Over $100 Million in the Red, and All Smiles
Your accumulated deficit, as of your last 10-Q, stood at around $133 million. In an 8-K filed today, you announced you were borrowing $10 million, and using almost all of it to pay off a debt that had been sitting around collecting interest for over two years. Oh yes, and you’re based in Seattle, where the winter rainy season has already arrived in full force — likely to stick around until, oh, the 4th of July or so.
So why are you smiling? And why is your stock up 13% today? If you’re Omeros Corporation, it’s because:
(1) You’re a development stage company in the biopharm/biotech industry, where the nature of the game is to spend years keeping your head above water and your eyes on the prize — a significant, and ideally headline-garnering, scientific breakthrough — buoyed by the knowledge that if you succeed, the only thing you’ll need to keep your head above is all the money you’re swimming in;
(2) The same 8-K announcing your $10 million loan announces you’ve been awarded a $5 million grant from the State of Washington’s Life Sciences Discovery Fund (LSDF);
(3) That very same 8-K also announces you’re receiving $20 million in venture capital funding from Vulcan Capital, the investment group of billionaire and Microsoft co-founder Paul Allen; and
(4) What rainy season? It’s actually 75 degrees and sunny today in Seattle.
Okay, well, three out of four ain’t bad.