Analyst Emily Bodnar from H.C. Wainwright maintained a Buy rating on Olema Pharmaceuticals (OLMA – Research Report) and keeping the price target at $28.00.
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Emily Bodnar’s rating is based on Olema Pharmaceuticals’ strategic alignment with the FDA regarding the 90 mg QD dose for palazestrant in their Phase 3 trials. This decision is seen as a positive step, as it aligns with the FDA’s Project Optimus, which aims to optimize dosing in oncology drugs. The selection of the 90 mg dose, which is expected to maintain efficacy while reducing gastrointestinal toxicities, positions Olema favorably in their ongoing and planned trials.
Additionally, the Buy rating and $28 price target are supported by a discounted cash flow analysis, which extends estimates to 2040 with a 12% discount rate. The analysis focuses on palazestrant’s potential in treating HR+/HER2- metastatic breast cancer, while acknowledging risks such as safety signals, efficacy concerns, and commercial competition. Despite these risks, the strategic dose selection and financial projections contribute to a positive outlook for Olema Pharmaceuticals.
According to TipRanks, Bodnar is an analyst with an average return of -6.3% and a 28.70% success rate. Bodnar covers the Healthcare sector, focusing on stocks such as Olema Pharmaceuticals, Agenus, and Femasys.
In another report released on May 14, Oppenheimer also reiterated a Buy rating on the stock with a $22.00 price target.