Olema Pharmaceuticals (OLMA) AI Stock Analysis

• Market Cap: $374.74M
• Dividend Yield: N/A
• Average Volume (3M): 465.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: N/A
• EPS Growth: 6.82%
• Country: US
• Employees: 96
• Sector: Healthcare
• Sector Strength: 54
• Industry: Biotechnology
• EPS (TTM): -0.51
• Shares Outstanding: 68,634,330
• 10 Day Avg. Volume: 320,425
• 30 Day Avg. Volume: 465,797
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.19
• Enterprise Value/Revenue: -193.29
• Enterprise Value/Gross Profit: 1.72K
• Enterprise Value/Ebitda: 0.45
• 1Y Price Target: $25.40
• Price Target Upside: 365.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: ―

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

Efficacy and Treatment Potential

The palazestrant + ribociclib combination demonstrates a potentially differentiated efficacy profile from peers across patient subtypes, which is promising for its potential use as a first-line treatment.

Market Potential

Olema currently estimates the 1L market in combination with a CDK4/6i at over ~$10B, representing one of the most coveted commercial settings in oncology.

Partnership and Cost Savings

Novartis agreed to pay for all the necessary ribo, which represents ~$275MM of cost savings to Olema.

Negative Factors

Compliance Challenges

The weekly intravenous administration could present significant compliance challenges.

Market Sentiment

Short Interest (% Float) 14.7%

Olema Pharmaceuticals Business Overview & Revenue Model

Company Description

Olema Pharmaceuticals, Inc. (OLMA) is a clinical-stage biopharmaceutical company focused on developing targeted therapies for women's cancers. The company's primary focus is on the discovery and development of therapies for hormone receptor-positive breast cancer. Olema's lead product candidate, OP-1250, is designed to be a potential best-in-class complete estrogen receptor antagonist (CERAN) that inhibits estrogen receptor-positive (ER+) cancer growth.

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 experiencing significant financial strain with zero revenue and increasing net losses. The company maintains a strong equity position with minimal debt, but the lack of revenue and negative cash flows pose significant risks, necessitating continued reliance on external financing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.00K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-41.00K	-393.00K	-377.00K	-1.66M	-1.66M	-11.00K
EBITDA	-156.79M	-129.08M	-104.58M	-106.63M	-69.43M	-21.52M
Net Income	-142.29M	-129.47M	-96.66M	-104.79M	-70.89M	-22.76M
Balance Sheet
Total Assets	382.00M	450.98M	276.94M	215.65M	295.94M	342.72M
Cash, Cash Equivalents and Short-Term Investments	361.91M	434.09M	261.81M	204.42M	287.25M	338.55M
Total Debt	1.75M	1.43M	2.42M	2.56M	3.29M	0.00
Total Liabilities	36.77M	42.02M	23.05M	18.10M	11.38M	4.58M
Stockholders Equity	345.24M	408.96M	253.90M	197.55M	284.57M	338.14M
Cash Flow
Free Cash Flow	-127.00M	-104.51M	-83.73M	-82.43M	-52.27M	-19.92M
Operating Cash Flow	-127.16M	-104.35M	-83.73M	-82.06M	-50.69M	-19.87M
Investing Cash Flow	-79.35M	-93.53M	-4.85M	91.48M	-275.44M	-56.00K
Financing Cash Flow	242.10M	268.82M	133.41M	476.00K	1.39M	358.40M

Olema Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.46 is above the 20-day moving average (MA) of 5.35, above the 50-day MA of 4.93, and above the 200-day MA of 5.44, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 37.87 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
TSHA	57 Neutral	$796.56M	―	-51.86%	―	-37.09%	58.96%
SEPN	54 Neutral	$539.48M	―	-32.78%	―	-13.37%	-1025.90%
GLUE	52 Neutral	$296.44M	13.99	9.81%	―	2990.57%	―
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%
OLMA	46 Neutral	$374.74M	―	-49.72%	―	―	6.82%
ATYR	43 Neutral	$527.17M	―	-85.18%	―	-100.00%	11.89%
TSVT	41 Neutral		―		―	-32.07%	98.22%

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.