0001437749-23-031250 | 10-Q | XBRL Viewer

Schedule Of Contract Royalty Asset [Table Text Block]

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
Short-term contract royalty asset	$	29,228	$	28,797
Long-term contract royalty asset		119,502		123,425
Total OMIDRIA contract royalty asset	$	148,730	$	152,222

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
OMIDRIA royalty	$	6,658	$	12,966
Sublease and other		220		255
OMIDRIA milestone		—		200,000
Total receivables	$	6,878	$	213,221

Property, Plant and Equipment [Table Text Block]

	*September 30,*			*December 31,*
	*2023*			*2022*
	(In thousands)
Equipment under finance lease obligations	$	6,608		$	6,204
Laboratory equipment		3,407			3,135
Computer equipment		1,113			1,076
Office equipment and furniture		625			625
Total cost		11,753			11,040
Less accumulated depreciation and amortization		(10,036	)		(9,548	)
Total property and equipment, net	$	1,717		$	1,492

Schedule of Accrued Liabilities [Table Text Block]

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
Employee compensation	$	12,556	$	6,665
Clinical trials		9,351		5,536
Contract research and development		4,158		3,209
Interest payable		3,703		5,172
Consulting and professional fees		3,005		4,425
Income taxes payable		1,228		4,871
Other accrued expenses		858		673
Total accrued expenses	$	34,859	$	30,551

Note 10 - Commitments and Contingencies (Details Textual) $ in Millions	Sep. 30, 2023 USD ($)
Long-Term Purchase Commitment, Termination Fee	$ 27.4
Development Milestones [Member] \| License [Member]
Accrued Liabilities	$ 5.0

Note 8 - OMIDRIA Royalty Obligation

9 Months Ended

Sep. 30, 2023

Royalty Obligation [Text Block]

Note 8—OMIDRIA Royalty Obligation

On September 30, 2022, we sold to DRI an interest in our future OMIDRIA royalty receipts and received $125.0 million in cash consideration which was recorded as an OMIDRIA royalty obligation on our condensed consolidated balance sheet. DRI is entitled to receive royalties on OMIDRIA net sales through December 31, 2030, subject to annual caps. DRI receives their prorated monthly cap amount before we receive any royalty proceeds. DRI is not entitled to carry-forward nor recoup any shortfall if the royalties paid by Rayner for an annual period are less than the cap amount applicable to each discrete calendar year. Additionally, DRI has no recourse to or security interest in our assets other than our OMIDRIA royalty receipts, and we retain all royalty receipts in excess of the respective cap in any given calendar year. At September 30, 2023, the maximum remaining amount that DRI is entitled to receive through the term of the agreement ( December 31, 2030) is $177.0 million, which, if fully paid, would be at an implied effective interest rate of 9.4% over the entire term of the agreement.

We consider our OMIDRIA royalty obligation to be a Level 3 obligation in the fair value hierarchy as its valuation relies on factors that are not easily observable in the market. As of September 30, 2023, the approximate fair value of our obligation was $116.2 million.

For the three months and nine months ended September 30, 2023, we incurred cash interest expense of $3.0 million and $8.9 million, respectively.

As of September 30, 2023, the maximum scheduled principal and interest payments (based on an implied effective interest rate of 9.4%) are as follows:

					*Total*
	*Principal*		*Interest*		*Annual Cap*
	(In thousands)
2023	$	298	$	2,952	$	3,250
2024		8,576		11,424		20,000
2025		14,641		10,359		25,000
2026		16,081		8,919		25,000
2027		17,664		7,336		25,000
Thereafter		68,164		10,586		78,750
Total scheduled payments	$	125,424	$	51,576	$	177,000

Note 5 - Certain Balance Sheet Accounts - Schedule of Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
OMIDRIA royalty	$ 6,658	$ 12,966
Sublease and other	220	255
OMIDRIA milestone	0	200,000
Total receivables	$ 6,878	$ 213,221

Note 12 - Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023
Balance, options (in shares)	13,872,973
Balance, weighted average exercise price (in dollars per share)	$ 11.02
Granted, options (in shares)	2,908,200
Granted, weighted average exercise price (in dollars per share)	$ 3.13
Exercised, options (in shares)	(36,726)
Exercised, weighted average exercise price (in dollars per share)	$ 4.1
Forfeited, options (in shares)	(1,439,517)
Forfeited, weighted average exercise price (in dollars per share)	$ 10.12
Balance, options (in shares)	15,304,930
Balance, weighted average exercise price (in dollars per share)	$ 9.62
Balance, Remaining Contractual Life (Year)	6 years 3 months 18 days
Balance, Intrinsic Value	$ 80
Vested and expected to vest, options (in shares)	14,760,623
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 9.78
Vested and expected to vest, Remaining Contractual Life (Year)	6 years 2 months 12 days
Vested and expected to vest, Intrinsic Value	$ 77
Exercisable, options (in shares)	10,169,314
Exercisable, weighted average exercise price (in dollars per share)	$ 11.75
Exercisable, Remaining Contractual Life (Year)	4 years 9 months 18 days
Exercisable, Intrinsic Value	$ 44

Note 7 - Unsecured Convertible Senior Notes

9 Months Ended

Sep. 30, 2023

Long-Term Debt [Text Block]

Note 7—Unsecured Convertible Senior Notes

We carry $95.0 million in aggregate principal on our 6.25% Convertible Senior Notes (the “2023 Notes”) and $225.0 million in aggregate principal on our 5.25% Convertible Senior Notes (the “2026 Notes”) as shown below:

	*Balance as of September 30, 2023*
	*2023 Notes*			*2026 Notes*			*Total*
	(In thousands)
Principal amount	$	95,000		$	225,030		$	320,030
Unamortized debt issuance costs		(91	)		(3,202	)		(3,293	)
Total unsecured convertible senior notes, net	$	94,909		$	221,828		$	316,737

Fair value of outstanding unsecured convertible senior notes ⁽¹⁾	$	94,822		$	136,424

	Balance as of December 31, 2022
	2023 Notes			2026 Notes			Total
	(In thousands)
Principal amount	$	95,000		$	225,030		$	320,030
Unamortized discount		(619	)		(4,124	)		(4,743	)
Total unsecured convertible senior notes, net	$	94,381		$	220,906		$	315,287

Fair value of outstanding unsecured convertible senior notes ⁽¹⁾	$	92,031		$	118,141

(1)

The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes.

2023 Unsecured Convertible Senior Notes

Our 2023 Notes are unsecured and accrue interest at an annual rate of 6.25% per annum, payable semi-annually in arrears on May 15 and November 15 of each year. We expect to pay the $95.0 million principal payment upon maturity on November 15, 2023 from our existing cash and investments on hand.

The unamortized debt issuance costs of $0.1 million as of September 30, 2023 will be amortized to interest expense at an effective interest rate of 7.0% over the remaining term.

Subject to the satisfaction of certain conditions, the 2023 Notes are convertible into cash, shares of our common stock or a combination thereof, as we elect at our sole discretion. The initial conversion rate is 52.0183 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $19.22 per share of common stock), which equals approximately 4.9 million shares of common stock issuable upon conversion, subject to adjustment in certain circumstances.

To reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2023 Notes, we entered into a capped call transaction (the “2023 Capped Call”), which covers the number of shares of our common stock underlying the 2023 Notes when our common stock share price is trading between the initial conversion price of $19.22 and $28.84. However, should the market price of our common stock exceed the $28.84 cap, then the conversion of the 2023 notes could have a dilutive impact or may require a cash expenditure to the extent the market price exceeds the cap price. As of September 30, 2023, approximately 4.9 million shares remained outstanding on the 2023 Capped Call and expire upon maturity of our 2023 Notes on November 15, 2023.

The following table sets forth total interest expense recognized in connection with the 2023 Notes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Contractual interest expense	$	1,484	$	1,484	$	4,453	$	4,453
Amortization of debt issuance costs		179		167		528		492
Total	$	1,663	$	1,651	$	4,981	$	4,945

2026 Unsecured Convertible Senior Notes

Our 2026 Notes are unsecured and accrue interest at an annual rate of 5.25% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes mature on February 15, 2026, unless earlier purchased, redeemed or converted in accordance with their terms.

