Olema Pharmaceuticals (OLMA) stock rocketed higher on Tuesday despite a lack of news from the clinical-stage biopharmaceutical company. There are no press releases or Securities and Exchange Commission (SEC) filings that explain why the stock is up today. However, that doesn’t mean there’s no reason behind this movement.
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Investors can turn to Swiss drugmaker Roche (CH:ROG) to understand why Olema Pharmaceuticals stock rallied today. Roche reported positive results from its Phase III clinical trial of investigational giredestrant as an adjuvant endocrine treatment for people with oestrogen receptor (ER)-positive, human epidermal growth factor receptor 2 (HER2)-negative, early-stage breast cancer. This study met its primary endpoint during an interim analysis, though overall survival data still isn’t available.
Roche’s breast cancer study news matters to Olema Pharmaceuticals as the company is currently developing palazestrant as its lead asset. This is a drug that’s similar to giredestrant and also designed to treat breast cancer. It currently has several clinical trials underway as part of an agreement with Novartis (NVS).
Olema Pharmaceuticals Stock Movement Today
Olema Pharmaceuticals stock was up 197.3% in pre-market trading on Tuesday, following a 1.43% rally yesterday. The stock has also increased 46.14% year-to-date and 2.29% over the past 12 months.
With today’s news came heavy pre-market trading of Olema Pharmaceuticals. This saw some 13.4 million shares change hands this morning, compared to a three-month daily average of about 1.28 million units.
Is Olema Pharmaceuticals Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Olema Pharmaceuticals is Strong Buy, based on six Buy ratings over the past three months. With that comes an average OLMA stock price target of $24.25, representing a potential 184.62% upside for the shares.
