Omeros Received a Letter from the FDA and Zillow Suspended One of Their Programs
Omeros is a healthcare company located in Seattle, Washington, and they discover and develop therapies for nervous system disorders, making them a biotechnology company. They have a market cap of $354.35 million, making them a very small company.
On Monday, Omeros received a letter from the FDA regarding their drug Narsoplimab, which is meant to be used during eye surgery. The FDA announced that they found some deficiencies with the drug that could affect its labelling requirement, so they are making Omeros run another clinical trial for the therapy. This is a red flag because Omeros is relying on the sale of this drug for their future, so any roadblock could scare investors, and that happened as Omeros closed the day at $5.67, down 26.65%.
Zillow is a real estate company that is also located in the heart of Seattle, Washington, but they work in digital real estate. You’ve likely visited their website to check out houses, and the fact that they are a well-known company justifies their $21.782 billion market cap.
Zillow reported some concerning news on Monday. They have now shut down their iBuying program where they buy and flip new houses to customers for the rest of the year, which is a unique part of their business. The reasoning behind this was the national labor shortage that is ongoing in the United States as there aren’t enough people to renovate homes and work on-the-ground. The rest of the year is just a couple of months, but the labor shortage could continue which would cause more delays for the program. For this reason, Zillow stock fell to $85.46, down 9.37%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.