The unamortized debt issuance costs of $3.2 million as of September 30, 2023 will be amortized to interest expense at an effective interest rate of 5.9% over the remaining term.

Subject to the satisfaction of certain conditions, the 2026 Notes are convertible into cash, shares of our common stock or a combination thereof, as we elect at our sole discretion. The initial conversion rate is 54.0906 shares of our common stock per $1,000 of note principal (equivalent to an initial conversion price of approximately $18.4875 per share of common stock), which equals approximately 12.2 million shares of common stock issuable upon conversion, subject to adjustment in certain circumstances.

To reduce the dilutive impact or potential cash expenditure associated with the conversion of the 2026 Notes, we entered into capped call transactions (the “2026 Capped Calls”), which cover the number of shares of our common stock underlying the 2026 Notes when our common stock share price is trading between the initial conversion price of $18.49 and $26.10. However, should the market price of our common stock exceed the $26.10 cap, then the conversion of the 2026 Notes would have a dilutive impact or may require a cash expenditure to the extent the market price exceeds the cap price. As of September 30, 2023, approximately 12.2 million shares remained outstanding on the 2026 Capped Call.

The following table sets forth interest expense recognized related to the 2026 Notes:

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
	(In thousands)
Contractual interest expense	$	2,954	$	2,954	$	8,861	$	8,861
Amortization of debt issuance costs		312		294		922		869
Total	$	3,266	$	3,248	$	9,783	$	9,730

Future Minimum Principal Payments

Future minimum principal payments for the 2023 Notes and 2026 Notes as of September 30, 2023 are as follows (in thousands):

2023	$	95,000
2024		—
2025		—
2026		225,030
Total future minimum principal payments under the 2023 Notes and 2026 Notes	$	320,030

Note 1 - Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1—Organization and Basis of Presentation

General

Omeros Corporation (“Omeros,” the “Company” or “we”) is a clinical-stage biopharmaceutical company committed to discovering, developing and commercializing small-molecule and protein therapeutics for large-market as well as orphan indications targeting immunologic disorders, including complement-mediated diseases, cancers and addictive and compulsive disorders. We marketed our first drug product, OMIDRIA® (phenylephrine and ketorolac intraocular solution) 1% / 0.3% for use during cataract surgery or intraocular lens replacement in the United States (the “U.S.”) until we sold OMIDRIA and related business assets on December 23, 2021 (see “Sale of OMIDRIA Assets” below for additional information).

Our pipeline of clinical-stage development programs includes: narsoplimab, our antibody targeting mannan-binding lectin-associated serine protease 2 (“MASP-2”), the effector enzyme of the lectin pathway of complement; OMS1029, our long-acting antibody targeting MASP-2; OMS906, our antibody targeting mannan-binding lectin-associated serine protease-3 (“MASP-3”), the key activator of the alternative pathway of complement; and OMS527, our phophodiesterase 7 (“PDE7”) inhibitor.

In October 2023, we announced the results of a pre-specified interim analysis of our Phase 3 ARTEMIS-IGAN trial evaluating narsoplimab for the treatment of immunoglobulin A (“IgA”) nephropathy. Topline results showed that narsoplimab did not reach statistically significant improvement over placebo on the primary endpoint of reduction in proteinuria. Based on this result, we have discontinued the ARTEMIS-IGAN clinical trial. Clinical development of narsoplimab is currently focused primarily on hematopoietic stem cell transplant-associated thrombotic microangiopathy (“HSCT-TMA”). Our Biologics License Application (“BLA”) for narsoplimab in HSCT-TMA is anticipated to be resubmitted with additional information to support potential approval of narsoplimab in this indication. Phase 1 and Phase 2 clinical programs are underway in our other clinical-stage assets.

Sale of OMIDRIA Assets

On December 23, 2021, we sold our commercial product OMIDRIA and certain related assets including inventory and prepaid expenses to Rayner Surgical Inc. (“Rayner”). Rayner paid us $126.0 million in cash at closing, and we retained all outstanding accounts receivable, accounts payable and accrued expenses as of the closing date.

Under the Asset Purchase Agreement with Rayner (the “Asset Purchase Agreement”), we were entitled to receive a milestone payment of $200.0 million (the “Milestone Payment”) within 30 days following an event (the “Milestone Event”) that establishes separate payment for OMIDRIA for a continuous period of at least four years when furnished in the ambulatory surgery center (“ASC”) setting. In December 2022, the Milestone Event occurred and we recorded a $200.0 million milestone receivable. Upon the achievement of the Milestone Event, our royalties on U.S. net sales were reduced from 50% to 30% with royalties on net sales outside the U.S. remaining unchanged at 15%. We received the Milestone Payment together with accrued interest in February 2023.

As a result of the divestiture, the results of OMIDRIA operations (e.g., revenues and operating costs) are included in discontinued operations in our condensed consolidated statements of operations and comprehensive loss and excluded from continuing operations for all periods presented (See “Note 3 – Discontinued Operations”).

Basis of Presentation

Our condensed consolidated financial statements include the financial position and results of operations of Omeros and our wholly owned subsidiaries. All inter-company transactions have been eliminated. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Liquidity and Capital Resources

As of September 30, 2023, we had cash, cash equivalents and short-term investments of $310.3 million. Our loss for the quarter ended September 30, 2023 was $37.8 million and our cash provided by operations for the nine months ended September 30, 2023 was $109.6 million, which included collection of the $200.0 million Milestone Payment in the first quarter of 2023. We have a $95.0 million principal payment due at maturity on our 2023 unsecured convertible senior notes on November 15, 2023, which we expect to pay on the maturity date from our existing cash and investments on hand.

Historically, we have incurred net losses from continuing operations and negative operating cash flows. We have not yet established an ongoing source of revenue sufficient to cover our operating costs; therefore, we would need to continue to raise additional capital to accomplish our business plan and to retire our outstanding convertible senior notes due in 2026. We plan to continue to fund our operations for at least the next twelve months with our existing cash, investments and royalties from Rayner. We have a sales agreement in place for an “at the market” equity offering facility through which we may offer and sell shares of our common stock equaling an aggregate amount up to $150.0 million. Should it be determined to be strategically advantageous, we could also pursue debt financings as well as public and private offerings of our equity securities, similar to those we have previously completed, or other strategic transactions, which may include licensing a portion of our existing technologies. Should it be necessary to manage our operating expenses, we could also reduce our projected cash requirements by delaying clinical trials, reducing selected research and development efforts, or implementing other restructuring activities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to such estimates include OMIDRIA contract royalty asset valuation, stock-based compensation expense, and accruals for clinical trials and manufacturing of drug product. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances; however, actual results could differ from these estimates.

Note 11 - Shareholders' Equity (Deficit)

9 Months Ended

Sep. 30, 2023

Equity [Text Block]

Note 11—Shareholders’ Equity (Deficit)

Common Stock and Warrants

On March 1, 2021, we entered into a sales agreement to sell shares of our common stock having an aggregate offering price of up to $150.0 million, from time to time, through an “at the market” equity offering program. As of September 30, 2023, we have not sold any shares under this program.

On April 12, 2023, warrants to purchase 200,000 shares of our common stock with an exercise price of $23.00 per share expired without being exercised. We have no other warrants outstanding.

On November 9, 2023, the Board of Directors approved an indefinite term share repurchase program under which we may repurchase from time to time up to $50.0 million of our common stock in the open market or through privately negotiated transactions.

Amendment of 2017 Omnibus Incentive Compensation Plan

At our June 23, 2023 annual meeting, our shareholders approved a 5,000,000 share increase in the number shares of common stock available for grant under the 2017 Omnibus Incentive Compensation Plan, as amended and restated. The total number of shares of common stock available for grant as of September 30, 2023 was 8,613,348.

The entire disclosure for equity.

