Omeros (OMER) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 07, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	001-34475
Entity Registrant Name	OMEROS CORPORATION
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
Trading Symbol	OMER
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,855,824
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001285819
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 6,603	$ 11,009
Short-term investments	334,680	183,909
OMIDRIA contract royalty asset, short-term	29,084	28,797
Receivables	11,190	213,221
Prepaid expense and other assets	7,001	6,300
Total current assets	388,558	443,236
OMIDRIA contract royalty asset	115,802	123,425
Right of use assets	20,258	21,762
Property and equipment, net	1,749	1,492
Restricted investments	1,054	1,054
Total assets	527,421	590,969
Current liabilities:
Accounts payable	9,552	5,989
Accrued expenses	29,793	30,551
Current portion of unsecured convertible senior notes, net	94,730	94,381
Current portion of OMIDRIA royalty obligation	4,777	1,152
Current portion of lease liabilities	4,686	4,310
Total current liabilities	143,538	136,383
Unsecured convertible senior notes, net	221,516	220,906
OMIDRIA royalty obligation	120,939	125,126
Lease liabilities, non-current	20,422	22,426
Other accrued liabilities, non-current	496	444
Commitments and contingencies (Note 10)
Shareholders' equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized; none issued and outstanding at June 30, 2023 and December 31, 2022.
Common stock, par value $0.01 per share, 150,000,000 shares authorized at June 30, 2023 and December 31, 2022; 62,848,321 and 62,828,765 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.	628	628
Additional paid-in capital	726,594	720,773
Accumulated deficit	(706,712)	(635,717)
Total shareholders' equity	20,510	85,684
Total liabilities and shareholders' equity	$ 527,421	$ 590,969

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
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	62,848,321	62,828,765
Common stock, outstanding shares	62,848,321	62,828,765

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Costs and expenses:
Research and development	$ 29,639	$ 23,516	$ 54,249	$ 47,603
Selling, general and administrative	11,260	13,922	22,363	24,881
Total costs and expenses	40,899	37,438	76,612	72,484
Loss from operations	(40,899)	(37,438)	(76,612)	(72,484)
Interest expense	(7,932)	(4,927)	(15,865)	(9,868)
Interest and other income	4,537	670	8,500	1,163
Net loss from continuing operations	(44,294)	(41,695)	(83,977)	(81,189)
Net income from discontinued operations	7,000	10,846	12,982	17,329
Net loss	$ (37,294)	$ (30,849)	$ (70,995)	$ (63,860)
Basic net income (loss) per share continuing operations	$ (0.70)	$ (0.66)	$ (1.34)	$ (1.30)
Basic net income (loss) per share discontinued operations	0.11	0.17	0.21	0.28
Basic net income (loss) per share	(0.59)	(0.49)	(1.13)	(1.02)
Diluted net income (loss) per share continuing operations	(0.70)	(0.66)	(1.34)	(1.30)
Diluted net income (loss) per share discontinued operations	0.11	0.17	0.21	0.28
Diluted net income (loss) per share	$ (0.59)	$ (0.49)	$ (1.13)	$ (1.02)
Weighted-average shares used to compute basic net income (loss) per share (in shares)	62,837,125	62,730,015	62,832,991	62,727,395
Weighted-average shares used to compute diluted net income (loss) per share (in shares)	62,837,125	62,730,015	62,832,991	62,727,395

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2021	$ 626	$ 706,288	$ (683,134)	$ 23,780
Balance (in shares) at Dec. 31, 2021	62,628,855
Increase (Decrease) in Stockholders' Equity
Exercise of stock options and warrants	$ 1	413		414
Exercise of stock options and warrants (in shares)	101,160
Stock-based compensation		3,892		3,892
Net loss			(33,011)	(33,011)
Balance at Mar. 31, 2022	$ 627	710,593	(716,145)	(4,925)
Balance (in shares) at Mar. 31, 2022	62,730,015
Balance at Dec. 31, 2021	$ 626	706,288	(683,134)	23,780
Balance (in shares) at Dec. 31, 2021	62,628,855
Increase (Decrease) in Stockholders' Equity
Net loss				(63,860)
Balance at Jun. 30, 2022	$ 627	713,665	(746,994)	(32,702)
Balance (in shares) at Jun. 30, 2022	62,730,015
Balance at Mar. 31, 2022	$ 627	710,593	(716,145)	(4,925)
Balance (in shares) at Mar. 31, 2022	62,730,015
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		3,072		3,072
Net loss			(30,849)	(30,849)
Balance at Jun. 30, 2022	$ 627	713,665	(746,994)	(32,702)
Balance (in shares) at Jun. 30, 2022	62,730,015
Balance at Dec. 31, 2022	$ 628	720,773	(635,717)	85,684
Balance (in shares) at Dec. 31, 2022	62,828,765
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		2,953		2,953
Net loss			(33,701)	(33,701)
Balance at Mar. 31, 2023	$ 628	723,726	(669,418)	54,936
Balance (in shares) at Mar. 31, 2023	62,828,765
Balance at Dec. 31, 2022	$ 628	720,773	(635,717)	$ 85,684
Balance (in shares) at Dec. 31, 2022	62,828,765
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock options (in shares)				19,556
Net loss				$ (70,995)
Balance at Jun. 30, 2023	$ 628	726,594	(706,712)	20,510
Balance (in shares) at Jun. 30, 2023	62,848,321
Balance at Mar. 31, 2023	$ 628	723,726	(669,418)	54,936
Balance (in shares) at Mar. 31, 2023	62,828,765
Increase (Decrease) in Stockholders' Equity
Exercise of stock options and warrants		97		97
Exercise of stock options and warrants (in shares)	19,556
Stock-based compensation		2,771		2,771
Net loss			(37,294)	(37,294)
Balance at Jun. 30, 2023	$ 628	$ 726,594	$ (706,712)	$ 20,510
Balance (in shares) at Jun. 30, 2023	62,848,321

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net loss	$ (70,995)	$ (63,860)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	5,724	6,964
Non-cash interest expense on unsecured convertible debt	959	900
Depreciation and amortization	518	469
Non-cash interest earned on OMIDRIA contract royalty asset	(7,754)	(9,383)
Remeasurement on OMIDRIA contract royalty asset	(4,824)	(7,716)
Accretion on U.S. government treasury bills, net	(5,090)
Early termination of operating lease		(454)
Changes in operating assets and liabilities:
Receivables	202,031	23,676
Prepaid expenses and other	(1,044)	(3,668)
OMIDRIA contract royalty asset	19,914	31,063
Accounts payable and accrued expense	2,759	(12,653)
Net cash provided by (used in) operating activities	142,198	(34,662)
Investing activities:
Purchases of investments and other	(662,738)	(103,169)
Proceeds from the sale and maturities of investments	517,057	51,200
Purchases of property and equipment	(275)	(103)
Net cash used in investing activities	(145,956)	(52,072)
Financing activities:
Principal payments on OMIDRIA royalty obligation	(467)
Principal payments on finance lease obligations	(278)	(352)
Proceeds upon exercise of stock options	97	414
Net cash provided by (used in) financing activities	(648)	62
Net decrease in cash and cash equivalents	(4,406)	(86,672)
Cash and cash equivalents at beginning of period	11,009	100,808
Cash and cash equivalents at end of period	6,603	14,136
Supplemental cash flow information
Cash paid for interest	15,865	8,998
Equipment acquired under finance lease	$ 500	$ 557

