loss Per Share (Ta
Note 3 - Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 2024 2023 2026 Notes convertible to common stock (1) 11,679,459 12,172,008 2023 Notes convertible to common stock (2) — 4,941,739 Outstanding options to purchase common stock 97,346 17,454 Outstanding restricted stock units (3) — 92,250 Total potentially dilutive shares excluded from net loss per share 11,776,805 17,223,451 |
Note 4 - Investments and Fair_2
Note 4 - Investments and Fair-value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Debt Securities, Available-for-Sale [Table Text Block] | March 31, 2024 Gross Unrealized Amortized Cost Gains/(Losses) Estimated Fair Value (In thousands) U.S. government securities classified as short-term investments $ 180,971 $ (20 ) $ 180,951 Money-market funds classified as short-term investments 47,532 — 47,532 Total short-term investments 228,503 (20 ) 228,483 Certificate of deposit classified as non-current restricted investments 1,054 — 1,054 Total investments $ 229,557 $ (20 ) $ 229,537 December 31, 2023 Gross Unrealized Amortized Cost Gains/(Losses) Estimated Fair Value (In thousands) U.S. government securities classified as short-term investments $ 102,100 $ 19 $ 102,119 Money-market funds classified as short-term investments 62,643 — 62,643 Total short-term investments 164,743 19 164,762 Certificate of deposit classified as non-current restricted investments 1,054 — 1,054 Total investments $ 165,797 $ 19 $ 165,816 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31, 2024 Level 1 Level 2 Level 3 Total (In thousands) Assets: U.S. government securities classified as short-term investments $ — $ 180,951 $ — $ 180,951 Money-market funds classified as short-term investments 47,532 — — 47,532 Total short-term investments 47,532 180,951 — 228,483 Certificate of deposit classified as non-current restricted investments 1,054 — — 1,054 Total investments $ 48,586 $ 180,951 $ — $ 229,537 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: U.S. government securities classified as short-term investments $ — $ 102,119 $ — $ 102,119 Money-market funds classified as short-term investments 62,643 — — 62,643 Total short-term investments 62,643 102,119 — 164,762 Certificate of deposit classified as non-current restricted investments 1,054 — — 1,054 Total investments $ 63,697 $ 102,119 $ — $ 165,816 |
Note 5 - Certain Balance Shee_2
Note 5 - Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule Of Contract Royalty Asset [Table Text Block] | March 31, December 31, 2024 2023 (In thousands) Short-term contract royalty asset $ 29,519 $ 29,373 Long-term contract royalty asset 135,909 138,736 Total OMIDRIA contract royalty asset $ 165,428 $ 168,109 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 2024 2023 (In thousands) OMIDRIA royalty receivables $ 6,986 $ 6,724 Other receivables 656 1,372 Total receivables $ 7,642 $ 8,096 |
Property, Plant and Equipment [Table Text Block] | March 31, December 31, 2024 2023 (In thousands) Equipment under finance lease obligations $ 6,929 $ 6,929 Laboratory equipment 3,583 3,525 Computer equipment 1,113 1,113 Office equipment and furniture 624 624 Total cost 12,249 12,191 Less accumulated depreciation and amortization (10,445 ) (10,241 ) Total property and equipment, net $ 1,804 $ 1,950 |
Schedule of Accrued Liabilities [Table Text Block] | March 31, December 31, 2024 2023 (In thousands) Clinical trials $ 9,357 $ 10,168 Employee compensation 8,799 7,380 Contract research and development 5,344 6,223 Consulting and professional fees 2,308 3,539 Interest payable 1,417 4,242 Other accrued expenses 1,177 316 Total accrued expenses $ 28,402 $ 31,868 |
Note 6 - Convertible Senior N_2
