SAMPLE BIOTECH ALERT: 4/28/06 Shark Biotech Alert - OMRI

OMRI is a small biotech and a  recent IPO that I think has good potential down the road

OMRI's products fall into 2 groups, biosurgical and  immunotherapy. OMRI's biosurgical segment (40% of '05 revenues) focuses on the control of bleeding (hemostasis) during surgery . The hemostasis market is a one billion dollar plus market and OMRI is partnered with one of the leaders, JNJ's ethicon unit for its line of products .

As of now its main product called Crosseal which uses plasma proteins to form clots to prevent/ control blood flow during surgery. Crosseal has several advantages over the compeition.It is readily available for spraying and dripping because it can be prepared from thawed product in approximately one minute in the operating room 2-It contains a suite of naturally occurring proteins in its biological active component, or BAC, which results in a clot that has better adherence to tissue and greater elasticity 3)It avoids the possibility of an adverse reaction associated with bovine (cow) proteins because it does not contain animal-derived components; and can be refrigerated in a liquid form, thereby avoiding waste of unused product, for up to 30 days after thawing.

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SAMPLE BIOTECH ALERT: 4/28/06 Shark Biotech Alert - OMRI Cont.

Currently crosseal is only approved for general surgery in Europe where it is called Quixil . Sales were 7 million in 2005 .
The company is looking to get its second generation crosseal approved in the US by the second half of 2007 . This new version has a big advantage because it will not require a stabilizing agent to slow the natural dissolution of the clot.
The company is also developing a stand alone thrombin product to be used in surgeries where a more gradual clotting agent is needed . This product could be approved in 2007. Thrombin could be a blockbuster as current Throbin therapies use animal byproduct that have unwanted side effects.

OMRI's  immunotherapy division consists of several products.VIG is  designed to treat smallpox vaccine-related complications. A small percentage of those given smallpox vaccines develop complications from the vaccine and VIG is than used. The company has a large contract with the British gov't which is stockpiling VIG for a possible bio terror attack. Although the company has no contract with the US it is rumored that a contract for VIG is possible which would provide a huge boost for OMRI. The company is developing a second generation VIG product which wont need IV and instead be a one time injection per patient making it much easier and cheaper to administer.The company is also developing a vaccine for west Nile virus.

OMRI has been unfairly punished due to weakness in the biotech sector and the rotten results of recent biotech IPOs.OMRI also doesn't have a sexy blockbuster drug in the pipeline to get investors excited. But it does have some solid smaller products which should start to show very strong growth once thrombin,second generation crosseal and  second generation VIG get approved.Most importantly OMRI has a great partner in JNJ,the de facto leader in selling to the surgical market place. I would not be surprised if they buy OMRI sometime in the near future.  I am starting a position in OMRI here at the 10 dollar level and intend to be patient with the stock.

Long OMRI

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SAMPLE BIOTECH ALERT: 8/9/06 Shark Biotech Alert - OMRI

OMRI a stock which I have mentioned in the past reported strong earnings last night and raised guidance for the year. The company which has a combination of biosurgical products sold by JNJ, and also immunotherapy products primarily a small pox vaccine is firing on all cylinders.
In addition OMRI's pipeline which includes a potential blockbuster drug to stop surgical bleeding and a vaccine to treat west Nile virus looks very promising.
I still have a small position from when I mentioned the stock in April and will look to add on strength as I think the stock is cheap and the story has the potential to get even better.
Long OMRI
  8/9/06
As I mentioned this morning OMRI had a very strong earnings report. The stock seems cheap after the company provided guidance of over a dollar per share for 2006 and I think the company's pipeline has big potential.As such I am adding OMRI to the biotech portfolio
250 at 13
11/29/06

OMRI has also gone vertical since producing blow out 3rd quarter results. As the stock has gotten a bit too hot for my taste I'm going to do a tiny sale here . I still think OMRI has big potential as i'ts new products in the pipeline come to market.

Selling 50 OMRI at 27.69

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SAMPLE BIOTECH ALERT: 10/16/06 Shark Biotech Alert - OMRI

This morning, OMRI reported successful Phase 3 results for thrombin a drug to heal surgical wounds. The trial achieved its primary endpoint of achieving hemostasis (stoppage of bleeding) within 10 minutes, 97.4% of the time. In addition it achieved the secondary endpoints of hemostasis within 3 and 6 minutes respectively.

The company plans on filing its new drug application by Nov 15th which could mean that the drug will be on the market by the end of 2007. Thrombin could be a big drug for OMRI and its partner JNJ, which would lead to huge growth starting in 2008.

The stock is trading at new highs and these results have been anticipated a bit by Wall Street so don't be surprised if some profit taking kicks in. But looking past the very near term, OMRI looks like it can continue to be a big winner for the portfolio.

Long OMRI

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SAMPLE BIOTECH ALERT: 11/7/06 Shark Biotech Alert - OMRI

OMRI reported another blow out quarter this morning. The company reported earnings of .53 a share which was 20 cents higher than the .33 estimate. In addition the company raised its EPS guidance to be in the range of $1.40 to $1.45 & product sales revenues to be in the range of $54.0 million to $55.0 million.( up from previous guidance of 1.15-1.20 50-51.5)
With tremendous earnings momentum plus the launch of new products in the second half of next year, I continue to believe that OMRI is extremely undervalued. I added a few shares in the pre market and added 50 shares to the biotech port.

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