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Organization and Basis of Presentation
Organization and Basis of Presentation	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. We marketed our first drug product, OMIDRIA ® ​ The lead drug candidate in our pipeline of complement-targeted therapeutics is narsoplimab, a proprietary, patented human monoclonal antibody targeting mannan-binding lectin-associated serine protease 2 (“MASP-2”), the key activator of the lectin pathway of complement. Clinical development of narsoplimab is currently focused primarily on hematopoietic stem cell transplant-associated thrombotic microangiopathy (“HSCT-TMA”) and immunoglobulin A (“IgA”) nephropathy. Our pipeline of clinical-stage development programs includes: our long-acting MASP-2 inhibitor OMS1029, our inhibitor of mannan-binding lectin-associated serine protease-3 (“MASP-3”) OMS906 and our phophodiesterase 7 (PDE7) inhibitor OMS527. Sale of OMIDRIA Assets On December 23, 2021, we sold our commercial product OMIDRIA and certain related assets including inventory and prepaid expenses to Rayner Surgical Inc. (“Rayner”). Rayner paid us $126.0 million in cash at closing, and we retained all outstanding accounts receivable, accounts payable and accrued expenses as of the closing date. ​ Under the Asset Purchase Agreement with Rayner (the “Asset Purchase Agreement”), we were entitled to receive a milestone payment of $200.0 million (the “Milestone Payment”) within 30 days following an event (the “Milestone Event”) that establishes separate payment for OMIDRIA for a continuous period of at least four years when furnished in the ambulatory surgery center (“ASC”) setting. In December 2022, the Milestone Event occurred and we recorded a $200.0 million milestone receivable. Upon the achievement of the Milestone Event, our royalties on U.S. net sales were reduced from 50% to 30%, with royalties on any net sales outside the U.S. remaining unchanged at 15%. We received the Milestone Payment together with accrued interest in February 2023. ​ As a result of the divestiture, the results of OMIDRIA operations (e.g., revenues and operating costs) are included in discontinued operations in our condensed consolidated statements of operations and comprehensive loss and excluded from continuing operations for all periods presented (see “Note 3 – Discontinued Operations”). 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 June 30, 2023, we had cash, cash equivalents and short-term investments of $341.3 million and outstanding accounts receivable of $11.2 million. Our loss for the quarter ended June 30, 2023 was $37.3 million and our cash provided by operations for the six months ended June 30, 2023 was $142.2 million, which included collection of the $200.0 million Milestone Payment in the first quarter of 2023. ​ Historically, we have incurred net losses from continuing operations and negative operating cash flows. We have not yet established an ongoing source of revenue sufficient to cover our operating costs and, therefore, could need to raise additional capital to accomplish our business plan and to retire our outstanding convertible senior notes due in 2026. We plan to continue to fund our operations for at least the next twelve months with our existing cash and investments, royalties from Rayner and our outstanding accounts receivable. If FDA approves narsoplimab for treatment of any indication within the next twelve months, then sales of narsoplimab may also provide funds for our operations . We have a sales agreement in place for an “at the market” equity offering facility through which we may offer and sell shares of our common stock equaling an aggregate amount up to $150.0 million. Should it be determined to be strategically advantageous, we could also pursue debt financings as well as public and private offerings of our equity securities, similar to those we have previously completed, or other strategic transactions, which may include licensing a portion of our existing technologies. ​ 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.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Significant Accounting Policies
Significant Accounting Policies	Note 2—Significant Accounting Policies 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 used the expected value approach which is the sum of the discounted probability-weighted royalty payment 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 occur. As contemplated by the Asset Purchase Agreement, the royalty rate applicable to U.S. net sales of OMIDRIA was reduced from 50% to 30% upon the occurrence, in December 2022, of the event triggering the $200.0 million Milestone Payment. Consequently, in December 2022, we revalued the OMIDRIA contract royalty asset using the 30% royalty rate on U.S. net sales and adjusted the probability-weighted outcomes to reflect the occurrence of the Milestone Event. Royalties earned are recorded as a reduction to the OMIDRIA contract royalty asset. The amount recorded in discontinued operations in future periods will reflect interest earned on the outstanding OMIDRIA contract royalty asset at an effective interest rate of 11.0% and any amounts we receive that are different from the expected royalties. The OMIDRIA contract royalty asset will be re-measured periodically using the expected value approach based on actual results and future expectations. Any required adjustment to the OMIDRIA contract royalty asset will be recorded in discontinued operations. OMIDRIA Royalty Obligation On September 30, 2022, we sold to DRI Healthcare Acquisitions LP (“DRI”) an interest in a portion of our future OMIDRIA royalty receipts for a purchase price of $125.0 million in cash (see “Note 8 – OMIDRIA Royalty Obligation”). The $125.0 million cash consideration obtained is classified as a liability and is recorded as an “OMIDRIA royalty obligation” on our condensed consolidated balance sheet. The liability is being amortized over the term of the arrangement using the implied effective interest rate of 9.4% and interest expense is recorded as a component of continuing operations. 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 original effective interest rate of 9.4% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations. 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-party manufacturing, transportation and internal labor and overhead, will be capitalized. 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 readily available. We recognize variable lease payments, when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. 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 months or less as an operating expense Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards and restricted stock units (“RSU”) based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes valuation model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected option life. 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. 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 bases. 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 of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2023
Discontinued Operations
Discontinued Operations	Note 3—Discontinued Operations On December 23, 2021, we sold OMIDRIA and certain related assets including inventory and prepaid expenses to Rayner. ​ Under the Asset Purchase Agreement, the achievement of the Milestone Event in December 2022 triggered a $200.0 million Milestone Payment from Rayner and a reduction in the U.S. royalty rate from 50% to 30% on OMIDRIA net sales until the expiration or termination of the last issued and unexpired U.S. patent, which we expect to occur no earlier than specific period in which OMIDRIA is no longer eligible for separate payment, the U.S. base royalty rate would be further reduced to 10%. Pursuant to legislation enacted in late 2022, we expect separate payment for OMIDRIA under Medicare Part B to extend until at least January 1, 2028. ​ The sale of OMIDRIA and related assets was recorded as an asset sale. Additionally, the results of operations related to OMIDRIA are recorded as income from discontinued operations for all periods presented in the condensed consolidated statements of operations and comprehensive loss. ​ The following schedule presents a rollforward of the OMIDRIA contract royalty asset (in thousands): ​ ​ ​ ​ ​ OMIDRIA contract royalty asset at December 31, 2022 ​ $ 152,222 Royalties earned ​ ​ (19,914) Interest earned on OMIDRIA contract royalty asset ​ ​ 7,754 Remeasurement adjustments ​ ​ 4,824 OMIDRIA contract royalty asset at June 30, 2023 ​ $ 144,886 ​ Net income from discontinued operations is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ 2023 2022 ​ ​ (In thousands) Interest earned on OMIDRIA contract royalty asset ​ $ 3,829 ​ $ 4,545 ​ $ 7,754 ​ $ 9,383 Remeasurement adjustments ​ ​ 3,147 ​ ​ 5,557 ​ ​ 4,824 ​ ​ 7,716 Other income (expense), net ​ ​ 24 ​ ​ 744 ​ ​ 404 ​ ​ 230 Net income from discontinued operations, net of tax ​ $ 7,000 ​ $ 10,846 ​ $ 12,982 ​ $ 17,329 ​ Cash flow from discontinued operations is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2023 2022 ​ ​ (In thousands) Net cash provided by discontinued operations from operating activities ​ $ 217,688 ​ $ 46,038 ​ 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.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2023
Net Loss Per Share
Net Loss Per Share	Note 4—Net Loss Per Share Our potentially dilutive securities include potential common shares related to our stock options, RSUs and unsecured convertible senior notes. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. Potentially dilutive securities excluded from Diluted EPS are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 2026 Notes convertible to common stock (1) ​ 12,172,008 ​ 12,172,008 ​ 12,172,008 ​ 12,172,008 2023 Notes convertible to common stock (1) ​ 4,941,739 ​ 4,941,739 ​ 4,941,739 ​ 4,941,739 Outstanding options to purchase common stock ​ 98,920 88 ​ 42,186 1,963 Outstanding restricted stock units ​ 89,750 ​ 208,819 ​ 89,750 ​ 207,736 Total potentially dilutive shares excluded from net loss per share ​ 17,302,417 17,322,654 ​ 17,245,683 17,323,446 ​ (1) The 2023 Notes and 2026 Notes (defined below) are subject to capped call arrangements that potentially reduce the dilutive effect as described in “Note 7 — Unsecured Convertible Senior Notes.” Any potential impact of the capped call arrangements is excluded from this table.

Certain Balance Sheet Accounts

Certain Balance Sheet Accounts	6 Months Ended
	Jun. 30, 2023
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts	Note 5—Certain Balance Sheet Accounts OMIDRIA Contract Royalty Asset The OMIDRIA contract royalty asset consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2023 2022 ​ ​ (In thousands) Short-term contract royalty asset ​ $ 29,084 ​ $ 28,797 Long-term contract royalty asset ​ ​ 115,802 ​ ​ 123,425 Total OMIDRIA contract royalty asset ​ $ 144,886 ​ $ 152,222 ​ ​ Receivables Receivables consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2023 2022 ​ ​ (In thousands) OMIDRIA royalty ​ $ 11,066 ​ $ 12,966 Sublease and other ​ ​ 124 ​ ​ 255 OMIDRIA milestone ​ — ​ 200,000 Total receivables ​ $ 11,190 ​ $ 213,221 ​ Property and Equipment, Net Property and equipment, net consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ (In thousands) Equipment under finance lease obligations ​ $ 6,477 ​ $ 6,204 Laboratory equipment ​ 3,385 ​ 3,135 Computer equipment ​ 1,101 ​ 1,076 Office equipment and furniture ​ 625 ​ 625 Total cost ​ 11,588 ​ 11,040 Less accumulated depreciation and amortization ​ (9,839) ​ (9,548) Total property and equipment, net ​ $ 1,749 ​ $ 1,492 ​ For the three months ended June 30, 2023 and June 30, 2022, depreciation and amortization expense was $0.3 million and $0.2 million, respectively. For the six months ended June 30, 2023 and 2022, depreciation and amortization expense was $0.5 million for each period. Accrued Expenses Accrued expenses consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ (In thousands) Employee compensation ​ $ 7,342 ​ $ 6,665 Clinical trials ​ ​ 7,272 ​ ​ 5,536 Interest payable ​ ​ 6,160 ​ ​ 5,172 Contract research and development ​ ​ 4,043 ​ ​ 3,209 Consulting and professional fees ​ ​ 2,901 ​ ​ 4,425 Income taxes payable ​ ​ 1,228 ​ ​ 4,871 Other accrued expenses ​ 847 ​ 673 Total accrued expenses ​ $ 29,793 ​ $ 30,551 ​

