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Olema Oncology could be a standout player in developing therapies for women’s cancers, particularly in breast cancer, according to Citi Research. Analyst Yigal Nochomovitz initiated the clinical-stage biotech company at a buy/high risk rating, saying it has potential in developing a “next-gen endocrine therapy.” His price target of $20 implies shares could surge more than 72% over the next 12 months. The stock was flat in trading on Tuesday, but has fallen more than 16% so far this year. Last year, Olema shares soared more than 470% as the company released a series of positive updates, particularly about its lead investigational oncology drug palazestrant , Nochomovitz said. Palazestrant is a complete estrogen receptor antagonist, or CERAN, and selective ER degrader, or SERD, that is currently under development for the treatment of metastatic ER+/HER2- breast cancer. The drug, which has been granted FDA “fast track,” is an oral compound, meaning it is taken in the form of a tablet or pill. “We believe palazestrant has emerged as a highly promising CERAN/SERD with opportunities across multiple lines of ER+ breast cancer,” Nochomovitz wrote in a Tuesday note. “While the SERD space remains competitive and Olema is trailing the competition, we view palazestrant’s ESR1 wild-type activity, favorable combinability with CDK4/6i’s, and strategy to combine with ribociclib for pivotal 1L development as possible angles for differentiation to materialize,” the analyst added. CDK4/6 inhibitors are drugs that are used to treat metastatic breast cancer, or advanced stage IV breast cancer, which has spread to other organs in the body far from the breast. Palazestrant has already proven it can be safely combined with the CDK 4/6 inhibitors, ribociclib and palbociclib, in a Phase 1/2 study . The company is looking to partner for its Phase 3 studies and Nochomovitz anticipates that shares could react once such a relationship is announced in the near to mid-term.
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