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    Olema Pharmaceuticals (OLMA): Reassessing Valuation After Roche’s Phase 3 SERD Success Boosts Palazestrant Expectations

    Simply Wall St·12/11/2025 20:19:40
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    Roche’s upbeat Phase 3 data for its breast cancer SERD giredestrant has lit a fire under Olema Pharmaceuticals (OLMA), with investors recalibrating expectations around the company’s own SERD candidate, palazestrant.

    See our latest analysis for Olema Pharmaceuticals.

    The latest pop, including a 15.43% 1 day share price return and a 252.64% 30 day share price return, builds on a powerful backdrop of a 450.81% year to date share price return and a 1152.24% three year total shareholder return. This signals that momentum around Olema’s SERD story is clearly accelerating.

    If this kind of re rating catches your eye, it could be a good moment to scan other innovative names in women’s health and oncology via healthcare stocks.

    Yet after such explosive gains and with shares still trading at a discount to Wall Street targets, investors face a key question: is Olema’s rerating just getting started, or is the market already discounting palazestrant’s future upside?

    Price to Book of 7.8 times, Is it justified?

    On a price to book basis, Olema’s 30.68 dollar share price screens as expensive versus both biotech peers and the wider US biopharma space.

    The price to book ratio compares a company’s market value to its net assets, a common yardstick for early stage, loss making biotechs where earnings based metrics are less useful. For Olema, a 7.8 times multiple signals investors are paying a steep premium to the current balance sheet for future pipeline success.

    That premium stands out even more starkly when set against benchmarks, with Olema trading well above the US biotechs industry average of 2.7 times and a peer group average of 5.9 times. Such a gap implies the market is already baking in a meaningful probability of palazestrant and the broader pipeline translating into commercial revenue, leaving less room for error if clinical or regulatory timelines slip.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-book of 7.8 times (OVERVALUED)

    However, Olema still faces key risks, including binary Phase 3 palazestrant results and potential dilution if further capital is needed before commercialization.

    Find out about the key risks to this Olema Pharmaceuticals narrative.

    Build Your Own Olema Pharmaceuticals Narrative

    If you see the numbers differently or want to stress test your own thesis, you can build a personalized Olema narrative in under three minutes, starting with Do it your way.

    A great starting point for your Olema Pharmaceuticals research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.