Olema Pharmaceuticals (NASDAQ:OLMA) Issues Earnings Results

Key Points

• Olema reported a quarterly loss of $0.73 per share, missing analyst expectations of a $0.64 loss by $0.09.
• OPERA-01 is the key near-term catalyst, with top-line Phase III results for palazestrant expected in Q1 next year; it remains uncertain whether earlier Phase II results will be replicated.
• Olema reported about $414 million in cash, providing a runway into 2028. The company is advancing its clinical programs, including KAT6 inhibitor combination studies, and would pursue a U.S. launch itself if OPERA-01 succeeds.

Olema Pharmaceuticals (NASDAQ:OLMA - Get Free Report) released its earnings results on Tuesday. The company reported ($0.73) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.64) by ($0.09), FiscalAI reports.

Here are the key takeaways from Olema Pharmaceuticals' conference call:

• OPERA-01 is the company’s near-term catalyst: Olema expects top-line results in Q1 next year from its Phase III trial of palazestrant after CDK4/6 inhibitor treatment. Management highlighted Phase II PFS results in both ESR1-mutant and wild-type patients, but whether these results are replicated in Phase III remains uncertain.
• OPERA-02’s size and timing remain uncertain. The first-line trial testing palazestrant with Kisqali is enrolling well, but Olema may add patients if upcoming SERENA-4 results suggest the control arm is performing better than historical benchmarks; the company has not provided a readout timeline.
• Olema is advancing its KAT6 inhibitor program with combination studies in breast cancer and a planned prostate cancer combination with NUBEQA. Management reported monotherapy activity and said early fulvestrant-combination data will be presented at San Antonio, while noting dose selection and tolerability still need to be established.
• Olema reported about $414 million in cash and said its runway extends into 2028, supporting its ongoing Phase III trials and current OP-3136 work. If OPERA-01 succeeds, the company intends to seek U.S. approval and launch on its own, while pursuing a partner for markets outside the U.S.

Olema Pharmaceuticals Stock Performance

Shares of NASDAQ OLMA traded down $0.03 during midday trading on Tuesday, reaching $7.33. 227,692 shares of the company were exchanged, compared to its average volume of 1,368,654. The stock has a market cap of $641.38 million, a P/E ratio of -3.46 and a beta of 2.12. Olema Pharmaceuticals has a 1 year low of $6.24 and a 1 year high of $36.26. The stock has a fifty day simple moving average of $8.43 and a 200 day simple moving average of $13.55. The company has a current ratio of 8.86, a quick ratio of 8.86 and a debt-to-equity ratio of 0.01.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Stifel Nicolaus decreased their price objective on shares of Olema Pharmaceuticals from $48.00 to $30.00 and set a "buy" rating for the company in a research report on Monday, September 14th. HC Wainwright cut their price target on Olema Pharmaceuticals from $38.00 to $36.00 and set a "buy" rating on the stock in a research note on Tuesday, August 11th. JPMorgan Chase & Co. decreased their price target on Olema Pharmaceuticals from $52.00 to $46.00 and set an "overweight" rating for the company in a report on Thursday, August 13th. Wall Street Zen cut Olema Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 25th. Finally, Weiss Ratings upgraded shares of Olema Pharmaceuticals from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, September 21st. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $40.60.

Olema Pharmaceuticals Company Profile

Olema Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for women's cancers, with an emphasis on hormone receptor-positive breast cancer. The company's research is centered on treatments designed to address cancer biology and resistance mechanisms that can limit the effectiveness of existing endocrine therapies.

Olema's lead product candidate is palazestrant, an oral selective estrogen receptor degrader (SERD) being developed for patients with estrogen receptor-positive, human epidermal growth factor receptor 2-negative advanced or metastatic breast cancer.

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