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Note 3 - Discontinued Operations - Net Income From Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale [Member] - Omidria Assets Disposal [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest earned on OMIDRIA contract royalty asset	$ 3,730	$ 4,356	$ 11,484	$ 13,739
Remeasurement adjustments	10,100	32,917	14,924	40,631
Other income, net	76	63	480	295
Net income from discontinued operations, net of tax	$ 13,906	$ 37,336	$ 26,888	$ 54,665

Note 5 - Certain Balance Sheet Accounts

9 Months Ended

Sep. 30, 2023

Supplemental Balance Sheet Disclosures [Text Block]

Note 5—Certain Balance Sheet Accounts

OMIDRIA Contract Royalty Asset

The OMIDRIA contract royalty asset consists of the following:

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
Short-term contract royalty asset	$	29,228	$	28,797
Long-term contract royalty asset		119,502		123,425
Total OMIDRIA contract royalty asset	$	148,730	$	152,222

Receivables

Receivables consist of the following:

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
OMIDRIA royalty	$	6,658	$	12,966
Sublease and other		220		255
OMIDRIA milestone		—		200,000
Total receivables	$	6,878	$	213,221

Property and Equipment, Net

Property and equipment, net consists of the following:

	*September 30,*			*December 31,*
	*2023*			*2022*
	(In thousands)
Equipment under finance lease obligations	$	6,608		$	6,204
Laboratory equipment		3,407			3,135
Computer equipment		1,113			1,076
Office equipment and furniture		625			625
Total cost		11,753			11,040
Less accumulated depreciation and amortization		(10,036	)		(9,548	)
Total property and equipment, net	$	1,717		$	1,492

For the three months ended September 30, 2023 and 2022, depreciation and amortization expense was $0.2 million and $0.3 million, respectively. For the nine months ended September 30, 2023 and 2022, depreciation and amortization expense was $0.7 million and $0.8 million, respectively.

Accrued Expenses

Accrued expenses consists of the following:

	*September 30,*		*December 31,*
	*2023*		*2022*
	(In thousands)
Employee compensation	$	12,556	$	6,665
Clinical trials		9,351		5,536
Contract research and development		4,158		3,209
Interest payable		3,703		5,172
Consulting and professional fees		3,005		4,425
Income taxes payable		1,228		4,871
Other accrued expenses		858		673
Total accrued expenses	$	34,859	$	30,551

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net loss	$ (108,745)	$ (81,316)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	8,959	10,808
Non-cash interest expense on unsecured convertible debt	1,450	1,361
Depreciation and amortization	715	789
Non-cash interest earned on OMIDRIA contract royalty asset	(11,484)	(13,739)
Remeasurement on OMIDRIA contract royalty asset	(14,924)	(40,631)
Accretion on U.S. government treasury bills, net	(7,280)	0
Early termination of operating lease	0	(454)
Changes in operating assets and liabilities:
Receivables	206,343	24,301
Prepaid expenses and other	876	1,769
OMIDRIA contract royalty asset	29,900	47,555
Accounts payable and accrued expense	3,741	(11,544)
Net cash provided by (used in) operating activities	109,551	(61,101)
Investing activities:
Purchases of investments and other	(839,595)	(103,573)
Proceeds from the sale and maturities of investments	751,114	84,600
Purchases of property and equipment	(308)	(100)
Net cash used in investing activities	(88,789)	(19,073)
Financing activities:
Proceeds from sale of future royalties	0	125,000
Principal payments on OMIDRIA royalty obligation	(854)	0
Principal payments on finance lease obligations	(427)	(515)
Proceeds upon exercise of stock options and warrants	150	414
Net cash provided by (used in) financing activities	(1,131)	124,899
Net increase in cash and cash equivalents	19,631	44,725
Cash and cash equivalents at beginning of period	11,009	100,808
Cash and cash equivalents at end of period	30,640	145,533
Supplemental cash flow information
Cash paid for interest	23,801	13,437
Property acquired under finance lease	$ 632	$ 806

Note 7 - Unsecured Convertible Senior Notes (Tables)

9 Months Ended

Sep. 30, 2023

Convertible Debt [Table Text Block]

	*Balance as of September 30, 2023*
	*2023 Notes*			*2026 Notes*			*Total*
	(In thousands)
Principal amount	$	95,000		$	225,030		$	320,030
Unamortized debt issuance costs		(91	)		(3,202	)		(3,293	)
Total unsecured convertible senior notes, net	$	94,909		$	221,828		$	316,737

Fair value of outstanding unsecured convertible senior notes ⁽¹⁾	$	94,822		$	136,424

	Balance as of December 31, 2022
	2023 Notes			2026 Notes			Total
	(In thousands)
Principal amount	$	95,000		$	225,030		$	320,030
Unamortized discount		(619	)		(4,124	)		(4,743	)
Total unsecured convertible senior notes, net	$	94,381		$	220,906		$	315,287

Fair value of outstanding unsecured convertible senior notes ⁽¹⁾	$	92,031		$	118,141

Schedule Of Debt Instrument, Interest Expense Recognized [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Contractual interest expense	$	1,484	$	1,484	$	4,453	$	4,453
Amortization of debt issuance costs		179		167		528		492
Total	$	1,663	$	1,651	$	4,981	$	4,945

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
	(In thousands)
Contractual interest expense	$	2,954	$	2,954	$	8,861	$	8,861
Amortization of debt issuance costs		312		294		922		869
Total	$	3,266	$	3,248	$	9,783	$	9,730

Schedule of Maturities of Long-Term Debt [Table Text Block]

2023	$	95,000
2024		—
2025		—
2026		225,030
Total future minimum principal payments under the 2023 Notes and 2026 Notes	$	320,030

Note 7 - Unsecured Convertible Senior Notes - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
2023	$ 95,000
2024	0
2025	0
2026	225,030
Total future minimum principal payments under the 2023 Notes and 2026 Notes	$ 320,030	$ 320,030

Note 2 - Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies [Text Block]

Note 2—Significant Accounting Policies

OMIDRIA Royalties, Milestones and Contract Royalty Assets

We have rights to receive future royalties from Rayner on OMIDRIA net sales at royalty rates that vary based on geography and certain regulatory contingencies. Therefore, future OMIDRIA royalties are treated as variable consideration. The sale of OMIDRIA qualified as an asset sale under GAAP. To measure the OMIDRIA contract royalty asset we used the expected value approach, which is the sum of the discounted probability-weighted royalty payments we would receive using a range of potential outcomes to the extent that it is probable that a significant reversal in the amount of cumulative income recognized will not occur. As contemplated by the Asset Purchase Agreement, the royalty rate applicable to U.S. net sales of OMIDRIA was reduced from 50% to 30% upon the occurrence, in December 2022, of the event triggering the $200.0 million Milestone Payment. Consequently, in December 2022, we revalued the OMIDRIA contract royalty asset using the 30% royalty rate on U.S. net sales and adjusted the probability-weighted outcomes to reflect the occurrence of the Milestone Event. Royalties earned are recorded as a reduction to the OMIDRIA contract royalty asset. The amount recorded in discontinued operations in future periods will reflect interest earned on the outstanding OMIDRIA contract royalty asset at an effective interest rate of 11.0% and any amounts we receive that are different from the expected royalties. The OMIDRIA contract royalty asset will be re-measured periodically using the expected value approach based on actual results and future expectations. Any required adjustment to the OMIDRIA contract royalty asset will be recorded in discontinued operations.

OMIDRIA Royalty Obligation

On September 30, 2022, we sold to DRI Healthcare Acquisitions LP (“DRI”) an interest in a portion of our future OMIDRIA royalty receipts for a purchase price of $125.0 million in cash (see “Note 8 – OMIDRIA Royalty Obligation”).

The $125.0 million cash consideration obtained is classified as a liability and is recorded as an “OMIDRIA royalty obligation” on our condensed consolidated balance sheet. The liability is being amortized over the term of the arrangement using the implied effective interest rate of 9.4% and interest expense is recorded as a component of continuing operations.

To the extent our estimates of future royalties differ materially from previous estimates, we will adjust the carrying amount of the liability for future OMIDRIA royalties to the present value of the revised estimated cash flows, discounted at the original effective interest rate of 9.4% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations.

Inventory

We expense inventory costs related to product candidates as research and development expenses until regulatory approval is reasonably assured in the U.S. or the European Union (“EU”). Once approval is reasonably assured, costs, including amounts related to third-party manufacturing, transportation and internal labor and overhead, will be capitalized.

Right-of-Use Assets and Related Lease Liabilities

We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not readily available. We recognize variable lease payments, when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease.

We record finance lease obligations as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of finance lease obligations is included in interest expense and recognized using the effective interest method over the lease term.

We account for leases with initial terms of 12 months or less as an operating expense.