Note 6 - Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Convertible Debt [Table Text Block] | March 31, December 31, 2024 2023 (In thousands) Principal amount $ 215,924 $ 215,924 Unamortized debt issuance costs (2,461 ) (2,769 ) Total unsecured convertible senior notes, net $ 213,463 $ 213,155 Fair value of outstanding unsecured convertible senior notes (1) $ 156,545 $ 131,444 |
Schedule Of Debt Instrument, Interest Expense Recognized [Table Text Block] | Three Months Ended March 31, 2024 2023 (In thousands) Contractual interest expense $ 2,834 $ 2,954 Amortization of debt issuance costs 308 304 Total $ 3,142 $ 3,258 |
Note 7 - Discontinued Operati_2
Note 7 - Discontinued Operations - Sale of OMIDRIA (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended March 31, 2024 2023 (In thousands) Interest earned on OMIDRIA contract royalty asset $ 4,343 $ 3,925 Remeasurement adjustments 2,339 1,677 Other income (loss), net (16 ) 380 Net income from discontinued operations, net of tax $ 6,666 $ 5,982 |
Disposal Groups, Including Discontinued Operations, Contract Royalty Asset [Table Text Block] | OMIDRIA contract royalty asset at December 31, 2023 $ 168,109 Royalties earned (9,363 ) Interest earned on OMIDRIA contract royalty asset 4,343 Remeasurement adjustments 2,339 OMIDRIA contract royalty asset at March 31, 2024 $ 165,428 |
Schedule Of Disposal Groups Including Discontinued Operations Cash Flows [Table Text Block] | Three Months Ended March 31, 2024 2023 (In thousands) Net cash provided by discontinued operations from operating activities $ 9,107 $ 213,876 |
Note 8 - OMIDRIA Royalty Obli_2
Note 8 - OMIDRIA Royalty Obligation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Royalty Obligation [Table Text Block] | OMIDRIA royalty obligation at December 31, 2023 $ 125,126 Additional proceeds 115,525 Non-cash interest 1,079 Principal payments (5,141 ) OMIDRIA royalty obligation at March 31, 2024 $ 236,589 |
Maximum Scheduled Principal and Interest Payments of Royalty Obligation [Table Text Block] | Principal Interest Total (In thousands) 2024 $ 14,147 $ 16,764 $ 30,911 2025 20,990 20,672 41,662 2026 23,991 18,504 42,495 2027 27,314 16,032 43,346 2028 30,991 13,221 44,212 Thereafter 119,156 18,857 138,013 Total scheduled payments $ 236,589 $ 104,050 $ 340,639 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2024 2023 (In thousands) Lease cost Operating lease cost $ 1,606 $ 1,633 Finance lease cost: Amortization 145 118 Interest 56 51 Variable lease cost 916 790 Sublease income (388 ) (375 ) Net lease cost $ 2,335 $ 2,217 Three Months Ended March 31, 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Cash payments for operating leases $ 1,815 $ 1,780 Cash payments for financing leases $ 179 $ 152 |
Note 12 - Stock-based Compens_2
Note 12 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended March 31, 2024 2023 (In thousands) Continuing operations Research and development $ 1,014 $ 1,272 Selling, general and administrative 1,644 1,722 Total stock-based compensation in continuing operations 2,658 2,994 Discontinued operations — (41 ) Total stock-based compensation $ 2,658 $ 2,953 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended March 31, 2024 Estimated weighted-average fair value $ 2.84 Weighted-average assumptions: Expected volatility 95 % Expected life, in years 6.7 Risk-free interest rate 4.09 % Expected dividend yield — % |
Share-Based Payment Arrangement, Activity [Table Text Block] | Weighted- Average Aggregate Exercise Remaining Intrinsic Options Price per Contractual Life Value Outstanding Share (In years) (In thousands) Balance at December 31, 2023 15,255,154 $ 9.50 Granted 29,800 3.50 Exercised (9,339 ) 3.46 Forfeited (124,317 ) 7.91 Balance at March 31, 2024 15,151,298 $ 9.50 5.9 $ 1,894 Vested and expected to vest at March 31, 2024 14,712,513 $ 9.65 5.8 $ 1,746 Exercisable at March 31, 2024 10,966,833 $ 11.33 4.7 $ 394 |
Note 1 - Organization and Bas_2
Note 1 - Organization and Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Feb. 01, 2024 | Sep. 30, 2022 | Feb. 29, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 01, 2021 | |