Investments and Fair-Value Meas

Investments and Fair-Value Measurements	6 Months Ended
	Jun. 30, 2023
Investments and Fair-Value Measurements
Investments and Fair-Value Measurements	Note 6—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. Investment income is included as other income. Investment income for the three months ended June 30, 2023 and June 30, 2022 consists primarily of interest earned of $4.2 million and $0.2 million, respectively. Investment income for the six months ended June 30, 2023 and June 30, 2022 consists of interest earned of $7.6 million and $0.2 million, respectively. ​ The following tables summarize our investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 225,983 ​ $ (89) ​ $ 225,894 Money-market funds classified as short-term investments ​ ​ 108,697 ​ ​ — ​ ​ 108,697 Total short-term investments ​ ​ 334,680 ​ ​ (89) ​ ​ 334,591 Certificate of deposit classified as non-current restricted investments ​ ​ 1,054 ​ ​ — ​ ​ 1,054 Total ​ $ 335,734 ​ $ (89) ​ $ 335,645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 99,027 ​ $ 22 ​ $ 99,049 Money-market funds classified as short-term investments ​ ​ 84,882 ​ ​ — ​ ​ 84,882 Total short-term investments ​ ​ 183,909 ​ ​ 22 ​ ​ 183,931 Certificate of deposit classified as non-current restricted investments ​ ​ 1,054 ​ ​ — ​ ​ 1,054 Total ​ $ 184,963 ​ $ 22 ​ $ 184,985 ​ 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 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Level 1 Level 2 Level 3 Total ​ ​ (In thousands) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 225,894 ​ $ — ​ $ — ​ $ 225,894 Money-market funds classified as short-term investments ​ ​ 108,697 ​ ​ — ​ ​ — ​ ​ 108,697 Total short-term investments ​ ​ 334,591 ​ ​ — ​ ​ — ​ ​ 334,591 Certificate of deposit classified as non-current restricted investments ​ 1,054 ​ — ​ — ​ 1,054 Total ​ $ 335,645 ​ $ — ​ $ — ​ $ 335,645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Level 1 Level 2 Level 3 Total ​ ​ (In thousands) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 99,049 ​ $ — ​ $ — ​ $ 99,049 Money-market funds classified as short-term investments ​ ​ 84,882 ​ ​ — ​ ​ — ​ ​ 84,882 Total short-term investments ​ ​ 183,931 ​ ​ — ​ ​ — ​ ​ 183,931 Certificate of deposit classified as non-current restricted investments ​ 1,054 ​ — ​ — ​ 1,054 Total ​ $ 184,985 ​ $ — ​ $ — ​ $ 184,985 ​ Cash held in demand deposit accounts of $6.6 million and $11.0 million is excluded from our fair-value hierarchy disclosure as of June 30, 2023 and December 31, 2022, respectively. The carrying amounts reported in the accompanying condensed consolidated balance sheets for receivables, accounts payable and other current monetary assets and liabilities approximate fair value. See “Note 7—Unsecured Convertible Senior Notes” and “Note 8—OMIDRIA Royalty Obligation” for the carrying amount and estimated fair value of our outstanding convertible senior notes and the OMIDRIA royalty obligation.

Unsecured Convertible Senior No

Unsecured Convertible Senior Notes	6 Months Ended
	Jun. 30, 2023
Unsecured Convertible Senior Notes
Unsecured Convertible Senior Notes	Note 7—Unsecured Convertible Senior Notes We carry $95.0 million in aggregate principal on our 6.25% Convertible Senior Notes (the “2023 Notes” ) and $225.0 million in aggregate principal on our 5.25% Convertible Senior Notes (the “2026 Notes”) as shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2023 ​ 2023 Notes 2026 Notes Total ​ ​ (In thousands) Principal amount ​ $ 95,000 ​ $ 225,030 ​ $ 320,030 Unamortized debt issuance costs ​ (270) ​ (3,514) ​ (3,784) Total unsecured convertible senior notes, net ​ $ 94,730 ​ $ 221,516 ​ $ 316,246 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of outstanding unsecured convertible senior notes (1) ​ $ 93,575 ​ $ 157,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2022 ​ 2023 Notes 2026 Notes Total ​ ​ (In thousands) Principal amount ​ $ 95,000 ​ $ 225,030 ​ $ 320,030 Unamortized discount ​ (619) ​ (4,124) ​ (4,743) Total unsecured convertible senior notes, net ​ $ 94,381 ​ $ 220,906 ​ $ 315,287 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of outstanding unsecured convertible senior notes (1) ​ $ 92,031 ​ $ 118,141 ​ ​ ​ ​ (1) The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes. ​ 2023 Unsecured Convertible Senior Notes Our 2023 Notes are unsecured and accrue interest at an annual rate of 6.25% per annum, payable semi-annually in arrears on May 15 and November 15 of each year. The 2023 Notes mature on November 15, 2023 unless earlier purchased, redeemed or converted in accordance with their terms. The unamortized debt issuance costs of $0.3 million as of June 30, 2023 will be amortized to interest expense at an effective interest rate of 7.0% over the remaining term. Subject to the satisfaction of certain conditions, the 2023 Notes are convertible into cash, shares of our common stock or a combination thereof, as we elect at our sole discretion. The initial conversion rate is 52.0183 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $19.22 per share of common stock), which equals approximately 4.9 million shares of common stock issuable upon conversion, subject to adjustment in certain circumstances. To reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2023 Notes, we entered into a capped call transaction (the “2023 Capped Call”), which covers the number of shares of our common stock underlying the 2023 Notes when our common stock share price is trading between the initial conversion price of $19.22 and $28.84 . However, should the market price of our common stock exceed the $28.84 cap, then the conversion of the 2023 notes could have a dilutive impact or may require a cash expenditure to the extent the market price exceeds the cap price. As of June 30, 2023, approximately 4.9 million shares remained outstanding on the 2023 Capped Call. The following table sets forth total interest expense recognized in connection with the 2023 Notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2023 2022 2023 2022 ​ ​ (In thousands) ​ (In thousands) Contractual interest expense ​ $ 1,484 ​ $ 1,484 ​ $ 2,969 ​ $ 2,969 Amortization of debt issuance costs ​ 176 ​ 164 ​ 349 ​ 325 Total ​ $ 1,660 ​ $ 1,648 ​ $ 3,318 ​ $ 3,294 ​ 2026 Unsecured Convertible Senior Notes Our 2026 Notes are unsecured and accrue interest at an annual rate of 5.25% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes mature on February 15, 2026, unless earlier purchased, redeemed or converted in accordance with their terms. The unamortized debt issuance costs of $3.5 million as of June 30, 2023 will be amortized to interest expense at an effective interest rate of 5.9% over the remaining term. Subject to the satisfaction of certain conditions, the 2026 Notes are convertible into cash, shares of our common stock or a combination thereof, as we elect at our sole discretion. 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 of common stock issuable upon conversion, subject to adjustment in certain circumstances. To reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2026 Notes, we entered into capped call transactions (the “2026 Capped Calls”), which cover the number of shares of our common stock underlying the 2026 Notes when our common stock share price is trading between the initial conversion price of $18.49 and $26.10 . However, should the market price of our common stock exceed the $26.10 cap, then the conversion of the 2026 Notes would have a dilutive impact or may require a cash expenditure to the extent the market price exceeds the cap price. A s of June 30, 2023, approximately 12.2 million shares remained outstanding on the 2026 Capped Call. The following table sets forth interest expense recognized related to the 2026 Notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ 2022 ​ 2021 ​ ​ (In thousands) ​ (In thousands) Contractual interest expense ​ $ 2,954 ​ $ 2,954 ​ $ 5,907 ​ $ 5,907 Amortization of debt issuance costs ​ 307 ​ 290 ​ ​ 610 ​ ​ 575 Total ​ $ 3,261 ​ $ 3,244 ​ $ 6,517 ​ $ 6,482 ​ Future Minimum Principal Payments Future minimum principal payments for the 2023 Notes and 2026 Notes as of June 30, 2023 are as follows (in thousands): ​ ​ ​ ​ ​ 2023 $ 95,000 2024 ​ — 2025 ​ — 2026 ​ 225,030 Total future minimum principal payments under the 2023 Notes and 2026 Notes $ 320,030 ​

