On Wednesday, H.C. Wainwright reaffirmed its Buy rating and $30.00 price target for Olema Pharmaceuticals (NASDAQ:OLMA) shares, following the announcement of updated clinical study data. Currently trading at $9.64, the stock shows significant upside potential according to InvestingPro data, with analyst targets ranging from $20 to $30.
The company's Fair Value analysis suggests the stock is currently fairly valued. Olema Pharmaceuticals presented new information from its Phase 1b/2 study of palazestrant combined with ribociclib for treating ER+/HER2- metastatic breast cancer (mBC).
The study, which has now fully enrolled 62 patients, reached its data cut-off on November 11, with a median follow-up of 12 months. The majority of the patients involved were in the second or third line of treatment, and 74% had previously progressed on CDK4/6 inhibitors, including 8 patients who had received ribociclib.
Moreover, 28% of the patients had ESR1 mutations, which is slightly lower than the typical prevalence of 40-50%. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 7.1, holding more cash than debt on its balance sheet.
The update is significant as it showed that palazestrant did not affect ribociclib exposure, and ribociclib did not have a clinically meaningful effect on palazestrant exposure. This finding is particularly important because other oral Selective Estrogen Receptor Degraders (SERDs) have required dosage adjustments when used with CDK4/6 inhibitors due to changes in drug exposure.
Of the patients in the study, 49 were deemed clinically benefit response (CBR) evaluable, which means they achieved a partial response (PR), complete response (CR), or stable disease (SD) for at least 24 weeks. H.C. Wainwright's reiterated Buy rating and price target reflect the firm's ongoing confidence in Olema Pharmaceuticals' prospects based on the latest study results.
The strong analyst consensus is supported by additional insights available on InvestingPro, which features 10+ additional investment tips for OLMA and comprehensive financial analysis tools.
In other recent news, Olema Pharmaceuticals has been the subject of several analyst upgrades based on strong trial data and promising preclinical findings.
TD (TSX:TD) Cowen reiterated a Buy rating, encouraged by the Clinical Benefit Rate of 78-79% from a Phase II trial involving palbociclib and ribociclib. The firm anticipates a strong six-month landmark Progression-Free Survival rate, which could solidify the treatment's potential.
Jefferies also maintained a Buy rating, highlighting the potential of the company's KAT6 inhibitor, OP-3136. The drug's superior in vivo efficacy compared to Pfizer (NYSE:PFE)'s competing KAT6 inhibitor was noted. The firm expects OP-3136 to enter Phase 1 trials in early 2025.
Finally, Goldman Sachs (NYSE:GS) maintained its Buy rating on Olema Pharmaceuticals, following the presentation of preclinical data for OP-3136 at the EORTC-NCI-AACR Symposium. The studies demonstrated OP-3136's anti-tumor activity, showing further improvement when used with endocrine therapy and CDK4/6 inhibitors. These are recent developments shaping the investor sentiment around Olema Pharmaceuticals.
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