Stock-Based Compensation

Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards and restricted stock units (“RSU”) based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes valuation model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected option life. Compensation expense is recognized over the requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized.

Note 5 - Certain Balance Sheet Accounts - Contract Royalty Asset (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-term contract royalty asset	$ 29,228	$ 28,797
Long-term contract royalty asset	119,502	123,425
Total OMIDRIA contract royalty asset	$ 148,730	$ 152,222

Note 6 - Investments and Fair-Value Measurement (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Investment Income, Interest	$ 4.0	$ 0.4	$ 11.7	$ 0.6
Demand Deposits [Member]
Restricted Cash, Current	$ 30.6		$ 30.6		$ 11.0

Note 10 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Text Block]

Note 10—Commitments and Contingencies

Good and Service Contracts

We have various agreements with third parties that collectively require payment of termination fees totaling $27.4 million as of September 30, 2023 if we cancel the work within specific time frames, either prior to commencing or during performance of the contracted services.

Development Milestones and Product Royalties

We have licensed a variety of intellectual property from third parties that we are currently developing or may develop in the future. These licenses may require milestone payments during the clinical development processes or on approval of commercial sale as well as low single- to low double-digit royalties on the net income or net sales of the product. For the three and nine months ended September 30, 2023, we paid $5.0 million associated with development milestone expenses related to the OMS906 program. For the three and nine months ended September 30, 2022, development milestones were not significant. Should narsoplimab be approved, we would owe milestone payments to development partners and would be obligated to pay low single-digit royalties on net sales of the product.

Note 11 - Shareholders' Equity (Deficit) (Details Textual) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	Jun. 23, 2023	Jun. 30, 2023	Nov. 09, 2023	Sep. 30, 2023	Apr. 12, 2023	Mar. 01, 2021
Equity Offering Facility, Maximum Aggregate Offering Amount				$ 150		$ 150
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)					$ 23
2017 Omnibus Incentive Compensation Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares)	5,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)				8,613,348
Subsequent Event [Member]
Stock Repurchase Program, Authorized Amount			$ 50
At the Market Equity Offering Program [Member]
Stock Issued During Period, Shares, New Issues (in shares)		0

Note 7 - Unsecured Convertible Senior Notes - Schedule of Debt Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Convertible Senior Notes 2023 [Member]
Contractual interest expense	$ 1,484	$ 1,484	$ 4,453	$ 4,453
Amortization of debt issuance costs	179	167	528	492
Total	1,663	1,651	4,981	4,945
Convertible Senior Notes 2026 [Member]
Contractual interest expense	2,954	2,954	8,861	8,861
Amortization of debt issuance costs	312	294	922	869
Total	$ 3,266	$ 3,248	$ 9,783	$ 9,730

Note 1 - Organization and Basis of Presentation (Details Textual) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended						9 Months Ended
	Dec. 23, 2021	Dec. 31, 2022	Dec. 23, 2022	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Feb. 28, 2023	Mar. 01, 2021
Milestone Payment If Achieved Under Asset Purchase Agreement	$ 200,000	$ 200,000										$ 200,000
Milestone Period (Year)	4 years
Milestone Payment Receivable		$ 200,000		$ 0						$ 0
Percentage of Royalty Receivable on Sale of Product Rights	50.00%	30.00%	30.00%
Cash, Cash Equivalents, and Short-Term Investments				310,300						310,300
Net Income (Loss) Attributable to Parent				(37,750)	$ (37,294)	$ (33,701)	$ (17,456)	$ (30,849)	$ (33,011)	(108,745)	$ (81,316)
Net Cash Provided by (Used in) Operating Activities										109,551	$ (61,101)
Cash Proceeds From Milestone Payment						$ 200,000
Long-Term Debt, Gross		$ 320,030		320,030						320,030
Equity Offering Facility, Maximum Aggregate Offering Amount				150,000						150,000			$ 150,000
Convertible Senior Notes 2023 [Member]
Long-Term Debt, Gross		$ 95,000		$ 95,000						$ 95,000
Discontinued Operations, Disposed of by Sale [Member] \| Omidria Assets Disposal [Member]
Proceeds from Divestiture of Businesses	$ 126,000

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2021	62,628,855
Balance at Dec. 31, 2021	$ 626	$ 706,288	$ (683,134)	$ 23,780
Stock-based compensation expense	0	3,892	0	3,892
Net loss	$ 0	0	(33,011)	(33,011)
Exercise of stock options (in shares)	101,160
Exercise of stock options	$ 1	413	0	414
Balance (in shares) at Mar. 31, 2022	62,730,015
Balance at Mar. 31, 2022	$ 627	710,593	(716,145)	(4,925)
Balance (in shares) at Dec. 31, 2021	62,628,855
Balance at Dec. 31, 2021	$ 626	706,288	(683,134)	23,780
Net loss				(81,316)
Balance (in shares) at Sep. 30, 2022	62,730,015
Balance at Sep. 30, 2022	$ 627	717,509	(764,450)	(46,314)
Balance (in shares) at Mar. 31, 2022	62,730,015
Balance at Mar. 31, 2022	$ 627	710,593	(716,145)	(4,925)
Stock-based compensation expense	0	3,072	0	3,072
Net loss	$ 0	0	(30,849)	(30,849)
Balance (in shares) at Jun. 30, 2022	62,730,015
Balance at Jun. 30, 2022	$ 627	713,665	(746,994)	(32,702)
Stock-based compensation expense	0	3,844	0	3,844
Net loss	$ 0	0	(17,456)	(17,456)
Balance (in shares) at Sep. 30, 2022	62,730,015
Balance at Sep. 30, 2022	$ 627	717,509	(764,450)	(46,314)
Balance (in shares) at Dec. 31, 2022	62,828,765
Balance at Dec. 31, 2022	$ 628	720,773	(635,717)	85,684
Stock-based compensation expense	0	2,953	0	2,953
Net loss	$ 0	0	(33,701)	(33,701)
Balance (in shares) at Mar. 31, 2023	62,828,765
Balance at Mar. 31, 2023	$ 628	723,726	(669,418)	54,936
Balance (in shares) at Dec. 31, 2022	62,828,765
Balance at Dec. 31, 2022	$ 628	720,773	(635,717)	85,684
Net loss				$ (108,745)
Exercise of stock options (in shares)				36,726
Balance (in shares) at Sep. 30, 2023	62,865,491
Balance at Sep. 30, 2023	$ 628	729,882	(744,462)	$ (13,952)
Balance (in shares) at Mar. 31, 2023	62,828,765
Balance at Mar. 31, 2023	$ 628	723,726	(669,418)	54,936
Stock-based compensation expense	0	2,771	0	2,771
Net loss	$ 0	0	(37,294)	(37,294)
Exercise of stock options (in shares)	19,556
Exercise of stock options	$ 0	97	0	97
Balance (in shares) at Jun. 30, 2023	62,848,321
Balance at Jun. 30, 2023	$ 628	726,594	(706,712)	20,510
Stock-based compensation expense	0	3,235	0	3,235
Net loss	$ 0	0	(37,750)	(37,750)
Exercise of stock options (in shares)	17,170
Exercise of stock options	$ 0	53	0	53
Balance (in shares) at Sep. 30, 2023	62,865,491
Balance at Sep. 30, 2023	$ 628	$ 729,882	$ (744,462)	$ (13,952)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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Total potentially dilutive shares excluded from net loss per share (in shares)

Note 8 - OMIDRIA Royalty Obligation - Schedule of Principal and Interest Payments on Royalty Obligations (Details) $ in Thousands	Sep. 30, 2023 USD ($)
2023, principal	$ 298
2023, interest	2,952
2023, annual cap	3,250
2024, principal	8,576
2024, interest	11,424
2024, annual cap	20,000
2025, principal	14,641
2025, interest	10,359
2025, annual cap	25,000
2026, principal	16,081
2026, interest	8,919
2026, annual cap	25,000
2027, principal	17,664
2027, interest	7,336
2027, annual cap	25,000
Thereafter, principal	68,164
Thereafter, interest	10,586
Thereafter, annual cap	78,750
Total scheduled payments, principal	125,424
Total scheduled payments, interest	51,576
Total scheduled payments, annual cap	$ 177,000