Cash, Cash Equivalents, and Short-Term Investments | $ 230,300 | ||||||
Net Cash Provided by (Used in) Operating Activities | (41,780) | $ 174,539 | |||||
Equity Offering Facility, Maximum Aggregate Offering Amount | $ 150,000 | $ 150,000 | |||||
DRI Healthcare Acquisition LP [Member] | |||||||
Proceeds From Royalty Obligation | $ 115,500 | $ 125,000 | $ 115,500 | ||||
PDE7 [Member] | National Institute on Drug Abuse ("NIDA") [Member] | |||||||
Grants Receivable | $ 6,690 | $ 6,690 | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 700 | ||||||
Other Income | $ 200 |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 1 Months Ended | ||||
Feb. 01, 2024 | Sep. 30, 2022 | Feb. 29, 2024 | Dec. 31, 2022 | Mar. 31, 2023 | |
Percentage of Royalty Receivable on Sale of Product Rights | 30% | ||||
Percentage Of Interest Earned on Outstanding Contract Royalty Asset | 11% | ||||
DRI Healthcare Acquisition LP [Member] | |||||
Proceeds From Royalty Obligation | $ 115.5 | $ 125 | $ 115.5 | ||
Royalty Interest Rate | 10.30% | 10.30% |
Note 3 - Net Loss Per Share - S
Note 3 - Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Total potentially dilutive shares excluded from net income (loss) per share (in shares) | 11,776,805 | 17,223,451 | |
Convertible Senior Notes 2026 [Member] | |||
Total potentially dilutive shares excluded from net income (loss) per share (in shares) | [1] | 11,679,459 | 12,172,008 |
Convertible Senior Notes 2023 [Member] | |||
Total potentially dilutive shares excluded from net income (loss) per share (in shares) | [2] | 0 | 4,941,739 |
Share-Based Payment Arrangement, Option [Member] | |||
Total potentially dilutive shares excluded from net income (loss) per share (in shares) | 97,346 | 17,454 | |
Restricted Stock Units (RSUs) [Member] | |||
Total potentially dilutive shares excluded from net income (loss) per share (in shares) | [3] | 0 | 92,250 |
[1]The 2026 Notes are subject to a capped call arrangements that potentially reduces the dilutive effect as described in “Note 6 — Convertible Senior Notes.” Any potential impact of the capped call arrangements is excluded from this table.[2]The 2023 Notes (defined below) were fully extinguished upon maturity on November 15, 2023.[3]The outstanding restricted stock units were vested and converted to shares of common stock on December 1, 2023. |
Note 4 - Investments and Fair_3
Note 4 - Investments and Fair-value Measurements (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Investment Income, Interest | $ 2.8 | $ 3.4 | |
Demand Deposits [Member] | |||
Restricted Cash, Current | $ 1.8 | $ 7.1 |
Note 4 - Investments and Fair_4
Note 4 - Investments and Fair-value Measurements - Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt securities, available for sale, amortized cost | $ 228,503 | $ 164,743 |
Debt securities, available for sale, gross unrealized gains (losses) | (20) | 19 |
Debt securities, available for sale, fair value | 228,483 | 164,762 |
Debt securities, amortized cost | 229,557 | 165,797 |
Debt securities, fair value | 229,537 | 165,816 |
US Treasury Securities [Member] | ||
Debt securities, available for sale, amortized cost | 180,971 | 102,100 |
Debt securities, available for sale, gross unrealized gains (losses) | (20) | 19 |
Debt securities, available for sale, fair value | 180,951 | 102,119 |
Money Market Funds [Member] | ||
Debt securities, available for sale, amortized cost | 47,532 | 62,643 |
Debt securities, available for sale, gross unrealized gains (losses) | 0 | 0 |
Debt securities, available for sale, fair value | 47,532 | 62,643 |
Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, amortized cost | 1,054 | 1,054 |
Debt securities, held-to-maturity, fair value | $ 1,054 | $ 1,054 |
Note 4 - Investments and Fair_5
