TLDR
- Shares of Olema Pharmaceuticals rose 197.3% in premarket trading on Tuesday despite no company announcements
- Swiss drugmaker Roche reported positive Phase III study results for giredestrant, a breast cancer treatment
- Olema is developing palazestrant, a similar drug for the treatment of breast cancer, in collaboration with Novartis
- Roche’s study met its primary endpoint in an interim analysis for patients with early-stage breast cancer
- Premarket volume reached 13.4 million shares compared to a three-month average of 1.28 million shares
Shares of Olema Pharmaceuticals rose Tuesday morning without any direct news from the company. The clinical biopharmaceutical company did not issue press releases or SEC filings to explain the move.
Olema Pharmaceuticals, Inc., OLMA
The catalyst instead came from competitor Roche. The Swiss drugmaker announced positive phase III clinical trial results for its investigational drug giredestrant.
Roche’s study focused on using giredestrant as an adjuvant endocrine treatment. The study included patients with estrogen receptor-positive, HER2-negative, early-stage breast cancer.
The study met its primary endpoint during an interim analysis. However, overall survival data remain unavailable at this time.
Link to Olema’s drug development
The news is important for Olema because of palazestrant, the company’s leading asset. This drug shares similarities with Roche’s giredestrant. Both are focused on breast cancer treatment.
Olema is currently running several clinical trials for palazestrant. The company works under an agreement with Novartis on these studies.
Roche’s positive trial results suggest potential validation for this class of drug. Investors interpreted the news as favorable for Olema’s similar association.
Stock performance and trading activity
Shares of Olema Pharmaceuticals climbed 197.3% in premarket trading on Tuesday. Last trading session increased by 1.43%.
Year-to-date performance shows an increase of 46.14% for the stock. Over the past 12 months, shares have risen 2.29%.
Trading volume increased dramatically on Tuesday morning. Pre-market activity reached 13.4 million shares.
This represents a massive increase from normal levels. The three-month daily average is around 1.28 million shares.
Analyst Outlook
Wall Street maintains a strong buy consensus rating on Olema Pharmaceuticals. Six analysts have issued buy ratings in the last three months.
The average price target is $24.25 per share. This represents a potential upside of 184.62% from current levels.
No analysts have issued a Sell or Hold rating during this period. The unanimous positive stance reflects confidence in the company’s pipeline.
Roche’s study of giredestrant included patients with estrogen receptor-positive, HER2-negative, early-stage breast cancer. Trading volume for Olema totaled 13.4 million shares on Tuesday, compared to a three-month daily average of about 1.28 million units.