OLEMA PHARMACEUTICALS (OLMA) 15/05

A Tier 1 microcap to watch in the next few months

As per usual, we are coming back with the events we are watching in the next 14 days; 

Stock: OLMA

Tier 1/2/3: 1

Market Cap:

Key drug/asset:

OP-1250 - a newer version or novel medication to treat certain hormone-driven breast cancer (estrogen-positive). OP-1250 is being assigned to the patients as a stand-alone medication and also as a combined regimen with existing anti-cancer medications. 

Event(s):

OP-1250 (metastatic breast cancer/mBC treatment) – Phase 2 data readout – H2 2023

OP-1250 + Ribociclib (mBC, BC) – Phase 1b data readout – H2 2023

OP-1250 + Palbociclib (mBC, BC) – Phase 2 update – TBA

Why are we watching? 

OP-1250 is a first-of-its-kind medication to treat hormone-driven breast cancers.

Unlike the competitor drug Fulvestrant, which is a selective estrogen receptor degrader (SERD), OP-1250 is a dual mechanism drug, SERD and a complete estrogen receptor antagonist (CERAN), which could more effectively block the cancer-driving hormone (estrogen receptor) than the single mechanism of a SERD. Compared to existing drugs, OP-1250 exerts stable and significantly positive treatment benefits with acceptable side effects.

We are closely following OLMA since October 2022 and the current share price has doubled, compared to the period of our initial review/recommendation. We observed deep scientific value in OP-1250 and thus foresee exceptional short-term share price increases (6-12 months).

Our opinion: 

We like it, because

 Unlike existing drugs like Tamoxifen and Fulvestrant, which suffer impaired efficacy due to abnormal/structural changes in the drug/hormone binding site (estrogen receptor mutations) and subsequent drug resistance (leading to treatment failure), OP-1250 has the edge of employing combined therapy with Abemaciclib (Verzenio), Palbociclib (Ibrance) and Ribociclib (Kisqali) to achieve significant progression-free survival rate (PFS) and overall survival rate (OS), both as monotherapy and combined therapy.

Exponentially increasing incidence of HER-2 negative breast cancer across the globe and favorable safety and efficacy profile could increase the likelihood of clinical trial success (moving to the next phase) and regulatory success (marketing approval). The Phase 1b and Phase II read out in the coming weeks to months could be optimistically positive that could increase the share price significantly.  

Please note: If you are interested in a detailed analysis of this and its pipeline assets, please email us. Many times we have further clinical research or are happy to dig in more if needed. 

Our disclaimer: We may hold a position in the stock. This article does not constitute investment advice. We are not registered investment advisers. Investing in biotech/microcaps carries specific risks best discussed with an investment advisor. Always do your due diligence.

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