Omeros Corporation (OMER), a Seattle-based clinical-stage biopharmaceutical company, has experienced increased short interest and financing activity, highlighting its vulnerability to the proposed reforms. With a market capitalization of just $190 million and current price of $3.22, OMER shows a utilization rate of 90%, on-loan quantity of 13.9 million shares and days to cover of 11.36.

Notably, we observed utilization and borrow demand building prior to the company’s recent convertible bond announcement, with activity intensifying significantly following this news. The convertible offering, which provides potential dilution risk, has clearly accelerated short positioning, though our data indicates bearish sentiment was already building beforehand. This earlier bearish sentiment likely stems from ongoing regulatory challenges with the company’s lead drug candidate narsoplimab, which has faced a prolonged FDA approval process. The company’s March 2025 resubmission of its Biologics License Application (BLA) following previous regulatory setbacks has created uncertainty around the drug’s commercial prospects, contributing to the elevated short interest. The high days to cover ratio indicates that favorable policy developments or exemptions could cause a short squeeze, creating volatility.