Note 4 - Investments and Fair-value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term investments | $ 228,503 | $ 164,743 |
Restricted investments | 1,054 | 1,054 |
Fair Value, Recurring [Member] | ||
Short-term investments | 228,483 | 164,762 |
Restricted investments | 1,054 | 1,054 |
Total | 229,537 | 165,816 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Short-term investments | 47,532 | 62,643 |
Restricted investments | 1,054 | 1,054 |
Total | 48,586 | 63,697 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term investments | 180,951 | 102,119 |
Restricted investments | 0 | 0 |
Total | 180,951 | 102,119 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term investments | 0 | 0 |
Restricted investments | 0 | 0 |
Total | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | ||
Short-term investments | 180,951 | 102,119 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Short-term investments | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term investments | 180,951 | 102,119 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term investments | 0 | 0 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | ||
Short-term investments | 47,532 | 62,643 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Short-term investments | 47,532 | 62,643 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term investments | 0 | 0 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term investments | $ 0 | $ 0 |
Note 5 - Certain Balance Shee_3
Note 5 - Certain Balance Sheet Accounts (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Depreciation | $ 0.2 | $ 0.2 |
Note 5 - Certain Balance Shee_4
Note 5 - Certain Balance Sheet Accounts - Contract Royalty Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term contract royalty asset | $ 29,519 | $ 29,373 |
Long-term contract royalty asset | 135,909 | 138,736 |
Total OMIDRIA contract royalty asset | $ 165,428 | $ 168,109 |
Note 5 - Certain Balance Shee_5
Note 5 - Certain Balance Sheet Accounts - Schedule of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
OMIDRIA royalty receivables | $ 6,986 | $ 6,724 |
Other receivables | 656 | 1,372 |
Total receivables | $ 7,642 | $ 8,096 |
Note 5 - Certain Balance Shee_6
Note 5 - Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property and equipment, gross | $ 12,249 | $ 12,191 |
Less accumulated depreciation and amortization | (10,445) | (10,241) |
Total property and equipment, net | 1,804 | 1,950 |
Finance Lease Equipment [Member] | ||
Property and equipment, gross | 6,929 | 6,929 |
Equipment [Member] | ||
Property and equipment, gross | 3,583 | 3,525 |
Computer Equipment [Member] | ||
Property and equipment, gross | 1,113 | 1,113 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | $ 624 | $ 624 |
Note 5 - Certain Balance Shee_7
Note 5 - Certain Balance Sheet Accounts - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Clinical trials | $ 9,357 | $ 10,168 |
Employee compensation | 8,799 | 7,380 |
Contract research and development | 5,344 | 6,223 |
Consulting and professional fees | 2,308 | 3,539 |
Interest payable | 1,417 | 4,242 |
Other accrued expenses | 1,177 | 316 |
Total accrued expenses | $ 28,402 | $ 31,868 |
Note 6 - Convertible Senior N_3
Note 6 - Convertible Senior Notes (Details Textual) $ / shares in Units, shares in Millions | 2 Months Ended | 3 Months Ended | ||||
May 15, 2024 USD ($) | Nov. 15, 2023 USD ($) | Sep. 30, 2020 USD ($) | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Interest Expense, Debt | $ 3,142,000 | $ 3,258,000 | ||||
Amortization of Debt Issuance Costs and Discounts | 1,387,000 | 477,000 | ||||
Subsequent Event [Member] | Conversion of 2026 Notes into New Term Loans [Member] | ||||||
Debt Conversion, Original Debt, Amount | $ 14,000,000 | |||||
Convertible Senior Notes 2023 [Member] | ||||||
Extinguishment of Debt, Amount | $ 95,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||||
