Oppenheimer maintains Olema stock rating, sees Pfizer deal as strategic

Investing.com - Oppenheimer has reiterated an Outperform rating and $22.00 price target on Olema Pharmaceuticals (NASDAQ:OLMA) following the company’s collaboration announcement with Pfizer. According to InvestingPro data, analysts’ targets range from $18 to $30, with a strong buy consensus recommendation.

The research firm believes the recently announced partnership, which will test Pfizer’s next-generation CDK4-selective drug atirmociclib in combination with Olema’s palazestrant, could potentially lead to a future bidding war for the company.

Olema shares have gained 15% since the announcement compared to a 2% rise in the XBI biotech index, indicating investors view this as more than a standard research collaboration. The stock has shown impressive momentum, with a 54% surge over the past six months. InvestingPro analysis reveals 13+ additional insights about OLMA’s performance and financial health.

The Pfizer deal gives Olema strategic positioning with two major players in HR-positive breast cancer, as the company already has an ongoing palazestrant and ribociclib combination study (OPERA-02) with Novartis.

Oppenheimer notes that results from Roche’s PersevERA trial, expected imminently, could further impact Olema’s position if the data reads positively.

In other recent news, Olema Pharmaceuticals announced a clinical trial collaboration with Pfizer to explore a combination therapy for metastatic breast cancer. This collaboration will evaluate the safety and combinability of Olema’s palazestrant with Pfizer’s investigational CDK4 inhibitor, atirmociclib, in patients with ER+/HER2- metastatic breast cancer. The Phase 1b/2 dose escalation study is planned to begin in the second half of 2025. Following this announcement, H.C. Wainwright reiterated its Buy rating on Olema Pharmaceuticals, maintaining a $28.00 price target. The analyst firm cited the agreement with Pfizer as a positive development for the company. These recent developments are crucial for investors monitoring Olema’s progress in cancer treatment research.

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