Promising Clinical Trial Results Bolster Buy Rating for Olema Pharmaceuticals

Analyst Emily Bodnar from H.C. Wainwright maintained a Buy rating on Olema Pharmaceuticals (OLMA – Research Report) and increased the price target to $30.00 from $28.00.

Emily Bodnar’s rating is based on the promising efficacy demonstrated by Olema Pharmaceuticals’ drug combination in a recent clinical study. The updated data from the palazestrant and ribociclib Phase 1b/2 clinical trial shows a high Clinical Benefit Rate (CBR) across various subsets of patients with ER+/HER2- metastatic breast cancer. This is particularly significant given that the majority of these patients had previously progressed on CDK4/6 inhibitors, suggesting the drug combination could offer a new line of treatment for this patient group. The consistent CBR and Objective Response Rate (ORR) across different patient subsets indicate a synergistic effect between palazestrant and ribociclib.

Furthermore, the combination’s tolerability profile appears favorable, as no patients discontinued palazestrant due to adverse effects, which is an important consideration in cancer therapy. The potential for regulatory discussions regarding Phase 3 design in the second half of 2024 indicates a clear path forward for the drug’s development. Additionally, the shifting landscape in first-line (1L) treatment and the data suggesting ribociclib’s effectiveness as a CDK4/6 inhibitor position palazestrant well for future studies and use in earlier treatment settings. Taken together, these factors contribute to Bodnar’s Buy rating for Olema Pharmaceuticals’ stock, reflecting optimism in the drug’s clinical progress and potential market impact.

Bodnar covers the Healthcare sector, focusing on stocks such as ACELYRIN, INC., Atossa Therapeutics, and NovoCure. According to TipRanks, Bodnar has an average return of 3.6% and a 36.89% success rate on recommended stocks.

In another report released on May 9, Capital One Financial also reiterated a Buy rating on the stock with a $26.00 price target.

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Olema Pharmaceuticals (OLMA) Company Description:

Olema Pharmaceuticals inc is a clinical-stage biopharmaceutical company. It is focused on the discovery, development, and commercialization of next generation targeted therapies for women’s cancers. Its therapies offer the potential to improve outcomes for women living with cancer. The company has completed discovery and preclinical studies of OP-1250.