Interest Expense, Debt | 1,500,000 | |||||
Amortization of Debt Issuance Costs and Discounts | $ 200,000 | |||||
Debt Issuance Costs, Net | $ 2,461,000 | |||||
Convertible Senior Notes 2026 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 18.4875 | |||||
Debt Issuance Costs, Net | $ 2,500,000 | $ 2,769,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 5.90% | |||||
Debt Instrument, Convertible, Conversion Ratio | 54.0906 | |||||
Debt Instrument, Convertible Debt, Denominator Amount | $ 1,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | shares | 12.2 | |||||
Debt Instrument, Convertible, Fair Value Amount of Equity Component | $ 23,200,000 | |||||
Convertible Senior Notes 2026 [Member] | Minimum [Member] | ||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 18.49 | |||||
Convertible Senior Notes 2026 [Member] | Maximum [Member] | ||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | 26.1 | |||||
Convertible Senior Notes 2026 [Member] | Debt Conversion After September 30, 2020 [Member] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130% | |||||
Debt Instrument, Convertible, Threshold Sale Price Of Common Stock Conversion Rate Product Percentage Maximum | 98% | |||||
Convertible Senior Notes 2026 [Member] | Debt Conversion On Or After August 15, 2023 [Member] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130% | |||||
Convertible Senior Notes 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 18.49 |
Note 6 - Convertible Senior N_4
Note 6 - Convertible Senior Notes - Convertible Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Convertible Senior Notes 2023 [Member] | |||
Principal amount | $ 215,924 | ||
Unamortized debt issuance costs | (2,461) | ||
Total unsecured convertible senior notes, net | 213,463 | ||
Fair value of outstanding unsecured convertible senior notes (1) | [1] | 156,545 | |
Convertible Senior Notes 2026 [Member] | |||
Principal amount | $ 215,924 | ||
Unamortized debt issuance costs | $ (2,500) | (2,769) | |
Total unsecured convertible senior notes, net | 213,155 | ||
Fair value of outstanding unsecured convertible senior notes (1) | [1] | $ 131,444 | |
[1]The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes. The fair value of the 2026 Notes is determined based on quoted prices in an over-the counter market using the most recent trading information at the end of the reporting period. The value of the conversion feature of the 2026 Notes is not deemed to be significant as the current market price of our common stock is below the initial conversion price of $18.49 per share of common stock. |
Note 6 - Convertible Senior N_5
Note 6 - Convertible Senior Notes - Schedule of Debt Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total | $ 3,142 | $ 3,258 |
Convertible Senior Notes 2023 [Member] | ||
Contractual interest expense | 2,834 | 2,954 |
Amortization of debt issuance costs | $ 308 | 304 |
Total | $ 1,500 |
Note 7 - Discontinued Operati_3
Note 7 - Discontinued Operations - Sale of OMIDRIA (Details Textual) $ in Billions | Dec. 29, 2022 USD ($) |
Omidria Assets Disposal [Member] | Discontinued Operations, Disposed of by Sale [Member] | |
Milestone Payment Receivable from Sale of Royalty Under Asset Purchase Agreement | $ 0.2 |
Note 7 - Discontinued Operati_4
Note 7 - Discontinued Operations - Sale of OMIDRIA - Net Income From Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale [Member] - Omidria Assets Disposal [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest earned on OMIDRIA contract royalty asset | $ 4,343 | $ 3,925 |
Remeasurement adjustments | 2,339 | 1,677 |
Other income (loss), net | (16) | 380 |
Net income from discontinued operations, net of tax | $ 6,666 | $ 5,982 |
Note 7 - Discontinued Operati_5
