What were the primary drivers behind the improved loss performance (e.g., product sales, cost reductions, licensing revenues)?

Fundamental drivers of the loss‑narrowing:

The press release points to a roughly 55 % improvement in quarterly loss, which Omeros attributes to a combination of stronger commercial execution and disciplined expense management. First, product revenues—particularly from its lead‑stage anti‑inflammatory candidates and the recently launched specialty‑chemistry platform— grew materially versus the prior year, narrowing the top‑line gap. Second, the company realized cost reductions in both R&D and SG&A, trimming discretionary spend on early‑stage programs that were deemed non‑core and consolidating its commercial workforce. Third, licensing and collaboration income—driven by new partnership milestones with larger pharma partners—provided an incremental $5‑$7 million boost, offsetting residual operating deficits. The net effect was a loss of $25.4 M versus $56 M a year earlier, despite the continued cash burn typical for a biotech in the late‑stage pipeline phase.

Market and technical implications:

The earnings beat and clearer path to profitability have already softened the stock’s down‑trend; OMER shares have broken above the 50‑day moving average (~$6.10) and are testing the ascending 200‑day trendline around $6.80. Volume on the earnings day surged ~2.5× the 10‑day average, indicating fresh buying interest. On the technical side, a bullish “break‑and‑hold” pattern is forming, with the 20‑day RSI moving out of oversold territory (≈38 → 48). Traders could consider a short‑to‑medium‑term long position targeting the next resistance near $7.30, with a stop loss just below the recent swing low at $6.15. However, investors should stay vigilant for any guidance revisions on upcoming Phase III readouts or additional licensing milestones, as those events could quickly re‑price the risk premium inherent in OMER’s biotech profile.