OMIDRIA Royalty Obligation

OMIDRIA Royalty Obligation	6 Months Ended
	Jun. 30, 2023
OMIDRIA Royalty Obligation
OMIDRIA Royalty Obligation	Note 8—OMIDRIA Royalty Obligation On September 30, 2022, we sold to DRI an interest in our future OMIDRIA royalty receipts and received $125.0 million in cash consideration, which was recorded as an OMIDRIA royalty obligation on our condensed consolidated balance sheet. DRI is entitled to receive royalties on OMIDRIA net sales through December 31, 2030, subject to annual caps. DRI receives their prorated monthly cap amount before we receive any royalty proceeds. DRI is not entitled to carry-forward nor recoup any shortfall if the royalties paid by Rayner for an annual period are less than the cap amount applicable to each discrete calendar year. Additionally, DRI has no recourse to or security interest in our assets other than our OMIDRIA royalty receipts, and we retain all royalty receipts in excess of the respective cap in any given calendar year. At June 30, 2023, the maximum remaining amount that DRI is entitled to receive through the term of the agreement (December 31, 2030) is $180.3 million, which, if fully paid, would be at an implied effective interest rate of 9.4% over the entire payment period. ​ For the three months and six months ended June 30, 2023, we incurred $3.0 million and $5.9 million, respectively, of cash interest expense. ​ We consider our OMIDRIA royalty obligation to be a Level 3 Held-to-Maturity obligation as its valuation relies on factors that are not easily observable in the market. As of June 30, 2023, the approximate fair value of our obligation is As of June 30, 2023, the maximum remaining scheduled principal and interest payments (based on an implied effective interest rate of 9.4%) are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Principal Interest Annual Cap ​ ​ (In thousands) 2023 ​ $ 589 ​ $ 5,911 ​ $ 6,500 2024 ​ 8,576 ​ 11,424 ​ ​ 20,000 2025 ​ 14,641 ​ 10,359 ​ ​ 25,000 2026 ​ 16,081 ​ 8,919 ​ ​ 25,000 2027 ​ 17,664 ​ 7,336 ​ ​ 25,000 Thereafter ​ 68,164 ​ 10,586 ​ ​ 78,750 Total scheduled payments ​ $ 125,715 ​ $ 54,535 ​ $ 180,250 ​

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases
Leases	Note 9—Leases We have an operating lease for our office and laboratory facilities with an initial term that ends in November 2027 and two options to extend the lease term by an additional five years each. Restricted investments of $1.1 million represent the security deposit on our office and laboratory facilities. On January 14, 2022, we entered into an agreement with our landlord to early terminate a portion of the rentable square footage of our office and laboratory facilities, which reduced the right of use asset by $4.7 million and related liability by $5.2 million. We recorded a non-cash gain of $0.5 million upon early termination of this portion of the lease. In addition, we carry various finance lease obligations for laboratory equipment. Supplemental lease information is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ June 30, ​ June 30, ​ 2023 ​ 2022 2023 2022 ​ (In thousands) ​ (In thousands) Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost $ 1,616 ​ $ 1,663 ​ $ 3,249 ​ $ 2,870 Finance lease cost: ​ ​ ​ ​ ​ ​ Amortization 271 ​ 122 ​ 389 ​ 320 Interest 41 ​ 36 ​ 92 ​ 92 Variable lease cost 757 ​ 722 ​ 1,547 ​ 1,582 Sublease income (375) ​ (453) ​ (750) ​ (945) Net lease cost $ 2,310 ​ $ 2,090 ​ $ 4,527 ​ $ 3,919 ​ Cash paid for amounts included in the measurement of lease liabilities is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2023 2022 ​ ​ (In thousands) Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Cash payments for operating leases ​ $ 3,568 ​ $ 3,562 Cash payments for financing leases ​ $ 336 $ 401 ​

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies.
Commitments and Contingencies	Note 10—Commitments and Contingencies Goods and Services Contracts We have various agreements with third parties that collectively require payment of termination fees totaling $21.2 million as of June 30, 2023 if we cancel the work within specific time frames, either prior to commencing or during performance of the contracted services . 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 or on approval of commercial sale as well as low single- to low double-digit royalties on the net income or net sales of the product. For the three months and six months ended June 30, 2023 and June 30, 2022, development milestone expenses were insignificant. Should narsoplimab be approved, we would owe milestone payments to development partners and could be obligated to pay low single-digit royalties on net sales of the product. In July 2023, we achieved a clinical development milestone in our OMS906 program that triggered a $5.0 million milestone payment obligation to a third-party licensor, which we expect to pay in the third quarter of 2023. This amount is excluded from the commitment amount above.

Shareholders' Equity (Deficit)

Shareholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2023
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit)	Note 11—Shareholders’ Equity (Deficit) Common Stock and Warrants On March 1, 2021, we entered into a sales agreement to sell shares of our common stock having an aggregate offering price of up to $150.0 million, from time to time, through an “at the market” equity offering program. As of June 30, 2023, we have not sold any shares under this program. On April 12, 2023, warrants to purchase 200,000 shares of our common stock with an exercise price of $23.00 per share expired without being exercised. We have no other warrants outstanding. Amendment of 2017 Omnibus Incentive Compensation Plan At our June 23, 2023 annual meeting, our shareholders approved a 5,000,000 share increase in the number of shares of our common stock available for grant under the 2017 Omnibus Incentive Compensation Plan, as amended and restated. The total number of shares of common stock available for grant as of June 30, 2023 was 10,175,852. ​