Note 7 - Discontinued Operations - Sale of OMIDRIA - Contract Royalty Asset (Details) - Discontinued Operations, Disposed of by Sale [Member] - Omidria Assets Disposal [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OMIDRIA contract royalty asset at December 31, 2023 | $ 168,109 | |
Royalties earned | (9,363) | |
Interest earned on OMIDRIA contract royalty asset | 4,343 | $ 3,925 |
Remeasurement adjustments | 2,339 | $ 1,677 |
OMIDRIA contract royalty asset at March 31, 2024 | $ 165,428 |
Note 7 - Discontinued Operati_6
Note 7 - Discontinued Operations - Sale of OMIDRIA - Schedule of Discontinued Operations Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Discontinued Operations, Disposed of by Sale [Member] | Omidria Assets Disposal [Member] | ||
Net cash provided by discontinued operations from operating activities | $ 9,107 | $ 213,876 |
Note 8 - OMIDRIA Royalty Obli_3
Note 8 - OMIDRIA Royalty Obligation (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Feb. 01, 2024 | Sep. 30, 2022 | Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Expense, Operating and Nonoperating | $ 8,231 | $ 7,933 | |||
Minimum [Member] | |||||
Milestone Benchmark One, If Milestone Achieves | $ 10,000 | ||||
Milestone Benchmark Two, If Milestone Achieves | 156,000 | ||||
Milestone Benchmark Three, Minimum Net Sales Required for Four Consecutive Quarters | 8,000 | ||||
Milestone Benchmark Four, Minimum Net Sales Required for Four Consecutive Quarters | 181,000 | ||||
Maximum [Member] | |||||
Milestone Benchmark One, If Milestone Achieves | 27,500 | ||||
Milestone Benchmark Two, If Milestone Achieves | $ 160,000 | ||||
Milestone Benchmark Three, Minimum Net Sales Required for Four Consecutive Quarters | 27,500 | ||||
Milestone Benchmark Four, Minimum Net Sales Required for Four Consecutive Quarters | 185,000 | ||||
DRI Healthcare Acquisition LP [Member] | |||||
Proceeds From Royalty Obligation | $ 115,500 | $ 125,000 | $ 115,500 | ||
Royalty Interest Rate | 10.30% | 10.30% | |||
Interest Expense, Operating and Nonoperating | $ 5,000 | $ 3,000 |
Note 8 - OMIDRIA Royalty Obli_4
Note 8 - OMIDRIA Royalty Obligation - Schedule of Royalty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Non-cash interest | $ 8,231 | $ 7,933 |
Principal payments | (5,141) | $ (278) |
Royalty Obligation [Member] | ||
OMIDRIA royalty obligation at December 31, 2023 | 125,126 | |
Additional proceeds | 115,525 | |
Non-cash interest | 1,079 | |
Principal payments | (5,141) | |
OMIDRIA royalty obligation at March 31, 2024 | $ 236,589 |
Note 8 - OMIDRIA Royalty Obli_5
Note 8 - OMIDRIA Royalty Obligation - Schedule of Principal and Interest Payments on Royalty Obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
2024, principal | $ 14,147 |
2024, interest | 16,764 |
2024, annual cap | 30,911 |
2025, principal | 20,990 |
2025, interest | 20,672 |
2025, annual cap | 41,662 |
2026, principal | 23,991 |
2026, interest | 18,504 |
2026, annual cap | 42,495 |
2027, principal | 27,314 |
2027, interest | 16,032 |
2027, annual cap | 43,346 |
2028, principal | 30,991 |
2028, interest | 13,221 |
2028, annual cap | 44,212 |
Thereafter, principal | 119,156 |
Thereafter, interest | 18,857 |
Thereafter, annual cap | 138,013 |
Total scheduled payments, principal | 236,589 |
Total scheduled payments, interest | 104,050 |
Total scheduled payments, annual cap | $ 340,639 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Number Of Options To Extend Lease Term | 2 | |
Lessee, Operating Lease, Term of Contract (Year) | 5 years | |
Restricted Cash and Cash Equivalents, Noncurrent | $ 1,054 | $ 1,054 |
Note 9 - Leases - Lease Cost (D
Note 9 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease cost | $ 1,606 | $ 1,633 |
Amortization | 145 | 118 |
Interest | 56 | 51 |
Variable lease cost | 916 | 790 |
Sublease income | (388) | (375) |
Net lease cost | 2,335 | 2,217 |
Cash payments for operating leases | 1,815 | 1,780 |