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 30,640	$ 11,009
Short-term investments	279,670	183,909
OMIDRIA contract royalty asset, short-term	29,228	28,797
Receivables	6,878	213,221
Prepaid expense and other assets	4,922	6,300
Total current assets	351,338	443,236
OMIDRIA contract royalty asset	119,502	123,425
Right of use assets	19,460	21,762
Property and equipment, net	1,717	1,492
Restricted investments	1,054	1,054
Total assets	493,071	590,969
Current liabilities:
Accounts payable	5,866	5,989
Accrued expenses	34,859	30,551
Current portion of unsecured convertible senior notes, net	94,909	94,381
Current portion of OMIDRIA royalty obligation	6,654	1,152
Current portion of lease liabilities	4,888	4,310
Total current liabilities	147,176	136,383
Unsecured convertible senior notes, net	221,828	220,906
OMIDRIA royalty obligation	118,770	125,126
Lease liabilities, non-current	19,249	22,426
Other accrued liabilities, non-current	0	444
Commitments and contingencies (Note 10)
Shareholders’ equity (deficit):
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized; none issued and outstanding at September 30, 2023 and December 31, 2022.	0	0
Common stock, par value $0.01 per share, 150,000,000 shares authorized at September 30, 2023 and December 31, 2022; 62,865,491 and 62,828,765 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively.	628	628
Additional paid-in capital	729,882	720,773
Accumulated deficit	(744,462)	(635,717)
Total shareholders’ equity (deficit)	(13,952)	85,684
Total liabilities and shareholders’ equity (deficit)	$ 493,071	$ 590,969

Note 4 - Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares

3 Months Ended

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

Sep. 30, 2023

Sep. 30, 2022

17,218,446

17,333,039

17,221,390

17,321,993

Convertible Senior Notes 2026 [Member]

Total potentially dilutive shares excluded from net loss per share (in shares)

^[1]

12,172,008

Convertible Senior Notes 2023 [Member]

Total potentially dilutive shares excluded from net loss per share (in shares)

^[1]

4,941,739

Share-Based Payment Arrangement, Option [Member]

Total potentially dilutive shares excluded from net loss per share (in shares)

34,450

19,292

37,394

8,246

Restricted Stock Units (RSUs) [Member]

Total potentially dilutive shares excluded from net loss per share (in shares)

70,250

200,000

70,250

200,000

[1]	The 2023 Notes and 2026 Notes (defined below) are subject to capped call arrangements that potentially reduce the dilutive effect as described in “Note 7 — Unsecured Convertible Senior Notes.” Any potential impact of the capped call arrangements is excluded from this table.

Note 12 - Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	15,304,930	13,872,973
Common Stock, Shares, Outstanding, Above Period End Closing Price (in shares)	15,200,000
Share Price (in dollars per share)	$ 2.92
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	15,300,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)	5,100,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 2 months 12 days
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 17.1
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	70,250
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share)	$ 7.53

Note 8 - OMIDRIA Royalty Obligation (Details Textual) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Interest Expense		$ 7,916	$ 4,932	$ 23,781	$ 14,799
Royalty Obligation [Member]
Interest Expense		3,000		8,900
Royalty Obligation [Member] \| Fair Value, Inputs, Level 3 [Member]
Liabilities, Fair Value Disclosure		116,200		116,200
DRI Healthcare Acquisition LP [Member]
Proceeds From Royalty Obligation	$ 125,000
Royalty Obligation, Maximum Payout Payable		$ 177,000		$ 177,000
Maximum Royalty Payable Percentage		9.40%		9.40%		9.40%

Amount of the cost of borrowed funds accounted for as interest expense.

Note 3 - Discontinued Operations

9 Months Ended

Sep. 30, 2023

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 3—Discontinued Operations

On December 23, 2021, we sold OMIDRIA and certain related assets including inventory and prepaid expenses to Rayner.

Under the Asset Purchase Agreement, the achievement of the Milestone Event in December 2022 triggered a $200.0 million Milestone Payment from Rayner and a reduction in the U.S. royalty rate from 50% to 30% on OMIDRIA net sales until the expiration or termination of the last issued and unexpired U.S. patent, which we expect to occur no earlier than 2033. The Milestone Event resulted in recognition of the $200.0 million Milestone Payment, which we received in February 2023. Upon the occurrence of certain events described in the Asset Purchase Agreement, including during any specific period in which OMIDRIA is no longer eligible for separate payment, the U.S. base royalty rate would be further reduced to 10%.

The sale of OMIDRIA was recorded as an asset sale. Additionally, the results of operations related to OMIDRIA are recorded as income from discontinued operations for all periods presented in the condensed consolidated statements of operations and comprehensive loss.

The following schedule presents a roll forward of the OMIDRIA contract royalty asset (in thousands):

OMIDRIA contract royalty asset at December 31, 2022	$	152,222
Royalties earned		(29,900	)
Interest earned on OMIDRIA contract royalty asset		11,484
Remeasurement adjustments		14,924
OMIDRIA contract royalty asset at September 30, 2023	$	148,730

Net income from discontinued operations is as follows:

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
	(In thousands)
Interest earned on OMIDRIA contract royalty asset	$	3,730	$	4,356	$	11,484	$	13,739
Remeasurement adjustments		10,100		32,917		14,924		40,631
Other income, net		76		63		480		295
Net income from discontinued operations, net of tax	$	13,906	$	37,336	$	26,888	$	54,665

Cash flow from discontinued operations is as follows:

	*Nine Months Ended*
	*September 30,*
	*2023*		*2022*
	(In thousands)
Net cash provided by discontinued operations from operating activities	$	232,081	$	60,188

Net cash provided by discontinued operations primarily represents royalties received and the $200.0 million Milestone Payment that we collected from Rayner in February 2023. 

Note 9 - Leases (Details Textual) $ in Thousands		9 Months Ended
Note 9 - Leases (Details Textual) $ in Thousands	Jan. 14, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Number Of Options To Extend Lease Term		2
Lessee, Operating Lease, Term of Contract (Year)		5 years
Restricted Cash and Cash Equivalents, Noncurrent		$ 1,054		$ 1,054
Decrease in Right Of Use Asset Due To Early Operating Lease Termination	$ 4,700
Gain (Loss) on Termination of Lease	500	$ (0)	$ 454
Early Lease Termination Agreement [Member]
Increase (Decrease) in Operating Lease Liability	$ (5,200)

Note 6 - Investments and Fair-Value Measurement

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Text Block]

Note 6—Investments and Fair-Value Measurements

All of our investments are held in our name and are classified as short-term and held-to-maturity on the accompanying condensed consolidated balance sheets. Investment income is included as a component of other income on our condensed consolidated statement of operations and comprehensive loss. Investment income for the three months ended September 30, 2023 and September 30, 2022 consists primarily of interest earned of $4.0 million and $0.4 million, respectively. Investment income for the nine months ended September 30, 2023 and 2022 consists of interest income earned of $11.7 million and $0.6 million, respectively.

The following tables summarize our investments:

	*September 30, 2023*
			*Gross Unrealized*
	*Amortized Cost*		*Gains/(Losses)*		*Estimated Fair Value*
	(In thousands)

U.S. government securities classified as short-term investments	$	127,385	$	2	$	127,387
Money-market funds classified as short-term investments		152,285		—		152,285
Total short-term investments		279,670		2		279,672
Certificate of deposit classified as non-current restricted investments		1,054		—		1,054
Total	$	280,724	$	2	$	280,726

	December 31, 2022
			Gross Unrealized
	Amortized Cost		Gains/(Losses)		Estimated Fair Value
	(In thousands)

U.S. government securities classified as short-term investments	$	99,027	$	22	$	99,049
Money-market funds classified as short-term investments		84,882		—		84,882
Total short-term investments		183,909		22		183,931
Certificate of deposit classified as non-current restricted investments		1,054		—		1,054
Total	$	184,963	$	22	$	184,985

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:

Level 1—Observable inputs for identical assets or liabilities, such as quoted prices in active markets;

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3—Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

Our fair value hierarchy for our financial assets and liabilities are as follows:

	*September 30, 2023*
	*Level 1*		*Level 2*		*Level 3*		*Total*
	(In thousands)
Assets:
U.S. government securities classified as short-term investments	$	—	$	127,387	$	—	$	127,387
Money-market funds classified as short-term investments		152,285		—		—		152,285
Total short-term investments		152,285		127,387		—		279,672
Certificate of deposit classified as non-current restricted investments		1,054		—		—		1,054
Total	$	153,339	$	127,387	$	—	$	280,726

	*December 31, 2022*
	*Level 1*		*Level 2*		*Level 3*		*Total*
	(In thousands)
Assets:
U.S. government securities classified as short-term investments	$	—	$	99,049	$	—	$	99,049
Money-market funds classified as short-term investments		84,882		—		—		84,882
Total short-term investments		84,882		99,049		—		183,931
Certificate of deposit classified as non-current restricted investments		1,054		—		—		1,054
Total	$	85,936	$	99,049	$	—	$	184,985

Cash held in demand deposit accounts of $30.6 million and $11.0 million is excluded from our fair-value hierarchy disclosure as of September 30, 2023 and December 31, 2022, respectively. The carrying amounts reported in the accompanying condensed consolidated balance sheets for receivables, accounts payable and other current monetary assets and liabilities approximate fair value.