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Stock-Based Compensation.
Stock-Based Compensation	Note 12—Stock-Based Compensation ​ Our stock option plans provide for the grant of incentive and non-qualified stock options, restricted stock awards, RSUs, and other stock awards to employees, non-employee directors and consultants. Stock-based compensation is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 ​ ​ (In thousands) Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 1,133 ​ $ 1,389 ​ $ 2,405 ​ $ 3,104 Selling, general and administrative ​ 1,680 ​ 1,793 ​ 3,402 ​ 3,970 Total stock-based compensation in continuing operations ​ ​ 2,813 ​ ​ 3,182 ​ ​ 5,807 ​ ​ 7,074 Discontinued operations ​ ​ (42) ​ ​ (110) ​ ​ (83) ​ ​ (110) Total stock-based compensation ​ $ 2,771 ​ $ 3,072 ​ $ 5,724 ​ $ 6,964 ​ 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 ​ ​ Six Months Ended ​ ​ June 30, 2023 ​ ​ June 30, 2023 Estimated weighted-average fair value ​ $ 4.66 ​ ​ ​ $ 4.21 ​ Weighted-average assumptions: ​ ​ ​ ​ ​ ​ ​ Expected volatility ​ 92 % ​ ​ 92 % Expected life, in years ​ 7.3 ​ ​ ​ 7.1 ​ Risk-free interest rate ​ 3.74 % ​ ​ 3.74 % Expected dividend yield ​ — % ​ ​ — % ​ 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, 2022 13,872,973 ​ $ 11.02 ​ Granted 200,000 ​ 5.20 ​ Exercised (19,556) ​ 4.98 ​ Forfeited (437,821) ​ 10.46 ​ Balance at June 30, 2023 13,615,596 ​ $ 10.96 5.3 ​ $ 4,095 Vested and expected to vest at June 30, 2023 13,290,618 ​ $ 11.04 5.2 ​ $ 3,793 Exercisable at June 30, 2023 10,508,263 ​ $ 11.89 4.3 ​ $ 1,280 ​ Of the 13.6 million common stock options outstanding at June 30, 2023, 11.1 million have an exercise price per share above $5.44 which was the closing price of our common stock on the NASDAQ exchange on June 30, 2023. ​ As of June 30, 2023, there were 3.1 million unvested options outstanding that will vest over a weighted-average period of 1.9 years. The total estimated compensation expense yet to be recognized on outstanding options is $14.5 million. ​ The Company had 89,750 unvested RSUs outstanding as of June 30, 2023 that vest on December 1, 2023. The weighted average grant date fair value per share was $7.53.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Significant Accounting Policies
General	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. We marketed our first drug product, OMIDRIA ® ​ The lead drug candidate in our pipeline of complement-targeted therapeutics is narsoplimab, a proprietary, patented human monoclonal antibody targeting mannan-binding lectin-associated serine protease 2 (“MASP-2”), the key activator of the lectin pathway of complement. Clinical development of narsoplimab is currently focused primarily on hematopoietic stem cell transplant-associated thrombotic microangiopathy (“HSCT-TMA”) and immunoglobulin A (“IgA”) nephropathy. Our pipeline of clinical-stage development programs includes: our long-acting MASP-2 inhibitor OMS1029, our inhibitor of mannan-binding lectin-associated serine protease-3 (“MASP-3”) OMS906 and our phophodiesterase 7 (PDE7) inhibitor OMS527.
Sale of OMIDRIA Assets	Sale of OMIDRIA Assets On December 23, 2021, we sold our commercial product OMIDRIA and certain related assets including inventory and prepaid expenses to Rayner Surgical Inc. (“Rayner”). Rayner paid us $126.0 million in cash at closing, and we retained all outstanding accounts receivable, accounts payable and accrued expenses as of the closing date. ​ Under the Asset Purchase Agreement with Rayner (the “Asset Purchase Agreement”), we were entitled to receive a milestone payment of $200.0 million (the “Milestone Payment”) within 30 days following an event (the “Milestone Event”) that establishes separate payment for OMIDRIA for a continuous period of at least four years when furnished in the ambulatory surgery center (“ASC”) setting. In December 2022, the Milestone Event occurred and we recorded a $200.0 million milestone receivable. Upon the achievement of the Milestone Event, our royalties on U.S. net sales were reduced from 50% to 30%, with royalties on any net sales outside the U.S. remaining unchanged at 15%. We received the Milestone Payment together with accrued interest in February 2023. ​ As a result of the divestiture, the results of OMIDRIA operations (e.g., revenues and operating costs) are included in discontinued operations in our condensed consolidated statements of operations and comprehensive loss and excluded from continuing operations for all periods presented (see “Note 3 – Discontinued Operations”).
Basis of Presentation	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	Liquidity and Capital Resources As of June 30, 2023, we had cash, cash equivalents and short-term investments of $341.3 million and outstanding accounts receivable of $11.2 million. Our loss for the quarter ended June 30, 2023 was $37.3 million and our cash provided by operations for the six months ended June 30, 2023 was $142.2 million, which included collection of the $200.0 million Milestone Payment in the first quarter of 2023. ​ Historically, we have incurred net losses from continuing operations and negative operating cash flows. We have not yet established an ongoing source of revenue sufficient to cover our operating costs and, therefore, could need to raise additional capital to accomplish our business plan and to retire our outstanding convertible senior notes due in 2026. We plan to continue to fund our operations for at least the next twelve months with our existing cash and investments, royalties from Rayner and our outstanding accounts receivable. If FDA approves narsoplimab for treatment of any indication within the next twelve months, then sales of narsoplimab may also provide funds for our operations . We have a sales agreement in place for an “at the market” equity offering facility through which we may offer and sell shares of our common stock equaling an aggregate amount up to $150.0 million. Should it be determined to be strategically advantageous, we could also pursue debt financings as well as public and private offerings of our equity securities, similar to those we have previously completed, or other strategic transactions, which may include licensing a portion of our existing technologies.
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 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.
OMIDRIA Royalties, Milestones and OMIDRIA Contract Royalty Assets	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 used the expected value approach which is the sum of the discounted probability-weighted royalty payment 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 occur. As contemplated by the Asset Purchase Agreement, the royalty rate applicable to U.S. net sales of OMIDRIA was reduced from 50% to 30% upon the occurrence, in December 2022, of the event triggering the $200.0 million Milestone Payment. Consequently, in December 2022, we revalued the OMIDRIA contract royalty asset using the 30% royalty rate on U.S. net sales and adjusted the probability-weighted outcomes to reflect the occurrence of the Milestone Event. Royalties earned are recorded as a reduction to the OMIDRIA contract royalty asset. The amount recorded in discontinued operations in future periods will reflect interest earned on the outstanding OMIDRIA contract royalty asset at an effective interest rate of 11.0% and any amounts we receive that are different from the expected royalties. The OMIDRIA contract royalty asset will be re-measured periodically using the expected value approach based on actual results and future expectations. Any required adjustment to the OMIDRIA contract royalty asset will be recorded in discontinued operations.
OMIDRIA Royalty Obligation	OMIDRIA Royalty Obligation On September 30, 2022, we sold to DRI Healthcare Acquisitions LP (“DRI”) an interest in a portion of our future OMIDRIA royalty receipts for a purchase price of $125.0 million in cash (see “Note 8 – OMIDRIA Royalty Obligation”). The $125.0 million cash consideration obtained is classified as a liability and is recorded as an “OMIDRIA royalty obligation” on our condensed consolidated balance sheet. The liability is being amortized over the term of the arrangement using the implied effective interest rate of 9.4% and interest expense is recorded as a component of continuing operations. 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 original effective interest rate of 9.4% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations.
Inventory	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-party manufacturing, transportation and internal labor and overhead, will be capitalized.
Right of Use Assets and Related Lease Liabilities	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 readily available. We recognize variable lease payments, when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. 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 months or less as an operating expense
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards and restricted stock units (“RSU”) based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes valuation model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected option life. 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.
Income Taxes	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 bases. 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 of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2023
Discontinued Operations
Schedule of contract royalty asset	​ ​ ​ ​ ​ OMIDRIA contract royalty asset at December 31, 2022 ​ $ 152,222 Royalties earned ​ ​ (19,914) Interest earned on OMIDRIA contract royalty asset ​ ​ 7,754 Remeasurement adjustments ​ ​ 4,824 OMIDRIA contract royalty asset at June 30, 2023 ​ $ 144,886
Schedule of net income from discontinued operation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ 2023 2022 ​ ​ (In thousands) Interest earned on OMIDRIA contract royalty asset ​ $ 3,829 ​ $ 4,545 ​ $ 7,754 ​ $ 9,383 Remeasurement adjustments ​ ​ 3,147 ​ ​ 5,557 ​ ​ 4,824 ​ ​ 7,716 Other income (expense), net ​ ​ 24 ​ ​ 744 ​ ​ 404 ​ ​ 230 Net income from discontinued operations, net of tax ​ $ 7,000 ​ $ 10,846 ​ $ 12,982 ​ $ 17,329
Schedule of cash flow from discontinued operation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2023 2022 ​ ​ (In thousands) Net cash provided by discontinued operations from operating activities ​ $ 217,688 ​ $ 46,038

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Net Loss Per Share
Schedule of Potentially dilutive securities excluded from Diluted EPS	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 2026 Notes convertible to common stock (1) ​ 12,172,008 ​ 12,172,008 ​ 12,172,008 ​ 12,172,008 2023 Notes convertible to common stock (1) ​ 4,941,739 ​ 4,941,739 ​ 4,941,739 ​ 4,941,739 Outstanding options to purchase common stock ​ 98,920 88 ​ 42,186 1,963 Outstanding restricted stock units ​ 89,750 ​ 208,819 ​ 89,750 ​ 207,736 Total potentially dilutive shares excluded from net loss per share ​ 17,302,417 17,322,654 ​ 17,245,683 17,323,446 ​ (1) The 2023 Notes and 2026 Notes (defined below) are subject to capped call arrangements that potentially reduce the dilutive effect as described in “Note 7 — Unsecured Convertible Senior Notes.” Any potential impact of the capped call arrangements is excluded from this table.

Certain Balance Sheet Accounts

Certain Balance Sheet Accounts (Tables)	6 Months Ended
	Jun. 30, 2023
Certain Balance Sheet Accounts
Schedule of OMIDRIA contact royalty asset	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2023 2022 ​ ​ (In thousands) Short-term contract royalty asset ​ $ 29,084 ​ $ 28,797 Long-term contract royalty asset ​ ​ 115,802 ​ ​ 123,425 Total OMIDRIA contract royalty asset ​ $ 144,886 ​ $ 152,222
Schedule of accounts receivable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2023 2022 ​ ​ (In thousands) OMIDRIA royalty ​ $ 11,066 ​ $ 12,966 Sublease and other ​ ​ 124 ​ ​ 255 OMIDRIA milestone ​ — ​ 200,000 Total receivables ​ $ 11,190 ​ $ 213,221
Property, Plant and Equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ (In thousands) Equipment under finance lease obligations ​ $ 6,477 ​ $ 6,204 Laboratory equipment ​ 3,385 ​ 3,135 Computer equipment ​ 1,101 ​ 1,076 Office equipment and furniture ​ 625 ​ 625 Total cost ​ 11,588 ​ 11,040 Less accumulated depreciation and amortization ​ (9,839) ​ (9,548) Total property and equipment, net ​ $ 1,749 ​ $ 1,492
Accrued Expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ (In thousands) Employee compensation ​ $ 7,342 ​ $ 6,665 Clinical trials ​ ​ 7,272 ​ ​ 5,536 Interest payable ​ ​ 6,160 ​ ​ 5,172 Contract research and development ​ ​ 4,043 ​ ​ 3,209 Consulting and professional fees ​ ​ 2,901 ​ ​ 4,425 Income taxes payable ​ ​ 1,228 ​ ​ 4,871 Other accrued expenses ​ 847 ​ 673 Total accrued expenses ​ $ 29,793 ​ $ 30,551

