THE AYES HAVE IT FOR THIS SMALL OCULAR CONCERN This week’s free report is around an attractive investment opportunity in a small biotech company with one approved product and multiple “shots on goal”. If the company continues to execute, the shares could have substantial upside over the next 12-24 months.

1. OMEROS
(NASDAQ: OMER)
THE AYES HAVE IT FOR THIS
SMALL OCULAR CONCERN
This week’s free report is around an attractive investment opportunity in
a small biotech company with one approved product and multiple “shots
on goal”. If the company continues to execute, the shares could have
substantial upside over the next 12-24 months.
FREE REPORT
www.bretjenseninvests.com

2. COMPANY OVERVIEW
Omeros Corporation (OMER), is a Seattle
based biopharmaceutical company focused on
developing and commercializing small-molecule
and protein therapeutics, and orphan
indications targeting inflammation,
coagulopathies, and disorders of the central
nervous system.
Omeros is known for developing products which
are uniquely administered throughout the
duration of surgery directly to the surgical site to
preemptively provide clinical benefits (e.g.
reduce inflammation and pain) both during and
after the procedure.
Omeros has a market capitalization of
approximately $400 million and is currently
selling at around $11 per share.
#2

3. PIPELINE
Omeros is heavily focused on
driving higher sales and
expanding into new markets
this year for one FDA
approved product Omidria.
The Company also has a
diverse pipeline with several
shots on goal in various
phases including one
candidate in phase III trials,
four in phase II trials, and
several pre-clinical candidates
with multiple patents filed,
large potential markets, and
the likelihood of generating
additional spinoff products.
Omeros has retained rights to its products with the exception of OMS103 which has been licensed to another
company and is generating revenue. Here is a quick rundown of the product and pipeline portfolio.
OMIDRIA is used during cataract or intraocular lens replacement surgery to improve patient outcomes.
#3

4. Phase / Status / Expected Launch: OMIDRIA was approved by FDA and started generating revenues in the
U.S. market in April 2015. There are firm plans to launch the product in the Middle East in 2H 2016 and seeking a
distribution partner to launch in EU in 2H 2016.
Expected Market: OMIDRIA’s Q1 revenues for this product were $7.2 million. More than 1.5 million cataract
surgeries and about 3.8 million intraocular lens replacement procedures are projected to be performed in the U.S.
annually. About 22 million annual intraocular lens replacement procedures are projected worldwide. Omeros
expects the number of these procedures to grow annually by 3-4%.
Omeros signed an agreement with ITROM to begin selling Omidria in the Middle East in 2016, which has 500,000
cataract surgeries a year.
EU expansion will be a larger market. The company plans to sign one or two partnerships but has provided no
specific timeline. It could impact stock value positively in the near future if the EU partner is large and established
and/or milestone payments are significant.
Other Considerations:
⦿ Omeros has retained full market rights.
⦿ Sales are increasing due 11 new sales agents hired and Precision Lens making sales calls in square states.
⦿ Omeros is pursuing a Patent infringement lawsuit against competitor PAR Pharmaceutical for this product.
Key Differentiator(s): What makes OMIDRIA special is that it is a unique proprietary combination of a pupil-
dilating agent and a non-steroidal anti-inflammatory agent that is added to irrigation solution and administered
during surgery, before inflammation and other problems occur. OMIDRIA is the only FDA-approved product for
intraocular use that prevents intraoperative miosis and reduces postoperative pain.
PIPELINE
#4

5. PDE10 (OMS824) OMS201 PPARy (OMS405)
MASP – 2 (Mannan-binding lectin-associated serine protease-2, aka OMS721), is a novel pro-inflammatory
protein which targets Lectin Pathway Immune Disorders such as atypical hemolytic uremic syndrome,
thrombotic microangiopathies (TMAs), IgA nephropathy, and other renal diseases.
Key Differentiator(s): MASP - 2 is potentially safer and more effective than Alexion’s (ALXN) Soliris. MASP -
2 can be administered subcutaneously whereas Soliris is delivered intravenously. Omeros believes this
product will develop first-in-class treatments for a wide range of acute and chronic inflammatory disease states
and autoimmune disorders.
Phase / Status / Expected Launch: MASP - 2 is currently in Phase III clinical trials for the treatment of
atypical hemolytic uremic syndrome; and is in Phase II clinical trials for the treatment of thrombotic
microangiopathies (TMAs), IgA nephropathy, and other renal diseases.
If the Phase II trial is positive, Omeron intends to request accelerated approval / breakthrough therapy status
from the FDA to start a phase III program that meets accelerated approval requirements. MASP - 2 has
received Orphan Drug Designation from the FDA for prevention of complement-mediated TMAs and Fast
Track Designation from the FDA for the treatment atypical hemolytic uremic syndrome (aHUS).
Expected Market: atypical hemolytic-uremic syndrome impacts about 64,000, stroke impacts 700,000, and
renal disease more than 20 million Americans per year. MASP – 2 is likely to compete for the existing $2.6
billion Soliris market.
MASP — 2
#5
GPRC

