Form 4: Omeros CEO Exercises Stock Options, Settles Taxes

Omeros Corp's Chairman, CEO, and President, Gregory A. Demopulos, MD, exercised 400,000 stock options and settled associated tax liabilities through a net share settlement on February 18, 2026.

Summary

• Gregory A. Demopulos, MD, Chairman, CEO & President of Omeros Corp, exercised 400,000 stock options on February 18, 2026.
• The exercise price for these options was $10.27 per share.
• In connection with the exercise, 357,678 shares were withheld by Omeros Corporation for net share settlement to cover the exercise price and tax liability.
• The withheld shares were valued at $11.93 per share, based on the closing price on February 17, 2026, and remained in the Omeros treasury.
• Following these transactions, Dr. Demopulos directly beneficially owns 1,469,308 shares of common stock.
• He also indirectly beneficially owns 300,000 shares in the [Demopulos Child #1] Gift Trust, 300,000 shares in the [Demopulos Child #2] Gift Trust, and 123,945 shares by his spouse, though he disclaims beneficial ownership except for pecuniary interest.
• The exercised options vested over 48 equal monthly installments, starting April 1, 2015.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a largely neutral event, reflecting a standard executive compensation transaction. The exercise of options is a positive for the executive, but the net share settlement is a common mechanism for tax management rather than a strong signal of future performance.

Positives

• The exercise of stock options by a key executive can signal confidence in the company's future, as it converts potential value into actual shares.
• The options were exercised at $10.27, which is below the $11.93 price used for tax settlement, indicating the options were in-the-money.

Negatives

• A significant number of shares (357,678) were withheld by the company to cover the exercise price and tax liability, which reduces the direct beneficial ownership of the executive. While a common practice (net share settlement), it means fewer shares are held directly by the insider post-transaction.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider option exercises are a routine part of executive compensation, particularly as options vest and approach their expiration dates. This transaction reflects a standard mechanism for executives to realize value from their equity awards while managing tax obligations, rather than a direct statement on the company's immediate operational performance or strategic direction.

Related Party Transactions

• Shares held in the [Demopulos Child #1] Gift Trust, an irrevocable trust established for the benefit of a minor child of the reporting person.
• Shares held in the [Demopulos Child #2] Gift Trust, an irrevocable trust established for the benefit of a minor child of the reporting person.
• Shares indirectly owned by spouse.
• The reporting person disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein.

Stakeholder Impact

• Shareholders: Minimal direct impact. The withholding of shares for tax purposes means fewer shares are directly held by the CEO, but this is a common practice and not an open-market sale. It does not dilute existing shareholders.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction involving the exercise of stock options and subsequent net share settlement for tax purposes. It does not provide new information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate, as the filing itself does not present a compelling reason to buy or sell based solely on this information.

Keywords

Omeros Corp, OMER, Gregory Demopulos, stock options, insider transaction, Form 4, beneficial ownership, CEO, Chairman, President, equity compensation