Investments and Fair-Value Me_2

Investments and Fair-Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Investments and Fair-Value Measurements
Fair value of investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 225,983 ​ $ (89) ​ $ 225,894 Money-market funds classified as short-term investments ​ ​ 108,697 ​ ​ — ​ ​ 108,697 Total short-term investments ​ ​ 334,680 ​ ​ (89) ​ ​ 334,591 Certificate of deposit classified as non-current restricted investments ​ ​ 1,054 ​ ​ — ​ ​ 1,054 Total ​ $ 335,734 ​ $ (89) ​ $ 335,645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 99,027 ​ $ 22 ​ $ 99,049 Money-market funds classified as short-term investments ​ ​ 84,882 ​ ​ — ​ ​ 84,882 Total short-term investments ​ ​ 183,909 ​ ​ 22 ​ ​ 183,931 Certificate of deposit classified as non-current restricted investments ​ ​ 1,054 ​ ​ — ​ ​ 1,054 Total ​ $ 184,963 ​ $ 22 ​ $ 184,985
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Level 1 Level 2 Level 3 Total ​ ​ (In thousands) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 225,894 ​ $ — ​ $ — ​ $ 225,894 Money-market funds classified as short-term investments ​ ​ 108,697 ​ ​ — ​ ​ — ​ ​ 108,697 Total short-term investments ​ ​ 334,591 ​ ​ — ​ ​ — ​ ​ 334,591 Certificate of deposit classified as non-current restricted investments ​ 1,054 ​ — ​ — ​ 1,054 Total ​ $ 335,645 ​ $ — ​ $ — ​ $ 335,645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Level 1 Level 2 Level 3 Total ​ ​ (In thousands) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government securities classified as short-term investments ​ $ 99,049 ​ $ — ​ $ — ​ $ 99,049 Money-market funds classified as short-term investments ​ ​ 84,882 ​ ​ — ​ ​ — ​ ​ 84,882 Total short-term investments ​ ​ 183,931 ​ ​ — ​ ​ — ​ ​ 183,931 Certificate of deposit classified as non-current restricted investments ​ 1,054 ​ — ​ — ​ 1,054 Total ​ $ 184,985 ​ $ — ​ $ — ​ $ 184,985

Unsecured Convertible Senior _2

Unsecured Convertible Senior Notes (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Instrument [Line Items]
Summary of unsecured convertible senior notes outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2023 ​ 2023 Notes 2026 Notes Total ​ ​ (In thousands) Principal amount ​ $ 95,000 ​ $ 225,030 ​ $ 320,030 Unamortized debt issuance costs ​ (270) ​ (3,514) ​ (3,784) Total unsecured convertible senior notes, net ​ $ 94,730 ​ $ 221,516 ​ $ 316,246 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of outstanding unsecured convertible senior notes (1) ​ $ 93,575 ​ $ 157,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2022 ​ 2023 Notes 2026 Notes Total ​ ​ (In thousands) Principal amount ​ $ 95,000 ​ $ 225,030 ​ $ 320,030 Unamortized discount ​ (619) ​ (4,124) ​ (4,743) Total unsecured convertible senior notes, net ​ $ 94,381 ​ $ 220,906 ​ $ 315,287 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of outstanding unsecured convertible senior notes (1) ​ $ 92,031 ​ $ 118,141 ​ ​ ​ ​ (1) The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes. ​
Schedule of future minimum payments of debt	​ ​ ​ ​ ​ 2023 $ 95,000 2024 ​ — 2025 ​ — 2026 ​ 225,030 Total future minimum principal payments under the 2023 Notes and 2026 Notes $ 320,030
2023 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Schedule of total interest expense recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2023 2022 2023 2022 ​ ​ (In thousands) ​ (In thousands) Contractual interest expense ​ $ 1,484 ​ $ 1,484 ​ $ 2,969 ​ $ 2,969 Amortization of debt issuance costs ​ 176 ​ 164 ​ 349 ​ 325 Total ​ $ 1,660 ​ $ 1,648 ​ $ 3,318 ​ $ 3,294
2026 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Schedule of total interest expense recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ 2022 ​ 2021 ​ ​ (In thousands) ​ (In thousands) Contractual interest expense ​ $ 2,954 ​ $ 2,954 ​ $ 5,907 ​ $ 5,907 Amortization of debt issuance costs ​ 307 ​ 290 ​ ​ 610 ​ ​ 575 Total ​ $ 3,261 ​ $ 3,244 ​ $ 6,517 ​ $ 6,482

OMIDRIA Royalty Obligation (Tab

OMIDRIA Royalty Obligation (Tables)	6 Months Ended
	Jun. 30, 2023
OMIDRIA Royalty Obligation
Schedule of maximum remaining scheduled principal and interest payments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Principal Interest Annual Cap ​ ​ (In thousands) 2023 ​ $ 589 ​ $ 5,911 ​ $ 6,500 2024 ​ 8,576 ​ 11,424 ​ ​ 20,000 2025 ​ 14,641 ​ 10,359 ​ ​ 25,000 2026 ​ 16,081 ​ 8,919 ​ ​ 25,000 2027 ​ 17,664 ​ 7,336 ​ ​ 25,000 Thereafter ​ 68,164 ​ 10,586 ​ ​ 78,750 Total scheduled payments ​ $ 125,715 ​ $ 54,535 ​ $ 180,250

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
Schedule of lease costs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ June 30, ​ June 30, ​ 2023 ​ 2022 2023 2022 ​ (In thousands) ​ (In thousands) Lease cost ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost $ 1,616 ​ $ 1,663 ​ $ 3,249 ​ $ 2,870 Finance lease cost: ​ ​ ​ ​ ​ ​ Amortization 271 ​ 122 ​ 389 ​ 320 Interest 41 ​ 36 ​ 92 ​ 92 Variable lease cost 757 ​ 722 ​ 1,547 ​ 1,582 Sublease income (375) ​ (453) ​ (750) ​ (945) Net lease cost $ 2,310 ​ $ 2,090 ​ $ 4,527 ​ $ 3,919
Schedule of cash paid for amounts included in the measurement of lease liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ 2023 2022 ​ ​ (In thousands) Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Cash payments for operating leases ​ $ 3,568 ​ $ 3,562 Cash payments for financing leases ​ $ 336 $ 401

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Stock-Based Compensation.
Stock-Based Compensation Expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 ​ ​ (In thousands) Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 1,133 ​ $ 1,389 ​ $ 2,405 ​ $ 3,104 Selling, general and administrative ​ 1,680 ​ 1,793 ​ 3,402 ​ 3,970 Total stock-based compensation in continuing operations ​ ​ 2,813 ​ ​ 3,182 ​ ​ 5,807 ​ ​ 7,074 Discontinued operations ​ ​ (42) ​ ​ (110) ​ ​ (83) ​ ​ (110) Total stock-based compensation ​ $ 2,771 ​ $ 3,072 ​ $ 5,724 ​ $ 6,964 ​
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Six Months Ended ​ ​ June 30, 2023 ​ ​ June 30, 2023 Estimated weighted-average fair value ​ $ 4.66 ​ ​ ​ $ 4.21 ​ Weighted-average assumptions: ​ ​ ​ ​ ​ ​ ​ Expected volatility ​ 92 % ​ ​ 92 % Expected life, in years ​ 7.3 ​ ​ ​ 7.1 ​ Risk-free interest rate ​ 3.74 % ​ ​ 3.74 % Expected dividend yield ​ — % ​ ​ — %
Schedule of Stock Option Activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ Aggregate ​ ​ ​ ​ Exercise ​ Remaining ​ Intrinsic ​ ​ Options ​ Price per ​ Contractual Life ​ Value ​ ​ Outstanding ​ Share ​ (In years) ​ (In thousands) Balance at December 31, 2022 13,872,973 ​ $ 11.02 ​ Granted 200,000 ​ 5.20 ​ Exercised (19,556) ​ 4.98 ​ Forfeited (437,821) ​ 10.46 ​ Balance at June 30, 2023 13,615,596 ​ $ 10.96 5.3 ​ $ 4,095 Vested and expected to vest at June 30, 2023 13,290,618 ​ $ 11.04 5.2 ​ $ 3,793 Exercisable at June 30, 2023 10,508,263 ​ $ 11.89 4.3 ​ $ 1,280 ​ Of the 13.6 million common stock options outstanding at June 30, 2023, 11.1 million have an exercise price per share above $5.44 which was the closing price of our common stock on the NASDAQ exchange on June 30, 2023. ​

