Promising Potential of Olema Pharmaceuticals’ Palazestrant in Transforming ER+/HER2- Breast Cancer Treatment

H.C. Wainwright analyst Emily Bodnar maintained a Buy rating on Olema Pharmaceuticals today and set a price target of $45.00.

Emily Bodnar’s rating is based on the promising potential of Olema Pharmaceuticals’ palazestrant in the treatment of early-stage ER+/HER2- breast cancer. The recent data from the Phase 3 lidERA trial, which evaluated giredestrant, an oral SERD, demonstrated significant efficacy in reducing invasive disease recurrence or death compared to standard endocrine therapies, with a 30% reduction in risk. This positions oral SERDs as a potential new standard of care, offering a substantial commercial opportunity for Olema Pharmaceuticals.
Furthermore, the safety profile of giredestrant was favorable, with comparable rates of adverse events to existing therapies and fewer treatment-associated discontinuations. This suggests that oral SERDs can provide superior efficacy without compromising patient safety, which is crucial for long-term treatment regimens. Given the high relapse rate and side effect-related discontinuations associated with current therapies, the introduction of palazestrant could address a significant unmet need in the market, supporting the Buy rating.

According to TipRanks, Bodnar is a 4-star analyst with an average return of 13.4% and a 35.96% success rate. Bodnar covers the Healthcare sector, focusing on stocks such as Olema Pharmaceuticals, AnaptysBio, and Arcus Biosciences.

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