See “Note 7—Unsecured Convertible Senior Notes” and “Note 8—OMIDRIA Royalty Obligation” for the carrying amount and estimated fair value of our outstanding convertible senior notes and the OMIDRIA royalty obligation.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Note 3 - Discontinued Operations (Details Textual) - USD ($) $ in Billions		1 Months Ended
	Dec. 23, 2021	Feb. 28, 2023	Dec. 31, 2022	Dec. 23, 2022
Milestone Payment If Achieved Under Asset Purchase Agreement	$ 0.2	$ 0.2	$ 0.2
Percentage of Royalty Receivable on Sale of Product Rights	50.00%		30.00%	30.00%
Revenue Recognition, Milestone Method, Revenue Recognized		$ 0.2
Percentage of Reduction in Royalty Receivable Upon Breach of Agreement Term	10.00%

Note 6 - Investments and Fair-Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-term investments	$ 279,670	$ 183,909
Restricted investments	1,054	1,054
Fair Value, Recurring [Member]
Short-term investments	279,672	183,931
Restricted investments	1,054	1,054
Total	280,726	184,985
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Short-term investments	152,285	84,882
Restricted investments	1,054	1,054
Total	153,339	85,936
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Short-term investments	127,387	99,049
Restricted investments	0	0
Total	127,387	99,049
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Short-term investments	0	0
Restricted investments	0	0
Total	0	0
US Treasury Securities [Member] \| Fair Value, Recurring [Member]
Short-term investments	127,387	99,049
US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Short-term investments	0	0
US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Short-term investments	127,387	99,049
US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Short-term investments	0	0
Money Market Funds [Member] \| Fair Value, Recurring [Member]
Short-term investments	152,285	84,882
Money Market Funds [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Short-term investments	152,285	84,882
Money Market Funds [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Short-term investments	0	0
Money Market Funds [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Short-term investments	$ 0	$ 0

Note 12 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Text Block]

Note 12—Stock-Based Compensation

Our stock option plans provide for the grant of incentive and non-qualified stock options, restricted stock awards, RSUs, and other stock awards to employees, non-employee directors and consultants.

Stock-based compensation is as follows:

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
	(In thousands)
Continuing operations
Research and development	$	1,305		$	1,672		$	3,710		$	4,777
Selling, general and administrative		2,054			2,200			5,456			6,170
Total stock-based compensation in continuing operations		3,359			3,872			9,166			10,947
Discontinued operations		(124	)		(28	)		(207	)		(139	)
Total stock-based compensation	$	3,235		$	3,844		$	8,959		$	10,808

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were applied to all stock option grants:

	*Three Months Ended*			*Nine Months Ended*
	*September 30, 2023*			*September 30, 2023*
Estimated weighted-average fair value	$	2.42		$	2.54
Weighted-average assumptions:
Expected volatility		93	%		93	%
Expected life, in years		7.1			7.1
Risk-free interest rate		3.98	%		3.96	%
Expected dividend yield		—	%		—	%

Stock option activity for all stock plans and related information is as follows:

				*Weighted-*
				*Average*				*Aggregate*
				*Exercise*		*Remaining*		*Intrinsic*
	*Options*			*Price per*		*Contractual Life*		*Value*
	*Outstanding*			*Share*		*(In years)*		*(In thousands)*
Balance at December 31, 2022		13,872,973		$	11.02
Granted		2,908,200			3.13
Exercised		(36,726	)		4.10
Forfeited		(1,439,517	)		10.12
Balance at September 30, 2023		15,304,930		$	9.62		6.3	$	80
Vested and expected to vest at September 30, 2023		14,760,623		$	9.78		6.2	$	77
Exercisable at September 30, 2023		10,169,314		$	11.75		4.8	$	44

Of the 15.3 million common stock options outstanding as of September 30, 2023, 15.2 million have an exercise price per share above $ 2.92, which was the closing price of our stock on the Nasdaq exchange on September 30, 2023.

As of September 30, 2023, there were 5.1 million unvested options outstanding that will vest over a weighted-average period of 2.2 years. The total estimated compensation expense yet to be recognized on outstanding options is $ 17.1 million.

The Company had 70,250 unvested RSUs outstanding as of September 30, 2023 that vest on December 1, 2023. The weighted average grant date fair value per share was $7.53.

Note 3 - Discontinued Operations - Contract Royalty Asset (Details) - Discontinued Operations, Disposed of by Sale [Member] - Omidria Assets Disposal [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
OMIDRIA contract royalty asset at December 31, 2022			$ 152,222
Royalties earned			(29,900)
Interest earned on OMIDRIA contract royalty asset	$ 3,730	$ 4,356	11,484	$ 13,739
Remeasurement adjustments	10,100	$ 32,917	14,924	$ 40,631
OMIDRIA contract royalty asset at September 30, 2023	$ 148,730		$ 148,730

Note 12 - Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
	(In thousands)
Continuing operations
Research and development	$	1,305		$	1,672		$	3,710		$	4,777
Selling, general and administrative		2,054			2,200			5,456			6,170
Total stock-based compensation in continuing operations		3,359			3,872			9,166			10,947
Discontinued operations		(124	)		(28	)		(207	)		(139	)
Total stock-based compensation	$	3,235		$	3,844		$	8,959		$	10,808

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	*Three Months Ended*			*Nine Months Ended*
	*September 30, 2023*			*September 30, 2023*
Estimated weighted-average fair value	$	2.42		$	2.54
Weighted-average assumptions:
Expected volatility		93	%		93	%
Expected life, in years		7.1			7.1
Risk-free interest rate		3.98	%		3.96	%
Expected dividend yield		—	%		—	%

Share-Based Payment Arrangement, Activity [Table Text Block]

				*Weighted-*
				*Average*				*Aggregate*
				*Exercise*		*Remaining*		*Intrinsic*
	*Options*			*Price per*		*Contractual Life*		*Value*
	*Outstanding*			*Share*		*(In years)*		*(In thousands)*
Balance at December 31, 2022		13,872,973		$	11.02
Granted		2,908,200			3.13
Exercised		(36,726	)		4.10
Forfeited		(1,439,517	)		10.12
Balance at September 30, 2023		15,304,930		$	9.62		6.3	$	80
Vested and expected to vest at September 30, 2023		14,760,623		$	9.78		6.2	$	77
Exercisable at September 30, 2023		10,169,314		$	11.75		4.8	$	44

Note 3 - Discontinued Operations - Schedule of Discontinued Operations Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Discontinued Operations, Disposed of by Sale [Member] \| Omidria Assets Disposal [Member]
Net cash provided by discontinued operations from operating activities	$ 232,081	$ 60,188

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	20,000,000	20,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	62,865,491	62,828,765
Common stock, outstanding (in shares)	62,865,491	62,828,765

Note 8 - OMIDRIA Royalty Obligation (Tables)

9 Months Ended

Sep. 30, 2023

Maximum Scheduled Principal and Interest Payments of Royalty Obligation [Table Text Block]

