Olema Pharmaceuticals (OLMA) AI Stock Analysis

• Market Cap: $334.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: N/A
• EPS Growth: 0.42%
• Country: US
• Employees: 96
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -2.15
• Shares Outstanding: 68,333,060
• 10 Day Avg. Volume: 840,975
• 30 Day Avg. Volume: 1,089,108
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 472.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Olema Pharmaceuticals faces substantial financial challenges with zero revenue and increasing losses, necessitating external funding. The technical analysis indicates some recent positive momentum, but the stock remains speculative due to negative profitability. The strategic collaboration with Novartis offers a positive outlook, potentially enhancing market position and supporting long-term growth. These factors collectively result in a moderate overall stock score.

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.

Product Differentiation

Palazestrant monotherapy data indicate positive efficacy in ESR1 wild-type patients, which could address a high unmet need in this patient population.

Stock Valuation

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 Pressure

Recent updates indicate that another oral SERD did not meaningfully improve progression-free survival among ESR1 Wild Type patients, following prior negative results in this group from other companies.

Investor Sentiment

The short interest percentage of float for Olema Pharmaceuticals stands at 11.9%, indicating a significant portion of investors are betting against the stock.

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 in a typical biotechnology growth phase, characterized by high R&D expenses, zero revenue, and increasing net losses. The company maintains a strong equity position and minimal debt, which are positives. However, the lack of revenue and negative cash flows pose significant risks, necessitating continued external financing to support operations.

Income Statement

Olema Pharmaceuticals has consistently reported zero revenue over the years, which is typical for biotechnology firms in the development phase. However, the company has experienced increasing net losses, with the most recent year showing a net income loss of $129.47 million, up from $96.66 million the previous year. The lack of revenue and increasing losses indicate financial strain and risk, contributing to a low income statement score.

Balance Sheet

The balance sheet shows a strong equity position with a stockholders' equity of $408.96 million. The company has minimal debt, resulting in a low debt-to-equity ratio. However, the company's total assets are largely composed of cash and equivalents, indicating limited asset diversification. The equity ratio remains healthy, but the absence of revenue-generating assets poses a risk to future financial stability.

Cash Flow

Operating cash flow has been negative and worsening, with a current deficit of $104.35 million. Free cash flow is similarly negative, reflecting high cash burn rates typical for biotech firms in R&D phases. Positive financing cash flow indicates reliance on external funding to sustain operations. The negative cash flow metrics highlight cash management challenges and reliance on capital markets for liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-377.00K	-1.66M	-1.66M	-11.00K
	EBIT
-142.26M	-104.96M	-106.99M	-71.49M	-21.53M
	EBITDA
-142.26M	-104.58M	-103.13M	-69.43M	-21.52M
	Net Income Common Stockholders
-129.47M	-96.66M	-102.59M	-70.89M	-22.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
434.09M	261.81M	204.42M	287.25M	338.55M
	Total Assets
450.98M	276.94M	215.65M	295.94M	342.72M
	Total Debt
1.43M	2.42M	2.56M	3.29M	0.00
	Net Debt
-138.05M	-66.12M	-21.14M	-283.96M	-338.55M
	Total Liabilities
42.02M	23.05M	18.10M	11.38M	4.58M
	Stockholders Equity
408.96M	253.90M	197.55M	284.57M	338.14M
Cash Flow		Free Cash Flow
-104.35M	-83.73M	-82.43M	-52.27M	-19.92M
	Operating Cash Flow
-104.35M	-83.73M	-82.06M	-50.69M	-19.87M
	Investing Cash Flow
-93.53M	-4.85M	91.48M	-275.44M	-56.00K
	Financing Cash Flow
268.82M	133.41M	476.00K	1.39M	358.40M

Olema Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.89
• 50DMA: Positive
• 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 Positive. The current price of 4.89 is above the 20-day moving average (MA) of 4.07, above the 50-day MA of 4.28, and below the 200-day MA of 8.76, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 67.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLMA.

Olema Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLUE	52 Neutral	$304.47M	―	-36.15%	―	―	61.09%
TSHA	52 Neutral	$369.10M	―	-121.94%	―	-46.07%	71.52%
Sector *	51 Neutral	$5.35B	3.41	-40.48%	2.89%	17.92%	2.25%
ATYR	48 Neutral	$290.57M	―	-79.69%	―	-33.43%	8.94%
OLMA	46 Neutral	$334.15M	―	-39.07%	―	―	0.42%
TSVT	45 Neutral	$261.17M	―	-24.56%	―	-62.28%	75.12%
SEPN	44 Neutral	$311.10M	―	3.77%	―	―	―

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.