Do You Believe Omeros Corporation's (OMER) New Monoclonal Antibody Has Strong Chances of Approval?

Jacob Fund is a mutual fund company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The latest quarter showed continued market recovery, with major equity indexes reaching new all-time highs. After uncertainties regarding trade policy, finalized tariffs had a limited economic impact, stabilizing the market and refocusing investors on fundamentals. The fund anticipates a new productivity cycle that will enhance profit margins and earnings growth by keeping labor markets subdued. In addition, the fund will remain focused on companies poised for earnings growth and improved valuation multiples in expectation that asset prices could continue to rise in the near-term. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.

In its third-quarter 2025 investor letter, Jacob Fund highlighted stocks such as Omeros Corporation (NASDAQ:OMER). Omeros Corporation (NASDAQ:OMER) is a clinical-stage biopharmaceutical company. The one-month return for Omeros Corporation (NASDAQ:OMER) was 64.39%, and its shares lost 4.66% over the last 52 weeks. On December 05, 2025, Omeros Corporation (NASDAQ:OMER) stock closed at $10.85 per share, with a market capitalization of $769.27 million.

Jacob Fund stated the following regarding Omeros Corporation (NASDAQ:OMER) in its third quarter 2025 investor letter:

"The Jacob Discovery Fund added three new positions in the quarter, Inogen, Omeros Corporation (NASDAQ:OMER) and Bed Bath & Beyond. Omeros is a biotechnology company with a pipeline focused on complement-related diseases and immunology. The company’s latest-stage product is a monoclonal antibody called Narsoplimab, which is facing a key approval decision from the FDA later this year for the treatment of a condition called hematopoietic stem cell transplant-associated thrombotic microangiopathy, a clotting disorder that is quite difficult to treat with current drugs and often deadly for patients. After a roller coaster of a development process, we feel the chances of approval are strong, and the risk/reward ratio is quite favorable. Omeros, which has in the past pursued almost entirely a go-it-alone strategy, is also in late-stage discussions for a possible partnership that if successfully completed would address balance sheet concerns that we believe are also leading to a discount in the market."

Omeros Corporation (NASDAQ:OMER) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Omeros Corporation (NASDAQ:OMER) at the end of the third quarter, which was 13 in the previous quarter. While we acknowledge the potential of Omeros Corporation (NASDAQ:OMER) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Omeros Corporation (NASDAQ:OMER) and shared the list of hot stocks to buy with huge upside potential. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.