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended				6 Months Ended
	Dec. 23, 2021	Feb. 28, 2023	Dec. 31, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 01, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Milestone Payment to be received under the Asset Purchase Agreement	$ 200,000
Period payment is due after milestone period achieved	30 days
Milestone period	4 years
Milestone Payment receivable			$ 200,000
Percentage of royalty receivable	50%		30%
Percentage of royalties received outside of U.S.								15%
Cash, cash equivalents and short-term investments				$ 341,300				$ 341,300
Receivables			$ 213,221	11,190				11,190
Net loss				37,294	$ 33,701	$ 30,849	$ 33,011	70,995	$ 63,860
Net cash provided by operating activities								142,198	$ (34,662)
Cash from collection of the Milestone Payment		$ 200,000			$ 200,000
Discontinued Operation | Omidria Assets Disposal
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds on sale of OMIDRIA	$ 126,000
At The Market (ATM) Program
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum aggregate offering price				$ 150,000				$ 150,000		$ 150,000

Significant Accounting Polici_3

Significant Accounting Policies - Discontinued Operations (Details) - USD ($) $ in Millions			1 Months Ended
	Sep. 30, 2022	Dec. 23, 2021	Dec. 31, 2022	Jun. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of royalty receivable		50%	30%
Milestone Payment receivable			$ 200
Effective interest rate earned on outstanding contract royalty asset				11%
DRI
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds received upon entering into OMIDRIA royalty obligation	$ 125
OMIDRIA royalty obligation	$ 125
Effective interest rate on royalty obligation				9.40%

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - USD ($) $ in Millions		1 Months Ended
	Dec. 23, 2021	Dec. 31, 2022
Discontinued Operations
Milestone period	4 years
Milestone Payment to be received under the Asset Purchase Agreement	$ 200
Percentage of royalty receivable	50%	30%
Milestone Payment receivable		$ 200
Percent of potential reduction in royalty receivable per Asset Purchase Agreement	10%

Discontinued Operations - OMIDR

Discontinued Operations - OMIDRIA contract royalty asset (Details) - Discontinued Operation - Omidria Assets Disposal - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
OMIDRIA contract royalty asset, beginning balance			$ 152,222
Royalties earned			(19,914)
Interest earned on OMIDRIA contract royalty asset	$ 3,829	$ 4,545	7,754	$ 9,383
Remeasurement adjustments	3,147	$ 5,557	4,824	$ 7,716
OMIDRIA contract royalty asset, ending balance	$ 144,886		$ 144,886

Discontinued Operations - Net I

Discontinued Operations - Net Income Loss (Details) - Discontinued Operation - Omidria Assets Disposal - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest earned on OMIDRIA contract royalty asset	$ 3,829	$ 4,545	$ 7,754	$ 9,383
Remeasurement adjustments	3,147	5,557	4,824	7,716
Other income (expense), net	24	744	404	230
Net income from discontinued operations, net of tax	$ 7,000	$ 10,846	$ 12,982	$ 17,329

Discontinued Operations - Cash

Discontinued Operations - Cash Flow (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash from collection of the Milestone Payment	$ 200,000	$ 200,000
Discontinued Operation | Omidria Assets Disposal
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash provided by discontinued operations from operating activities			$ 217,688	$ 46,038

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded from net income (loss) per share	17,302,417	17,322,654	17,245,683	17,323,446
2026 Unsecured Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded from net income (loss) per share	12,172,008	12,172,008	12,172,008	12,172,008
2023 Unsecured Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded from net income (loss) per share	4,941,739	4,941,739	4,941,739	4,941,739
Outstanding options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded from net income (loss) per share	98,920	88	42,186	1,963
Employee restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded from net income (loss) per share	89,750	208,819	89,750	207,736

Certain Balance Sheet Account_2

Certain Balance Sheet Accounts - Contract Royalty Asset (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Certain Balance Sheet Accounts
Short-term contract royalty asset	$ 29,084	$ 28,797
Long-term contract royalty asset	115,802	123,425
Total OMIDRIA contract royalty asset	$ 144,886	$ 152,222

Certain Balance Sheet Account_3

Certain Balance Sheet Accounts - Receivables, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Certain Balance Sheet Accounts
OMIDRIA royalty	$ 11,066	$ 12,966
Sublease and other	124	255
OMIDRIA milestone		200,000
Total receivables	$ 11,190	$ 213,221

Certain Balance Sheet Account_4

Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total cost	$ 11,588		$ 11,588		$ 11,040
Less accumulated depreciation and amortization	(9,839)		(9,839)		(9,548)
Total property and equipment, net	1,749		1,749		1,492
Depreciation and amortization expense	300	$ 200	518	$ 469
Equipment under finance lease obligations
Property, Plant and Equipment [Line Items]
Total cost	6,477		6,477		6,204
Laboratory equipment
Property, Plant and Equipment [Line Items]
Total cost	3,385		3,385		3,135
Computer equipment
Property, Plant and Equipment [Line Items]
Total cost	1,101		1,101		1,076
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Total cost	$ 625		$ 625		$ 625

Certain Balance Sheet Account_5

Certain Balance Sheet Accounts - Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued expenses
Employee compensation	$ 7,342	$ 6,665
Clinical trials	7,272	5,536
Interest payable	6,160	5,172
Contract research and development	4,043	3,209
Consulting and professional fees	2,901	4,425
Income taxes payable	1,228	4,871
Other accrued expenses	847	673
Total accrued expenses	$ 29,793	$ 30,551

Investments and Fair-Value Me_3

Investments and Fair-Value Measurements - Fair value of investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value of investment [Line items]
Investment income, interest	$ 4,200	$ 200	$ 7,600	$ 200
Amortized cost, current	334,680		334,680		$ 183,909
Amortized cost, total	335,734		335,734		184,963
Gross unrealized gains (losses)	(89)		(89)		22
Estimated Fair Value, Current	334,591		334,591		183,931
Estimated Fair Value, total	335,645		335,645		184,985
US Treasury Securities
Fair Value of investment [Line items]
Amortized cost, current	225,983		225,983		99,027
Gross unrealized gains (losses)	(89)		(89)		22
Estimated Fair Value, Current	225,894		225,894		99,049
Money Market Funds
Fair Value of investment [Line items]
Amortized cost, current	108,697		108,697		84,882
Estimated Fair Value, Current	108,697		108,697		84,882
Certificates of Deposit [Member]
Fair Value of investment [Line items]
Amortized cost, noncurrent	1,054		1,054		1,054
Estimated Fair Value, Noncurrent	$ 1,054		$ 1,054		$ 1,054

Investments and Fair-Value Me_4

Investments and Fair-Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities
Short-term investments	$ 334,680	$ 183,909
Certificates of deposit classified as non-current restricted investments	1,054	1,054
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities
Short-term investments	334,591	183,931
Certificates of deposit classified as non-current restricted investments	1,054	1,054
Total	335,645	184,985
Fair Value, Measurements, Recurring | Money Market Funds
Fair Value, Assets and Liabilities
Short-term investments	108,697	84,882
Fair Value, Measurements, Recurring | US Treasury Securities
Fair Value, Assets and Liabilities
Short-term investments	225,894	99,049
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities
Short-term investments	334,591	183,931
Certificates of deposit classified as non-current restricted investments	1,054	1,054
Total	335,645	184,985
Fair Value, Measurements, Recurring | Level 1 | Money Market Funds
Fair Value, Assets and Liabilities
Short-term investments	108,697	84,882
Fair Value, Measurements, Recurring | Level 1 | US Treasury Securities
Fair Value, Assets and Liabilities
Short-term investments	$ 225,894	$ 99,049

Investments and Fair-Value Me_5

Investments and Fair-Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments and Fair-Value Measurements
Cash held in demand deposit accounts	$ 6,603	$ 11,009

Unsecured Convertible Senior _3

Unsecured Convertible Senior Notes - Unsecured convertible senior notes outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2020	Nov. 30, 2018
Debt Instrument [Line Items]
Principal amount	$ 320,030	$ 320,030
Unamortized discount		(4,743)
Unamortized debt issuance costs	(3,784)
Total unsecured convertible senior notes, net	316,246	315,287
2023 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 95,000	95,000
Interest rate (as a percent)	6.25%			6.25%
Unamortized discount		(619)
Unamortized debt issuance costs	$ (270)
Total unsecured convertible senior notes, net	94,730	94,381
Fair value of outstanding unsecured convertible senior notes (1)	93,575	92,031
2026 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 225,030	225,030
Interest rate (as a percent)	5.25%		5.25%
Unamortized discount		(4,124)
Unamortized debt issuance costs	$ (3,514)
Total unsecured convertible senior notes, net	221,516	220,906
Fair value of outstanding unsecured convertible senior notes (1)	$ 157,359	$ 118,141

