Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com -- Olema Pharmaceuticals shares fell 28% in premarket trading Monday after the drug developer released data from an early-mid stage breast cancer trial that was overshadowed by disappointing results from Roche.
Oppenheimer analyst Matthew Biegler noted that Olema’s "stellar" data for its combination therapy could be eclipsed by Roche’s breast cancer trial results, "which missed the buy-side’s mark."
According to Biegler, Roche’s evERA trial failed to demonstrate a meaningful benefit in a subset of patients, creating additional risk for Roche’s front-line trial (persevERA) and by extension, Olema’s OPERA-02 trial.
Despite these concerns, Biegler maintained that "Olema’s palazestrant is a wonderful drug" and suggested that if front-line therapy "isn’t the answer, the company could always pivot OPERA-02 into the second-line."
The analyst expects Roche’s persevERA trial to continue affecting OLMA shares until its readout in the first half of 2026.
Biegler pointed out that Olema’s palazestrant data showed "more than twice the benefit that the control arm in (Roche’s) evERA mustered," though many investors might dismiss these results because the trial was single-armed.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.