Olema Pharmaceuticals (OLMA) AI Stock Analysis

• Market Cap: $282.90M
• Dividend Yield: N/A
• Average Volume (3M): 897.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: N/A
• EPS Growth: 0.42%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -2.15
• Shares Outstanding: 68,333,060
• 10 Day Avg. Volume: 1,112,032
• 30 Day Avg. Volume: 897,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 576.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Olema Pharmaceuticals faces significant financial challenges with zero revenue and high cash burn, typical for biotech firms in development. The stock's technical indicators signal bearish momentum. However, the company's strong equity position and recent strategic advancements, including collaborations, provide potential upside if pipeline developments are successful.

Positive Factors

Clinical Trial Results

The palazestrant and ribociclib combination study shows a median progression-free survival of over 13 months, which is potentially best-in-class compared to other similar studies.

Market Potential

The stock price of Olema Pharmaceuticals is currently not reflecting the potential benefits in ESR1 wild-type patients or the first-line treatment opportunity, suggesting significant upside if these benefits are realized.

Negative Factors

Competitive Concerns

The decline in Olema's share price was not a response to OLMA's Phase II update, but instead the disappointing data from Eli Lilly's Phase III EMBER-3 trial.

Uncertainty in Regulatory Approval

It's unclear whether OLMA would need to show statistical significance versus a trend in WT to receive a broad label.

Olema Pharmaceuticals Business Overview & Revenue Model

Company Description

Olema Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer. The company was formerly known as CombiThera, Inc. and changed its name to Olema Pharmaceuticals, Inc. in March 2009. Olema Pharmaceuticals, Inc. was incorporated in 2006 and is headquartered in San Francisco, California.

How the Company Makes Money

Olema Pharmaceuticals makes money primarily through the development and commercialization of its drug candidates. As a clinical-stage company, its revenue model is heavily reliant on advancing its lead product candidate, OP-1250, through clinical trials and, ultimately, gaining regulatory approval for commercialization. The company may also enter into partnerships or licensing agreements with larger pharmaceutical companies, which could provide upfront payments, milestone payments, and royalties based on the sales of successfully developed drugs. Additionally, Olema may generate revenue through collaborations with research institutions or by securing grants to support its research and development activities.

Olema Pharmaceuticals Financial Statement Overview

Summary

Olema Pharmaceuticals is beginning to generate revenue, yet profitability remains a challenge due to negative net income and operating cash flows. The balance sheet shows a strong equity position, but increasing debt levels and consistent losses present stability concerns.

Income Statement

Olema Pharmaceuticals has shown some revenue for the first time in TTM (Trailing-Twelve-Months) but with a negative net income resulting in a poor net profit margin. Revenue growth is evident since prior periods reported zero revenue, but profitability remains a significant challenge due to high negative EBIT and EBITDA margins.

Balance Sheet

The company has maintained a strong equity position relative to its liabilities, as indicated by a high equity ratio. However, the increasing debt levels and negative return on equity due to consistent losses present financial stability concerns.

Cash Flow

Operating cash flow remains negative and has worsened in the current period, reflecting challenges in generating cash from operations. Free cash flow is negative, and the company's reliance on financing cash flow indicates potential liquidity risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.88M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
1.61M	-377.00K	-1.66M	-1.66M	-11.00K	-9.03K
	EBIT
-135.91M	-104.96M	-106.99M	-71.49M	-21.53M	-4.32M
	EBITDA
-135.54M	-104.58M	-103.13M	-69.43M	-21.52M	-4.31M
	Net Income Common Stockholders
-122.68M	-96.66M	-102.59M	-70.89M	-22.76M	-4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.00K	261.81M	204.42M	287.25M	338.55M	68.00K
	Total Assets
132.00K	276.94M	215.65M	295.94M	342.72M	132.00K
	Total Debt
0.00	2.42M	2.56M	3.29M	0.00	0.00
	Net Debt
-68.00K	-66.12M	-21.14M	-283.96M	-338.55M	-68.00K
	Total Liabilities
10.73M	23.05M	18.10M	11.38M	4.58M	10.73M
	Stockholders Equity
-10.59M	253.90M	197.55M	284.57M	338.14M	-10.59M
Cash Flow		Free Cash Flow
-96.54M	-83.73M	-82.43M	-52.27M	-19.92M	-3.08M
	Operating Cash Flow
-96.54M	-83.73M	-82.06M	-50.69M	-19.87M	-3.08M
	Investing Cash Flow
-10.02M	-4.85M	91.48M	-275.44M	-56.00K	0.00
	Financing Cash Flow
25.04M	133.41M	476.00K	1.39M	358.40M	0.00

Olema Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLMA, the sentiment is Negative. The current price of 4.14 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 5.02, and below the 200-day MA of 9.60, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLMA.

Olema Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.88B	0.82	-52.97%	2.48%	20.92%	1.17%
KURA	45 Neutral	$574.98M	―	-42.91%	―	―	2.90%
SRRK	45 Neutral	$3.04B	―	-82.95%	―	―	-22.34%
OLMA	42 Neutral	$282.90M	―	-39.07%	―	―	0.42%
FATE	42 Neutral	$103.45M	―	-54.21%	―	-78.55%	-0.92%
ALXO	38 Underperform	$38.29M	―	-88.91%	―	―	30.37%
IGMS	29 Underperform	$73.52M	―	-155.76%	―	25.77%	32.56%

Olema Pharmaceuticals Corporate Events

Olema Pharmaceuticals Unveils Strategic Priorities and Pipeline

On March 5, 2025, Olema Pharmaceuticals announced the availability of a presentation for investors, highlighting their strategic priorities and clinical pipeline advancements. The company is actively accruing patients for pivotal Phase 3 trials of palazestrant, aiming for a potential commercial launch in 2027, and has announced a new collaboration with Novartis. These developments could significantly impact Olema’s market positioning and offer promising treatment options for breast cancer.

Olema Pharmaceuticals Advances in Cancer Therapy Development

Olema Pharmaceuticals has released a presentation detailing its strategic priorities and clinical pipeline, highlighting the development of palazestrant and OP-3136. The company is actively enrolling patients in clinical trials and plans to initiate pivotal Phase 3 trials, with potential commercial launches expected by 2027. This progression underscores Olema’s ambition to lead in endocrine-driven cancer therapies, potentially impacting treatment options and market positioning.