Unsecured Convertible Senior _4

Unsecured Convertible Senior Notes - 2023 Unsecured Convertible Senior Notes (Details) $ / shares in Units, shares in Millions	1 Months Ended
	Nov. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares
Debt Instrument [Line Items]
Unamortized debt issuance costs | $		$ 3,784,000
2023 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	6.25%	6.25%
Unamortized debt issuance costs | $		$ 270,000
Conversion rate	0.0520183
Value used in calculation of conversion rate | $	$ 1,000
Conversion price | $ / shares	$ 19.22
Shares upon conversion | shares	4.9
Effective interest rate to determine fair value of liability component (as a percent)		7%
Number of shares outstanding on the 2023 Capped Call | shares		4.9
2023 Unsecured Convertible Senior Notes | Minimum
Debt Instrument [Line Items]
Conversion price | $ / shares	$ 19.22
2023 Unsecured Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Conversion price | $ / shares	$ 28.84

Unsecured Convertible Senior _5

Unsecured Convertible Senior Notes - Interest expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
2023 Unsecured Convertible Senior Notes
Interest Expense, Debt [Abstract]
Contractual interest expense	$ 1,484	$ 1,484	$ 2,969	$ 2,969
Amortization of debt issuance costs	176	164	349	325
Total	1,660	1,648	3,318	3,294
2026 Unsecured Convertible Senior Notes
Interest Expense, Debt [Abstract]
Contractual interest expense	2,954	2,954	5,907	5,907
Amortization of debt issuance costs	307	290	610	575
Total	$ 3,261	$ 3,244	$ 6,517	$ 6,482

Unsecured Convertible Senior _6

Unsecured Convertible Senior Notes - 2026 Unsecured Convertible Senior Notes (Details) $ / shares in Units, shares in Millions	2 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares
Debt Instrument [Line Items]
Unamortized debt issuance costs | $		$ 3,784,000
2026 Unsecured Convertible Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	5.25%	5.25%
Unamortized debt issuance costs | $		$ 3,514,000
Effective interest rate to determine fair value of liability component (as a percent)		5.90%
Conversion rate	0.0540906
Value used in calculation of conversion rate | $	$ 1,000
Conversion price | $ / shares	$ 18.4875
Shares upon conversion | shares	12.2
Number of shares outstanding on the 2026 Capped Call | shares		12.2
2026 Unsecured Convertible Senior Notes | Minimum
Debt Instrument [Line Items]
Conversion price | $ / shares	$ 18.49
2026 Unsecured Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Conversion price | $ / shares	$ 26.10

Unsecured Convertible Senior _7

Unsecured Convertible Senior Notes - Future minimum payments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Long-term Debt, Fiscal Year Maturity [Abstract]
Total future minimum principal payments under 2023 Notes and 2026 Notes	$ 320,030	$ 320,030
2023 and 2026 Convertible Senior Notes
Long-term Debt, Fiscal Year Maturity [Abstract]
2023	95,000
2026	225,030
Total future minimum principal payments under 2023 Notes and 2026 Notes	$ 320,030

OMIDRIA Royalty Obligation - Na

OMIDRIA Royalty Obligation - Narrative (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2023
Royalty Obligation
Cash contractual interest expense		$ 3	$ 5.9
DRI
Royalty Obligation
Proceeds received upon entering into OMIDRIA royalty obligation	$ 125
Maximum payout payable		$ 180.3	$ 180.3
Maximum Royalty Payable Percentage		9.40%	9.40%

OMIDRIA Royalty Obligation - Fa

OMIDRIA Royalty Obligation - Fair Value (Details) $ in Millions	Jun. 30, 2023 USD ($)
Royalty Obligation | Level 3
Fair Value, Assets and Liabilities
Liabilities, Fair Value Disclosure	$ 117.1

OMIDRIA Royalty Obligation - Sc

OMIDRIA Royalty Obligation - Schedule of maximum scheduled principal and interest payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Principal
2023	$ 589
2024	8,576
2025	14,641
2026	16,081
2027	17,664
Thereafter	68,164
Total scheduled payments	125,715
Interest
2023	5,911
2024	11,424
2025	10,359
2026	8,919
2027	7,336
Thereafter	10,586
Total scheduled payments	54,535
Total Annual Cap
2023	6,500
2024	20,000
2025	25,000
2026	25,000
2027	25,000
Thereafter	78,750
Total scheduled payments	$ 180,250

Leases (Details)

Leases (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 14, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Leases
Number of options to extend lease term | item		2		2
Restricted investments		$ 1,054		$ 1,054		$ 1,054
Expected lease term		5 years		5 years
Decrease in right of use asset due to lease termination	$ 4,700
Decrease in lease liability due to lease termination	5,200
Non-cash gain of termination of lease	$ 500				$ 454
Lease cost
Operating lease cost		$ 1,616	$ 1,663	$ 3,249	2,870
Amortization		271	122	389	320
Interest		41	36	92	92
Variable lease cost		757	722	1,547	1,582
Sublease income		(375)	(453)	(750)	(945)
Net lease cost		$ 2,310	$ 2,090	4,527	3,919
Cash payments for operating leases				3,568	3,562
Cash payments for financing leases				$ 336	$ 401

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Millions	Jul. 31, 2023	Jun. 30, 2023
Other Commitments [Line Items]
Contract termination fees		$ 21.2
Subsequent Event
Other Commitments [Line Items]
Contractual milestone payment payable	$ 5

Shareholders' Equity (Deficit)

Shareholders' Equity (Deficit) (Details) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	Jun. 23, 2023	Jun. 30, 2023	Apr. 12, 2023	Dec. 31, 2022	Mar. 01, 2021
Class of Stock [Line Items]
Number of warrants to purchase common stock which expired			200,000
Warrant exercise price (in USD per share)			$ 23
Warrants outstanding		0
Common stock, authorized shares		150,000,000		150,000,000
Exercise price		$ 11.89
Vest monthly on a straight-line basis		4 years 3 months 18 days
Shares available for future grants (shares)		10,175,852
Amended 2017 Omnibus Incentive Compensation Plan
Class of Stock [Line Items]
Increase in shares available for grant	5,000,000
At The Market (ATM) Program
Class of Stock [Line Items]
Maximum aggregate offering price		$ 150			$ 150

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation in continuing operations	$ 2,813	$ 3,182	$ 5,807	$ 7,074
Discontinued operations	(42)	(110)	(83)	(110)
Total stock-based compensation	2,771	3,072	5,724	6,964
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation in continuing operations	1,133	1,389	2,405	3,104
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation in continuing operations	$ 1,680	$ 1,793	$ 3,402	$ 3,970

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Employee Option Grant Estimated on Date of Grant (Details) - Outstanding options to purchase common stock - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award
Estimated weighted-average fair value (USD per share)	$ 4.66	$ 4.21
Weighted Average
Weighted-average assumptions:
Expected volatility	92%	92%
Expected life, in years	7 years 3 months 18 days	7 years 1 month 6 days
Risk-free interest rate	3.74%	3.74%
Expected dividend yield	0%	0%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Options Outstanding
Beginning balance (shares) | shares	13,872,973
Granted (shares) | shares	200,000
Exercised (in shares) | shares	(19,556)
Forfeited (shares) | shares	(437,821)
Ending balance (shares) | shares	13,615,596
Vested and expected to vest (shares) | shares	13,290,618
Exercisable (shares) | shares	10,508,263
Weighted-Average Exercise Price per Share
Beginning balance (USD per share) | $ / shares	$ 11.02
Granted (USD per share) | $ / shares	5.20
Exercised (USD per share) | $ / shares	4.98
Forfeited (USD per share) | $ / shares	10.46
Ending balance (USD per share) | $ / shares	10.96
Vested and expected to vest (USD per share) | $ / shares	11.04
Exercisable (USD per share) | $ / shares	$ 11.89
Weighted- Average Remaining Contractual Life
Balance (in years)	5 years 3 months 18 days
Vested and expected to vest (in years)	5 years 2 months 12 days
Exercisable (in years)	4 years 3 months 18 days
Aggregate Intrinsic Value
Balance | $	$ 4,095
Vested and expected to vest | $	3,793
Exercisable | $	$ 1,280

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Options outstanding	13,615,596	13,872,973
Number of options outstanding with exercise price above the closing stock price on NASDAQ exchange	11,100,000
Stock price	$ 5.44
Outstanding options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award
Unvested options outstanding (shares)	3,100,000
Period for recognition	1 year 10 months 24 days
Unrecognized compensation expense	$ 14.5
Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, unvested	89,750
Weighted average grant-date fair value (USD per share)	$ 7.53