On Thursday, H.C. Wainwright adjusted their financial outlook for Olema Pharmaceuticals (NASDAQ:OLMA) shares, increasing the price target to $30.00 from the previous $28.00, while maintaining a Buy rating on the stock. The revision follows the announcement of updated data from a clinical study involving the company's drug candidate.
Olema Pharmaceuticals reported on Wednesday the latest findings from its Phase 1b/2 study assessing the combination of palazestrant and ribociclib in treating ER+/HER2- metastatic breast cancer.
The results, which are slated for presentation at the ESMO Breast Cancer Congress on May 17, detailed the completion of enrollment with 60 patients participating across various dosage levels.
The focus of the update was on the 50 patients who had a minimum of four weeks of follow-up as of the data cut-off on March 13. Among them, 44 patients received the recommended phase 2 dose (RP2D) of 120 mg. A significant proportion of the patients had previously progressed on CDK4/6 inhibitors.
The study highlighted that palazestrant did not significantly alter the exposure to ribociclib, and vice versa, which is considered significant as other oral Selective Estrogen Receptor Degraders (SERDs) have required dosage adjustments when used in combination with CDK4/6 inhibitors. This finding suggests a potential advantage for the palazestrant and ribociclib combination therapy.
Clinical benefit rate (CBR) was evaluable in 13 patients, who exhibited a partial response, complete response, or stable disease for at least 24 weeks. The overall CBR was 85% (11 out of 13 patients), with a CBR of 83% in patients with ESR1 mutations. This data underscores the therapeutic potential of the drug combination in a specific patient subset.
The positive results of the study have led to a heightened financial expectation for Olema Pharmaceuticals, as reflected in the raised price target by H.C. Wainwright. The company's shares are traded on the NASDAQ stock exchange under the ticker OLMA.
InvestingPro Insights
As Olema Pharmaceuticals (NASDAQ:OLMA) garners attention with its recent clinical study results, investors may find additional context in the company's financial metrics and analyst insights. With a market capitalization of $550.55 million, the company's valuation reflects the high-risk, high-reward nature of biotech investing. Notably, Olema Pharmaceuticals holds more cash than debt, which is an InvestingPro Tip indicating a degree of financial stability. However, the company is quickly burning through cash and has weak gross profit margins, which are areas of concern for potential investors.
Another InvestingPro Tip highlights that Olema's stock price movements have been quite volatile, with a 55.36% return over the last year, yet also experiencing a significant 29.79% year-to-date price total return decline. The volatility underscores the importance of keeping abreast of the latest market data and analyst perspectives. For those considering a deeper dive into Olema Pharmaceuticals, there are additional InvestingPro Tips available, which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The current P/E ratio stands at -4.85, reflecting the market's anticipation of future earnings or the lack thereof, as analysts do not expect the company to be profitable this year. Despite the challenges, Olema's liquid assets exceed short-term obligations, suggesting the company has some buffer to navigate its operational needs in the near term.
For investors seeking to make informed decisions on Olema Pharmaceuticals, it is worth noting that there are 6 additional InvestingPro Tips available that could provide further insights into the company's financial health and market position.
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