Seattle, Wash. • (206) 676-5000 • www.omeros.com
IPO DETAILS
IPO Date: 10/8/09
Exchange and Ticker: Nasdaq: OMER
Filing Range: 6.8M shares @ $10.00 to $12.00
Offering Price: $10.00
Close on First Day: $8.73
Offering Size: $68.20M
Shares Outstanding: 21,287,580
Underwriter: Deutsche Bank Securities Corp.
Co-managers: Wedbush Securities/ Canaccord Adams/ Needham & Co. Inc./ Chicago Investment Group LLC/ National Securities Corp. (U.S.)
Company Counsel: Wilson Sonsini Goodrich & Rosati
Manager Counsel: Morrison & Foerster
Auditor: Ernst & Young LLP
Market Capitalization on 10/30/09: $114.95M
Close price at current month end: $5.40
Total VC prior to IPO: $79.33M
COMPANY DESCRIPTION
Omeros is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of products focused on inflammation and disorders of the central nervous system. The company develops pharmaceutical and therapeutic approaches to the management of surgical pain and inflammation, vasospasm, smooth muscle spasm, vascular restenosis and implantable surgical devices. Omeros develops products that are delivered directly to the site of tissue injury, preemptively inhibiting inflammation, pain and other problems associated with medical and surgical procedures.
VENTURE BACKERS
Aravis SA (fka Venture Associates AG), ARCH Venture Partners, CSK Venture Capital Co. Ltd., Encompass Ventures Management Co., Great American Insurance Co., Grosvenor Funds, Itochu Technology Inc., Novartis Venture Fund, Suez Ventures, Trans Cosmos USA, Trevi Health Ventures, WRF Capital
LITIGATION RISK
Under risk factors in its prospectus dated Oct. 8, 2009, Omeros states that its former chief financial officer, Richard J. Klein, has filed a lawsuit against the company and its current and former directors. The prospectus states that in December 2008, Klein, “used our Whistleblower Policy procedures to report to the chairman of our audit committee that we had submitted grant reimbursement claims to the National Institutes of Health, or NIH, for work that we had not performed. In accordance with the Whistleblower Policy and its charter, our audit committee, with special outside counsel, commenced an independent investigation of our NIH grant and claims procedures. The investigation concluded that we had not submitted claims to the NIH for work we had not performed. In January 2009, we terminated Mr. Klein’s employment for reasons other than this incident. Mr. Klein alleged that he was wrongfully terminated and claimed it was retaliatory. We subsequently voluntarily reported to the NIH Mr. Klein’s whistleblower report and the audit committee findings; the NIH confirmed to us in writing that it was satisfied with our handling of these grant matters.” Subsequently, on Sept. 21, 2009, Klein “filed a lawsuit against us and our current and former directors in the United States District Court for the Western District of Washington, alleging, among other things, that we violated the Federal False Claims Act, wrongfully discharged his employment in violation of public policy and defamed him.”
STOCK HOLDINGS OF VC FUNDS
(For company directors or owners of 5% or more of the company’s shares.)
Owner_ No. of shares, 10/8/09_ Value, 10/31/09_ Ownership after offering
ARCH Venture Partners_ 738,304_ $3,986,842_ 3.5%
Aravis SA (fka Venture Associates AG)_ 493,102_ $2,662,751_ 2.3 %
VENTURE ROUNDSYear_ No. of Investors_ Round Amount $M_ Valuation $M
01/01/1995_ 1_ $0.88_ $4.33
01/01/1998_ 1_ $4.39_ $11.61
07/31/2000_ 5_ $7.20_ $32.50
01/31/2002_ 1_ $3.86_ $40.29
03/30/2004_ 1_ $7.88_ $48.17
06/07/2004_ 1_ $10.48_ $58.65
07/20/2005_ 1_ $3.26_ $61.91
08/11/2006_ 2_ $5.00_ $66.91
02/12/2007_ 10_ $36.38_ $118.33
FINANCIALS12/31/2006 12/31/2007 12/31/2008
Total Revenue $M*: $0.200_ $1.92_ $1.17
Net Income $M: $(22.78)_ $(23.09)_ $(23.83)
EPS: $(12.08) $(10.65)_ $(8.26)
*Note: Revenue is from grants.
Source: Thomson Reuters and company prospectus filed with SEC