Olema Pharmaceuticals stock maintains Buy rating as cancer drug shows promising results

Investing.com - H.C. Wainwright has reiterated its Buy rating and $28.00 price target on Olema Pharmaceuticals (NASDAQ:OLMA) following impressive updated clinical trial data presented at the European Society for Medical Oncology (ESMO) conference. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $18 to $30, suggesting significant upside potential. The stock has shown remarkable momentum, gaining over 110% in the past six months despite recent volatility.

The data, presented Monday, comes from Olema’s Phase 1b/2 trial of palazestrant (pala) in combination with ribociclib (ribo) for patients with ER+/HER2- metastatic breast cancer. As of July 8, the trial had enrolled 72 patients across two dosage cohorts: 16 patients receiving 90 mg QD and 56 patients receiving 120 mg QD. With a market capitalization of $642 million and a strong financial health score from InvestingPro, the company maintains a solid foundation for its clinical development programs.

The objective response rate among 44 evaluable patients with measurable disease was 34%, including two complete responses and 13 partial responses. Notably, 26% of patients who had prior CDK4/6 inhibitor treatment also showed responses.

In the 120 mg cohort, with a median follow-up of 19 months, the median progression-free survival reached 15.5 months across all patients, an increase from the previously reported 13.8 months. Patients who had received prior CDK4/6 inhibitor treatment showed median progression-free survival of 12.2 months.

The safety and tolerability profiles remained consistent with known characteristics of both drugs, with no drug-drug interactions or new safety signals observed. The 90 mg dose has been selected for the upcoming Phase 3 OPERA-01 monotherapy and OPERA-02 combination therapy trials. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a current ratio of 11.09, providing strong financial flexibility to advance its clinical programs. Subscribers can access 10+ additional ProTips and comprehensive financial metrics to better evaluate OLMA’s investment potential.

In other recent news, Olema Pharmaceuticals reported significant developments in its clinical trials and collaborations. The company announced a new clinical trial collaboration with Pfizer to evaluate a combination therapy for metastatic breast cancer, focusing on the safety and combinability of Olema’s palazestrant with Pfizer’s investigational CDK4 inhibitor, atirmociclib. This collaboration has been viewed positively, with Oppenheimer maintaining an Outperform rating and a $22.00 price target, citing the strategic potential of the partnership. H.C. Wainwright also reiterated its Buy rating and set a $28.00 price target, emphasizing the promise of the clinical trial agreement.

Despite these positive developments, Olema faced challenges as its breast cancer trial results were overshadowed by disappointing data from Roche, leading to a significant drop in share value. Oppenheimer analyst Matthew Biegler noted that Olema’s "stellar" data could be eclipsed by Roche’s results. Meanwhile, Guggenheim initiated coverage of Olema with a Buy rating and a $20.00 price target, highlighting the company’s strong position in the oral SERD space for breast cancer treatment. These recent activities reflect a dynamic period for Olema Pharmaceuticals, as it navigates both promising partnerships and competitive challenges in the biotech sector.

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