6. OMS201 is another therapy used during surgery to improve
patient outcomes. This product candidate is used during
urological procedures including ureteroscopy for removal of
ureteral or renal stones.
OMS201 is a proprietary combination of ketoprofen, an anti-
inflammatory API, and nifedipine, a smooth muscle relaxant
API.
Key Differentiator(s): Product is administered during
surgery, before inflammation and other problems occur.
Leverages components which are generic, FDA-approved
drugs that have been marketed in the U.S. for more than 20
years, have well-known safety and pharmacologic profiles,
and have been individually prescribed to manage the
symptoms of ureteral and renal stones.
Phase / Status / Expected Launch: In Phase I/II clinical
trials.
Expected Market: In 2013, 49 million cases of kidney
stones occurred globally.
OMS201
#6

7. PPARy (OMS405) is designed for opioid and nicotine addiction.
Phase / Status / Expected Launch: Is in Phase III clinical trials.
Other Considerations:
⦿ Phase II trial results do not look promising
⦿ No cost risk – Phase II trial is being run by a separate organization (NY State Psychiatric Institute).
Additionally, Omeros is pursuing the following PRE-CLINICAL THERAPIES which do not yet have plans to move
into clinical trials but may prove profitable over a longer time frame;
⦿ GPR17 for Demyelinating disorders
⦿ GPR101 for appetite and eating disorders
⦿ GPR151 for treating neuropathic pain and cognition
⦿ GPR161 for triple-negative breast cancer treatment
⦿ GPR174 for dysfunction of regulatory T-cell modulation
⦿ GPR183 for the treatment of osteoporosis and EBV-related diseases
PPARy (OMS405)
PRE-CLINICAL THERAPIES
are all expected to advance
to clinical trials in 2017

8. GPCR (G Protein-Coupled Receptor) Platform, called the “Cellular Redistribution Assay (CRA) is being touted
by Omeros as a high-throughput drug discovery platform for orphan G Protein-Coupled Receptors (GPCRs) in
order to target unmet needs; particularly related to metabolic and cardiovascular indications, oncology, and CNS
disorders.
Key Differentiator(s): Omeros believes that there is no other existing high-throughput technology able to
“unlock” orphan GPCRs and that their efforts could lead to the development of oral medications for many
conditions.
Omeros has announced that it has identified and confirmed sets of compounds that interact selectively with the
orphan receptors identified in the table below.
Patent Position - As of February 28, 2015, Omeros owns five issued patents, 16 pending patent applications in
the U.S., as well as 43 issued patents and eight pending patent applications in foreign markets related to
previously unknown links between specific molecular targets in the brain and a series of CNS disorders, their
CRA and other research tools used in the GPCR program and to orphan GPCRs and other GPCRs for which we
have identified functionally interacting compounds using our CRA.
Phase / Status / Expected Launch: In Pre-clinical efforts, Omeros is actively attempting to optimize compounds
against several orphan GPCRs including: GPR17, linked to myelin formation; GPR101, linked to appetite and
eating disorders; GPR151, linked to neuropathic pain and cognition; GPR161, which is associated with triple
negative breast cancer; GPR183, linked to osteoporosis and to Epstein-Barr virus infections and related
diseases; and GPR174, which appears to be involved in the modulation of regulatory T cells important in
autoimmune disease, such as multiple sclerosis, and in cancer and organ transplantation. No specific 2017
clinical trials are currently expected. This platform could potentially be fertile ground for future clinical trials.
GPCR