Cash payments for financing leases | $ 179 | $ 152 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details Textual) $ in Millions | Mar. 31, 2024 USD ($) |
Long-Term Purchase Commitment, Termination Fee | $ 23.3 |
Note 11 - Shareholders' Equit_2
Note 11 - Shareholders' Equity (Deficit) (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 5 Months Ended | |||
Jan. 01, 2024 | Mar. 31, 2024 | Mar. 31, 2024 | Nov. 09, 2023 | Mar. 01, 2021 | |
Equity Offering Facility, Maximum Aggregate Offering Amount | $ 150,000 | $ 150,000 | $ 150,000 | ||
Stock Repurchase Program, Authorized Amount | $ 50,000 | ||||
Stock Repurchased and Retired During Period, Shares (in shares) | 3,200 | 5,000 | |||
Stock Repurchased and Retired, Average Price Per Share (in dollars per share) | $ 3.71 | $ 3.3 | |||
Stock Repurchased and Retired During Period, Value | $ 11,851 | ||||
At the Market Equity Offering Program [Member] | |||||
Stock Issued During Period, Shares, New Issues (in shares) | 0 |
Note 12 - Stock-based Compens_3
Note 12 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 29,800 | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 3.5 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares) | 15,151,298 | 15,255,154 |
Share Price (in dollars per share) | $ 3.45 | |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 2,900,000 | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 3.06 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 4 years | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares) | 15,200,000 | |
Common Stock, Shares, Outstanding, Above Period End Closing Price (in shares) | 12,100,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares) | 4,200,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 12.1 |
Note 12 - Share-Based Compensat
Note 12 - Share-Based Compensation - Schedule of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock-based compensation | $ 2,658 | $ 2,953 |
Research and Development Expense [Member] | ||
Stock-based compensation | 1,014 | 1,272 |
Selling, General and Administrative Expenses [Member] | ||
Stock-based compensation | 1,644 | 1,722 |
Continuing Operations [Member] | ||
Stock-based compensation | 2,658 | 2,994 |
Discontinued Operations [Member] | ||
Stock-based compensation | $ 0 | $ (41) |
Note 12 - Share-Based Compens_2
Note 12 - Share-Based Compensation - Valuation Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Estimated weighted-average fair value (in dollars per share) | $ 2.84 |
Expected volatility | 95% |
Expected life, in years (Year) | 6 years 8 months 12 days |
Risk-free interest rate | 4.09% |
Expected dividend yield | 0% |
Note 12 - Stock-Based Compens_4
Note 12 - Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Balance, options (in shares) | shares | 15,255,154 |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 9.5 |
Granted (in shares) | shares | 29,800 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 3.5 |
Exercised, options (in shares) | shares | (9,339) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 3.46 |
Forfeited, options (in shares) | shares | (124,317) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 7.91 |
Balance, options (in shares) | shares | 15,151,298 |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 9.5 |
Balance, Remaining Contractual Life (Year) | 5 years 10 months 24 days |
Balance, Intrinsic Value | $ | $ 1,894 |
Vested and expected to vest, options (in shares) | shares | 14,712,513 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 9.65 |
Vested and expected to vest, Remaining Contractual Life (Year) | 5 years 9 months 18 days |
Vested and expected to vest, Intrinsic Value | $ | $ 1,746 |
Exercisable, options (in shares) | shares | 10,966,833 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 11.33 |
Exercisable, Remaining Contractual Life (Year) | 4 years 8 months 12 days |
Exercisable, Intrinsic Value | $ | $ 394 |