					*Total*
	*Principal*		*Interest*		*Annual Cap*
	(In thousands)
2023	$	298	$	2,952	$	3,250
2024		8,576		11,424		20,000
2025		14,641		10,359		25,000
2026		16,081		8,919		25,000
2027		17,664		7,336		25,000
Thereafter		68,164		10,586		78,750
Total scheduled payments	$	125,424	$	51,576	$	177,000

Note 5 - Certain Balance Sheet Accounts (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Depreciation, Depletion and Amortization, Nonproduction	$ 0.2	$ 0.3	$ 0.7	$ 0.8

Note 4 - Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
2026 Notes convertible to common stock ⁽¹⁾		12,172,008		12,172,008		12,172,008		12,172,008
2023 Notes convertible to common stock ⁽¹⁾		4,941,739		4,941,739		4,941,739		4,941,739
Outstanding options to purchase common stock		34,450		19,292		37,394		8,246
Outstanding restricted stock units		70,250		200,000		70,250		200,000
Total potentially dilutive shares excluded from net loss per share		17,218,446		17,333,039		17,221,390		17,321,993

Note 7 - Unsecured Convertible Senior Notes (Details Textual) $ / shares in Units, shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)
Long-Term Debt, Gross	$ 320,030,000	$ 320,030,000	$ 320,030,000
Debt Issuance Costs, Net	3,293,000	3,293,000	4,743,000
Convertible Senior Notes 2023 [Member]
Long-Term Debt, Gross	$ 95,000,000	$ 95,000,000	95,000,000
Debt Instrument, Interest Rate, Stated Percentage	6.25%	6.25%
Debt Issuance Costs, Net	$ 91,000	$ 91,000	619,000
Debt Instrument, Interest Rate, Effective Percentage	7.00%	7.00%
Debt Instrument, Convertible, Conversion Ratio	52.0183
Debt Instrument, Convertible Debt, Denominator Amount	$ 1,000	$ 1,000
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 19.22	$ 19.22
Debt Conversion, Converted Instrument, Shares Issued (in shares) \| shares	4.9	4.9
Convertible Senior Notes 2023 [Member] \| Minimum [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 19.22	$ 19.22
Convertible Senior Notes 2023 [Member] \| Maximum [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 28.84	$ 28.84
Convertible Senior Notes 2026 [Member]
Long-Term Debt, Gross	$ 225,030,000	$ 225,030,000	225,030,000
Debt Instrument, Interest Rate, Stated Percentage	5.25%	5.25%
Debt Issuance Costs, Net	$ 3,202,000	$ 3,202,000	$ 4,124,000
Debt Instrument, Interest Rate, Effective Percentage	5.90%	5.90%
Debt Instrument, Convertible, Conversion Ratio	54.0906
Debt Instrument, Convertible Debt, Denominator Amount	$ 1,000	$ 1,000
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 18.4875	$ 18.4875
Debt Conversion, Converted Instrument, Shares Issued (in shares) \| shares	12.2	12.2
Convertible Senior Notes 2026 [Member] \| Minimum [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 18.49	$ 18.49
Convertible Senior Notes 2026 [Member] \| Maximum [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share) \| $ / shares	$ 26.1	$ 26.1

Note 9 - Leases (Tables)

9 Months Ended

Sep. 30, 2023

Lease, Cost [Table Text Block]

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
	(In thousands)
Lease cost
Operating lease cost	$	1,603		$	1,659		$	4,852		$	4,529
Finance lease cost:
Amortization		140			250			529			570
Interest		29			32			121			123
Variable lease cost		807			813			2,354			2,395
Sublease income		(375	)		(432	)		(1,125	)		(1,377	)
Net lease cost	$	2,204		$	2,322		$	6,731		$	6,240

	*Nine Months Ended*
	*September 30,*
	*2023*		*2022*
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Cash payments for operating leases	$	5,356	$	5,312
Cash payments for financing leases	$	499	$	598

Note 9 - Leases

9 Months Ended

Sep. 30, 2023

Lease Disclosure [Text Block]

Note 9—Leases

We have an operating lease for our office and laboratory facilities with an initial term that ends in November 2027 and two options to extend the lease term by an additional five years each. Restricted investments of $1.1 million represent the security deposit on our office and laboratory facilities. On January 14, 2022, we entered into an agreement with our landlord to early terminate a portion of the rentable square footage of our office and laboratory facilities, which reduced the right of use asset by $4.7 million and related liability by $5.2 million. We recorded a non-cash gain of $0.5 million upon early termination of this portion of the lease. In addition, we carry various finance lease obligations for laboratory equipment.

Supplemental lease information is as follows:

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
	(In thousands)
Lease cost
Operating lease cost	$	1,603		$	1,659		$	4,852		$	4,529
Finance lease cost:
Amortization		140			250			529			570
Interest		29			32			121			123
Variable lease cost		807			813			2,354			2,395
Sublease income		(375	)		(432	)		(1,125	)		(1,377	)
Net lease cost	$	2,204		$	2,322		$	6,731		$	6,240

Cash paid for amounts included in the measurement of lease liabilities is as follows:

	*Nine Months Ended*
	*September 30,*
	*2023*		*2022*
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Cash payments for operating leases	$	5,356	$	5,312
Cash payments for financing leases	$	499	$	598

Note 3 - Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2023

Disposal Groups, Including Discontinued Operations, Contract Royalty Asset [Table Text Block]

OMIDRIA contract royalty asset at December 31, 2022	$	152,222
Royalties earned		(29,900	)
Interest earned on OMIDRIA contract royalty asset		11,484
Remeasurement adjustments		14,924
OMIDRIA contract royalty asset at September 30, 2023	$	148,730

Disposal Groups, Including Discontinued Operations [Table Text Block]

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
	(In thousands)
Interest earned on OMIDRIA contract royalty asset	$	3,730	$	4,356	$	11,484	$	13,739
Remeasurement adjustments		10,100		32,917		14,924		40,631
Other income, net		76		63		480		295
Net income from discontinued operations, net of tax	$	13,906	$	37,336	$	26,888	$	54,665

Schedule Of Disposal Groups Including Discontinued Operations Cash Flows [Table Text Block]

	*Nine Months Ended*
	*September 30,*
	*2023*		*2022*
	(In thousands)
Net cash provided by discontinued operations from operating activities	$	232,081	$	60,188

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Unamortized debt issuance costs

Note 7 - Unsecured Convertible Senior Notes - Convertible Debt (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

Principal amount

$ 320,030

(3,293)

(4,743)

Total unsecured convertible senior notes, net

316,737

315,287

Convertible Senior Notes 2023 [Member]

Principal amount

95,000

Unamortized debt issuance costs

(91)

(619)

Total unsecured convertible senior notes, net

94,909

94,381

Fair value of outstanding unsecured convertible senior notes (1)

^[1]

94,822

92,031

Convertible Senior Notes 2026 [Member]

Principal amount

225,030

Unamortized debt issuance costs

(3,202)

(4,124)

Total unsecured convertible senior notes, net

221,828

220,906

Fair value of outstanding unsecured convertible senior notes (1)

^[1]

$ 136,424

$ 118,141

[1]	The fair value is classified as Level 3 due to the limited trading activity for the unsecured convertible senior notes.

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Note 4 - Net Loss Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Text Block]

Note 4—Net Loss Per Share

Our potentially dilutive securities include potential common shares related to our stock options, RSUs and unsecured convertible senior notes. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period.

Potentially dilutive securities excluded from Diluted EPS are as follows:

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2023*		*2022*		*2023*		*2022*
2026 Notes convertible to common stock ⁽¹⁾		12,172,008		12,172,008		12,172,008		12,172,008
2023 Notes convertible to common stock ⁽¹⁾		4,941,739		4,941,739		4,941,739		4,941,739
Outstanding options to purchase common stock		34,450		19,292		37,394		8,246
Outstanding restricted stock units		70,250		200,000		70,250		200,000
Total potentially dilutive shares excluded from net loss per share		17,218,446		17,333,039		17,221,390		17,321,993

(1)

The 2023 Notes and 2026 Notes (defined below) are subject to capped call arrangements that potentially reduce the dilutive effect as described in “Note 7 — Unsecured Convertible Senior Notes.” Any potential impact of the capped call arrangements is excluded from this table.

