Olema Pharmaceuticals (NASDAQ:OLMA) shares dropped 41% on Monday after negative results from a late-stage breast cancer study conducted by Roche weighed on sentiment across the sector.
Roche reported that its Phase 3 persevERA trial evaluating giredestrant in combination with palbociclib versus an aromatase inhibitor plus palbociclib failed to meet its primary endpoint. The study did not achieve a statistically significant improvement in progression-free survival. Roche shares fell as much as 7.5% following the announcement, marking their biggest decline in more than 11 months.
Olema is currently developing its own breast cancer treatment candidate, palazestrant, which is being tested in multiple Phase 3 trials. The company’s OPERA-02 study, evaluating palazestrant in first-line metastatic breast cancer, is not expected to deliver topline data until 2028.
Although Roche reported a numerical improvement in outcomes during the trial, the results did not reach statistical significance.
Stifel analysts said the development could weigh on Olema in the near term but noted that the trial still showed signs of potential benefit. They added that the data leave open the possibility that palazestrant’s stronger receptor antagonism and pharmacokinetic profile could offer a meaningful clinical advantage in first-line metastatic breast cancer treatment.
The firm also noted that investors who believe palazestrant could achieve best-in-class status may view the current sell-off as an opportunity, as Roche’s setback could leave room for Olema’s therapy to emerge as an early leader in the first-line metastatic setting.