Oppenheimer says Olema collaboration with Pfizer could lead to bidding war

Oppenheimer analyst Matthew Biegler says the firm had a chance to speak with Olema Oncology (OLMA) management after yesterday’s announcement that Pfizer (PFE) will test its next-generation CDK4-selective drug atirmociclib in a Phase 1b/2 combination trial with Olema’s palazestrant. Olema’s shares have gained 15% since the news, so investors clearly aren’t viewing this as typical run-of-the-mill research collaboration. To Oppenheimer, it is more strategic. Alongside the palazestrant + ribociclib combination with Novartis (NVS), Olema now has two of the big three players in HR-positive breast cancer with a seat at the data table-which under ideal circumstances may set the scene for a future bidding war. The firm thinks that’s a real possibility if Roche’s (RHHBY) PersevERA trial-expected any day-reads out positively. Oppenheimer reiterates an Outperform rating on Olema’s shares with a price target of $22.