Positive Outlook for Olema’s OPERA-02 Trial Based on Roche’s Promising Giredestrant Data

Analyst Sam Slutsky from LifeSci Capital maintained a Buy rating on Olema Pharmaceuticals and keeping the price target at $39.00.

Sam Slutsky’s rating is based on the promising data presented at the San Antonio Breast Cancer Symposium, which highlighted the potential of Roche’s oral SERD, giredestrant, in reducing the risk of invasive disease recurrence in ER+ breast cancer patients. This positive outcome from Roche’s lidERA trial suggests a favorable readthrough to Olema’s OPERA-02 trial, which is testing a similar therapeutic approach. The data indicated a significant reduction in risk when compared to standard endocrine therapies, providing confidence in the efficacy of this treatment strategy.
Furthermore, the comparison of giredestrant with standard therapies showed a competitive hazard ratio, aligning with results from other successful trials like NATALEE and monarchE. This strengthens the case for Olema’s potential success in the adjuvant setting. Additionally, Olema’s financial position, with a cash runway of approximately three years, supports its ongoing research and development efforts, making it a viable investment opportunity.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $43.00 price target.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLMA in relation to earlier this year.