Note 5 - Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property and equipment, gross	$ 11,753	$ 11,040
Less accumulated depreciation and amortization	(10,036)	(9,548)
Total property and equipment, net	1,717	1,492
Finance Lease Equipment [Member]
Property and equipment, gross	6,608	6,204
Equipment [Member]
Property and equipment, gross	3,407	3,135
Computer Equipment [Member]
Property and equipment, gross	1,113	1,076
Furniture and Fixtures [Member]
Property and equipment, gross	$ 625	$ 625

Note 12 - Share-Based Compensation - Valuation Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Estimated weighted-average fair value (in dollars per share)	$ 2.42	$ 2.54
Expected volatility	93.00%	93.00%
Expected life, in years (Year)	7 years 1 month 6 days	7 years 1 month 6 days
Risk-free interest rate	3.98%	3.96%
Expected dividend yield	0.00%	0.00%

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Nov. 07, 2023
Document Information [Line Items]
Entity Central Index Key	0001285819
Entity Registrant Name	OMEROS CORP
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-34475
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1663741
Entity Address, Address Line One	201 Elliott Avenue West
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98119
City Area Code	206
Local Phone Number	676-5000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	OMER
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,865,491

Note 2 - Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands			1 Months Ended
	Sep. 30, 2022	Dec. 23, 2021	Dec. 31, 2022	Dec. 23, 2022	Sep. 30, 2023	Mar. 31, 2023
Percentage of Royalty Receivable on Sale of Product Rights		50.00%	30.00%	30.00%
Milestone Payment Receivable			$ 200,000		$ 0
Percentage Of Interest Earned on Outstanding Contract Royalty Asset						11.00%
DRI Healthcare Acquisition LP [Member]
Proceeds From Royalty Obligation	$ 125,000
Maximum Royalty Payable Percentage					9.40%	9.40%

Note 5 - Certain Balance Sheet Accounts - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Employee compensation	$ 12,556	$ 6,665
Clinical trials	9,351	5,536
Contract research and development	4,158	3,209
Interest payable	3,703	5,172
Consulting and professional fees	3,005	4,425
Income taxes payable	1,228	4,871
Other accrued expenses	858	673
Total accrued expenses	$ 34,859	$ 30,551

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Royalty Fees And Contract Royalty Asset [Policy Text Block]	OMIDRIA Royalties, Milestones and Contract Royalty Assets We have rights to receive future royalties from Rayner on OMIDRIA net sales at royalty rates that vary based on geography and certain regulatory contingencies. Therefore, future OMIDRIA royalties are treated as variable consideration. The sale of OMIDRIA qualified as an asset sale under GAAP. To measure the OMIDRIA contract royalty asset we used the expected value approach, which is the sum of the discounted probability-weighted royalty payments we would receive using a range of potential outcomes to the extent that it is probable that a significant reversal in the amount of cumulative income recognized will not occur. As contemplated by the Asset Purchase Agreement, the royalty rate applicable to U.S. net sales of OMIDRIA was reduced from 50% to 30% upon the occurrence, in December 2022, of the event triggering the $200.0 million Milestone Payment. Consequently, in December 2022, we revalued the OMIDRIA contract royalty asset using the 30% royalty rate on U.S. net sales and adjusted the probability-weighted outcomes to reflect the occurrence of the Milestone Event. Royalties earned are recorded as a reduction to the OMIDRIA contract royalty asset. The amount recorded in discontinued operations in future periods will reflect interest earned on the outstanding OMIDRIA contract royalty asset at an effective interest rate of 11.0% and any amounts we receive that are different from the expected royalties. The OMIDRIA contract royalty asset will be re-measured periodically using the expected value approach based on actual results and future expectations. Any required adjustment to the OMIDRIA contract royalty asset will be recorded in discontinued operations.
Royalty Obligation Policy [Policy Text Block]	OMIDRIA Royalty Obligation On September 30, 2022, we sold to DRI Healthcare Acquisitions LP (“DRI”) an interest in a portion of our future OMIDRIA royalty receipts for a purchase price of $125.0 million in cash (see “Note 8 – OMIDRIA Royalty Obligation”). The $125.0 million cash consideration obtained is classified as a liability and is recorded as an “OMIDRIA royalty obligation” on our condensed consolidated balance sheet. The liability is being amortized over the term of the arrangement using the implied effective interest rate of 9.4% and interest expense is recorded as a component of continuing operations. To the extent our estimates of future royalties differ materially from previous estimates, we will adjust the carrying amount of the liability for future OMIDRIA royalties to the present value of the revised estimated cash flows, discounted at the original effective interest rate of 9.4% utilizing the cumulative catch-up method. The offset to the adjustment would be recognized as a component of net income (loss) from continuing operations.
Inventory, Policy [Policy Text Block]	Inventory We expense inventory costs related to product candidates as research and development expenses until regulatory approval is reasonably assured in the U.S. or the European Union (“EU”). Once approval is reasonably assured, costs, including amounts related to third-party manufacturing, transportation and internal labor and overhead, will be capitalized.
Lessee, Leases [Policy Text Block]	Right-of-Use Assets and Related Lease Liabilities We record operating leases as right-of-use assets and recognize the related lease liabilities equal to the fair value of the lease payments using our incremental borrowing rate when the implicit rate in the lease agreement is not readily available. We recognize variable lease payments, when incurred. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. We record finance lease obligations as a component of property and equipment and amortize these assets within operating expenses on a straight-line basis to their residual values over the shorter of the term of the underlying lease or the estimated useful life of the equipment. The interest component of finance lease obligations is included in interest expense and recognized using the effective interest method over the lease term. We account for leases with initial terms of 12 months or less as an operating expense.
Share-Based Payment Arrangement [Policy Text Block]	Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payments, including grants of stock option awards and restricted stock units (“RSU”) based on estimated fair values. The fair value of our stock is calculated using the Black-Scholes valuation model, which requires judgmental assumptions around volatility, risk-free rates, forfeiture rates and expected option life. Compensation expense is recognized over the requisite service periods, which is generally the vesting period, using the straight-line method. Forfeiture expense is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates.
Income Tax, Policy [Policy Text Block]	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination. A valuation allowance is established when it is more likely than not that the deferred tax assets will not be realized.

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

Disclosure of accounting policy for award under share-based payment arrangement. Includes, but is not limited to, methodology and assumption used in measuring cost.

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Note 6 - Investments and Fair-Value Measurement (Tables)

9 Months Ended

Sep. 30, 2023

Debt Securities, Available-for-Sale [Table Text Block]

	*September 30, 2023*
			*Gross Unrealized*
	*Amortized Cost*		*Gains/(Losses)*		*Estimated Fair Value*
	(In thousands)

U.S. government securities classified as short-term investments	$	127,385	$	2	$	127,387
Money-market funds classified as short-term investments		152,285		—		152,285
Total short-term investments		279,670		2		279,672
Certificate of deposit classified as non-current restricted investments		1,054		—		1,054
Total	$	280,724	$	2	$	280,726

	December 31, 2022
			Gross Unrealized
	Amortized Cost		Gains/(Losses)		Estimated Fair Value
	(In thousands)

U.S. government securities classified as short-term investments	$	99,027	$	22	$	99,049
Money-market funds classified as short-term investments		84,882		—		84,882
Total short-term investments		183,909		22		183,931
Certificate of deposit classified as non-current restricted investments		1,054		—		1,054
Total	$	184,963	$	22	$	184,985

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	*September 30, 2023*
	*Level 1*		*Level 2*		*Level 3*		*Total*
	(In thousands)
Assets:
U.S. government securities classified as short-term investments	$	—	$	127,387	$	—	$	127,387
Money-market funds classified as short-term investments		152,285		—		—		152,285
Total short-term investments		152,285		127,387		—		279,672
Certificate of deposit classified as non-current restricted investments		1,054		—		—		1,054
Total	$	153,339	$	127,387	$	—	$	280,726

	*December 31, 2022*
	*Level 1*		*Level 2*		*Level 3*		*Total*
	(In thousands)
Assets:
U.S. government securities classified as short-term investments	$	—	$	99,049	$	—	$	99,049
Money-market funds classified as short-term investments		84,882		—		—		84,882
Total short-term investments		84,882		99,049		—		183,931
Certificate of deposit classified as non-current restricted investments		1,054		—		—		1,054
Total	$	85,936	$	99,049	$	—	$	184,985

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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