9. OMEROS (NASDAQ: OMER)
GPCR Metabolic & Cardiovascular Indications
GPCR Oncology Indications
GPR12 Obesity, Cognitive Impairments
GPR19 Melanoma, Lung Cancer
GPR21 Obesity, Diabetes
GPR20 Gastro-Intestinal Stromal Tumors, Acute Myeloid Leukemia
GPR22 Cardiovascular Diseases, Anxiety
GPR65 Renal Cell Carcinoma, Ovarian Cancer, Inflammation
GPR25 Arterial Stiffness
GPR68 Ovarian Cancer, Prostate Cancer, Osteoporosis
GPR37L1 Hypertension
GPR80 Hepatocellular Carcinoma
GPR39 Diabetes
GPR87 Squamous Cell Carcinoma
GPR50 Metabolic Disorders
GPR150 Ovarian Cancer
GPR61 Eating Disorders
GPR161 Breast Cancer, Congenital Cataracts & Birth Defects
GPR82 Appetite, Body Weight
GPR174 Melanoma, Grave’s Disease
GPR101 Eating Disorders
LGR4 Cancer Stem Cells, Bone Diseases
GPR132 Atherosclerosis
LGR5 Cancer Stem Cells, Esophageal Adenocarcinoma
GPR146 Dyslipidemia, Diabetes
P2Y8 Leukemias, Lymphomas
GPR171 Eating Disorders
GPR176 Atherosclerosis
SREB1/GPR27 Diabetes, Schizophrenia
GPCR CNS Indications
GPCR Miscellaneous Indications
GPR17 Myelin Disorders, Multiple Sclerosis
GPR15 HIV Enteropathy, Rheumatoid Arthritis
GPR31 Anxiety Disorders
GPR32 Acute Inflammatory Responses
GPR37 Parkinson’s Disease
GPR83 Autoimmune Diseases, PTSD
GPR52 Schizophrenia
GPR183 Humoral Immunity
GPR63 Autism
CCRL2 Rheumatoid Arthritis
GPR78 Bipolar Disorder, Schizophrenia
LGR6 Hair Follicle Stem Cells, Wound Repair
GPR139 Motor Disorders GPCRs with Unknown Indications
GPR151 Cognition, Mood Disorders, Pain
GPR45 GPR182
GPR135 MRGF
GPR141 OPN5
GPR162
GPR153 Schizophrenia
MAS1 Cognitive Impairments
MRGE Pain
OPN4 Circadian Rhythm, Sleep Disorders
SREB2/GPR85 Schizophrenia, Obesity
SREB3/GPR173 Schizophrenia, Obesity

10. Finally, Omeros’ proprietary Antibody Platform is used for the discovery of novel, high-affinity monoclonal
antibodies utilizing a chicken B-cell lymphoma cell line and is targeting therapies for Metabolic, CV, Oncologic,
Musculoskeletal & other disorders.
Key Differentiator(s): The Company believes their platform offers several clinical advantages over other
antibody platforms which will enable them to deliver quicker results and product novel antibodies against difficult
targets, such as highly homologous proteins, enzymes, and receptors with short extracellular domains. Patent
Position - As of March 8, 2016, we owned and/or held worldwide exclusive license rights from the UW to four
issued patents and four pending patent applications in the U.S., and three issued patents and 14 pending patent
applications in foreign markets related to this platform.
Phase / Status / Expected Launch: PRE-CLINICAL but has generated antibodies to several clinically significant
targets and our platform continues to add to our pipeline
Balance Sheet:
As of the May 10, 2016 quarterly report, OMIDRIA sales had increased by 65% in Q2 over Q1 and are projected
to continue expanding due to increased sales staff as well as goals to expand into the Middle East and EU
markets in the second half of 2016. Current net sales of OMIDRIA are around $12 million per quarter and
growing while quarterly costs were almost $27 million (including 4.7 million of non-cash expenses).
As of March 31, 2016, the company had cash on hand of $13.2 million and in mid-May, Omeros received a cash
infusion of $20 Million from Oxford Finance through acceleration of an existing debt facility.
Based primarily on increasing OMIDRIA sales, the company still expects to be cash flow positive later this year,
and fully funding its pipeline. Also, should a hoped for new distribution partnership for OMIDRIA in the EU fall into
place, it may yield additional cash in the form of upfront payment.
BALANCE SHEET

11. OUTLOOK AND RECOMMENDATION
Outlook: Three analysts in the last 3 months averaged a price target of $39.00 with a high
estimate of $75 and a low estimate of $21. WBB Securities reiterated their buy rating and
$75.00 price target in a research report sent to investors on Tuesday June 14, 2016.
Cantor Fitzgerald started coverage on Omeros in a research report on Thursday, June 2nd.
They set a buy rating and a $21.00 target price on the stock and indicated “cash flows from
its recently launched eye drug Omidria could fuel its pipeline for years to come.”
There is reasonable consensus opinion that Omeros will hit its sales targets sufficiently to
have sufficient funding to pursue its pipeline as planned. Though it’s too soon to tell for some
products, the Company has several promising product paths teed up for the long run.
Given rapid sales increases for OMIDRIA, a large and diverse pipeline as well as possible
upcoming catalysts such as finding/signing a distribution partner in Europe; one has to like
the risk/reward profile of Omeros at its current trading levels.
Recommendation:
Buy OMER up to $14 a share
#11

12. WWW.BRETJENSENINVESTS.COM