Olema Oncology Reports Fourth Quarter and Full-Year 2023 Financial Results and Provides Corporate Update
- Strong financial position with $261.8 million in cash equivalents as of December 31, 2023.
- Compelling clinical results for palazestrant in Q4 2023 both as a monotherapy and in combination with CDK4/6 inhibitors.
- Initiation of OPERA-01 pivotal Phase 3 monotherapy trial with top-line results expected in 2026.
- Completion of 60-patient Phase 2 studies in combination with ribociclib and palbociclib.
- Presentation of palazestrant-ribociclib clinical update at ESMO Breast Cancer Annual Congress 2024.
- Progress in the KAT6 program with the nomination of OP-3136 as a development candidate.
- Expansion of clinical collaboration with Novartis Institutes for BioMedical Research, Inc.
- Completion of combined financing for up to $180 million including an equity private placement and a new senior secured credit facility.
- Upcoming milestones include presenting Phase 2 clinical results at ESMO Congress 2024, initiating Phase 1b/2 study of palazestrant in combination with mTOR inhibitor, and filing an IND application for OP-3136.
- Positive net loss improvement for the full year 2023 due to higher interest income earned from marketable securities.
- None.
Insights
The recent clinical advancements for palazestrant, particularly its efficacy as both a monotherapy and in combination with CDK4/6 inhibitors ribociclib and palbociclib, mark a significant step in the treatment of ER+/HER2- breast cancer. The drug's ability to target both wild-type and ESR1-mutant breast cancers could potentially fill a gap in current treatment options, which often face challenges such as resistance to existing therapies.
From an oncological perspective, the initiation of the OPERA-01 pivotal Phase 3 trial is a critical milestone that signifies the transition from early to late-stage clinical development. The top-line results expected in 2026 will be pivotal in determining the drug's efficacy and safety at a larger scale, which if positive, could lead to a new standard of care for patients with advanced breast cancer.
Olema Pharmaceuticals' financial results reveal a strategic emphasis on research and development, with a notable increase in spending to advance clinical trials for palazestrant. This investment is justified by the potential market opportunity in breast cancer therapies, a field that continues to demand innovation due to the prevalence of the disease and the limitations of current treatments.
The company's cash position of $261.8 million as of December 31, 2023, suggests a solid runway to support ongoing clinical trials and the initiation of new studies. However, the reported net loss of $26.8 million for the quarter and $96.7 million for the year, although slightly improved from the previous year, underscores the high costs associated with drug development and the risks involved in the biopharmaceutical industry.
The collaboration with Novartis and the successful financing, including a significant private placement and a credit facility with Silicon Valley Bank, indicate investor confidence and provide financial flexibility. These factors could potentially impact Olema's stock performance and investor sentiment, especially as clinical trial milestones are reached and reported.
The advancement of palazestrant in clinical trials is not only significant for patient outcomes but also for Olema Pharmaceuticals' position in the competitive landscape of women’s cancer treatments. The company's focus on a targeted therapy approach, as evidenced by the development of a KAT6 inhibitor, suggests a strategic alignment with current industry trends towards personalized medicine.
The upcoming presentation of interim Phase 2 clinical results at the ESMO Breast Cancer Annual Congress in 2024 will be a key event for stakeholders, as it will provide valuable insights into the drug's performance and potential market impact. The initiation of a Phase 1b/2 study with an mTOR inhibitor also indicates Olema's commitment to exploring combination therapies, which could enhance the therapeutic efficacy and marketability of palazestrant.
- Presented compelling clinical results for palazestrant both as a monotherapy and in combination with CDK4/6 inhibitors, ribociclib and palbociclib, in Q4 2023
- Initiated OPERA-01 pivotal Phase 3 monotherapy trial in Q4 2023; top-line results expected in 2026
- 60-patient Phase 2 studies in combination with each of ribociclib and palbociclib are fully enrolled; palazestrant-ribociclib clinical update to be presented at ESMO Breast Cancer Annual Congress 2024, May 15-17, 2024, in Berlin
- Cash, cash equivalents and marketable securities of
$261.8 million as of December 31, 2023
SAN FRANCISCO, March 11, 2024 (GLOBE NEWSWIRE) -- Olema Pharmaceuticals, Inc. (“Olema”, “Olema Oncology”, Nasdaq: OLMA), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted therapies for women’s cancers, today reported financial results for the fourth quarter and full year ended December 31, 2023, and provided a corporate update.
“In 2023 we demonstrated the unique opportunity ahead for palazestrant to make a meaningful impact on improving treatment options for women with ER+/HER2- breast cancer. We believe palazestrant’s activity on both wild-type and ESR1-mutant breast cancer, and its ability to safely combine with ribociclib, result in a highly differentiated profile amongst this emerging new class of estrogen receptor-targeting therapies,” said Sean P. Bohen, M.D., Ph.D., President and Chief Executive Officer of Olema Oncology. “We have recently completed enrollment in our 60-patient Phase 2 study of 120 mg palazestrant in combination with 600 mg ribociclib, and we are looking forward to sharing an update on this study at the 2024 ESMO Breast Cancer Annual Congress. Beyond palazestrant, we recently declared a development candidate for our KAT6 program, OP-3136, and we are advancing towards an IND filing by the end of this year. Our mission at Olema is to improve the lives of women living with cancer and we are very pleased with the progress we are making.”
Recent Corporate Highlights
- Presented interim clinical results of palazestrant in combination with CDK4/6 inhibitors ribociclib and palbociclib at the 2023 San Antonio Breast Cancer Symposium (SABCS), showing no significant drug-drug interaction, no dose-limiting toxicities and a tolerability profile consistent with the FDA-approved labels of ribociclib or palbociclib plus an endocrine therapy.
- Presented palazestrant monotherapy Phase 2 clinical results at the European Society for Medical Oncology (ESMO) Congress 2023 in Madrid, Spain, as an oral presentation demonstrating compelling activity in both wild-type and ESR1-mutant tumor types.
- Initiated OPERA-01, our pivotal Phase 3 monotherapy clinical trial in the second- and third-line setting of ER+/HER2- advanced or metastatic breast cancer, including dosing first patients and activating multiple trial sites globally.
- Nominated OP-3136, an orally bioavailable KAT6 inhibitor, as a development candidate. OP-3136 demonstrated potent anti-tumor activity alone and in combination with both palazestrant and CDK4/6 inhibitors in preclinical ER+ breast cancer models.
- Announced the expansion of Olema's clinical collaboration with Novartis Institutes for BioMedical Research, Inc. (Novartis), increasing the size of the ongoing Phase 1/2 clinical study testing palazestrant in combination with ribociclib to approximately 60 patients. This study is fully enrolled.
- Completed a combined financing for up to
$180 million including an equity private placement of approximately$130 million of common stock as well as a new senior secured credit facility with an aggregate principal amount of up to$50 million with Silicon Valley Bank (SVB),$25 million of which is currently available.
Upcoming Milestones
- Present interim Phase 2 clinical results of palazestrant in combination with ribociclib at ESMO Breast Cancer Annual Congress 2024, May 15-17, 2024, in Berlin, Germany.
- Initiate Phase 1b/2 clinical study of palazestrant in combination with mTOR inhibitor, everolimus, in Q3 2024.
- File an Investigational New Drug, or IND, application with the FDA for OP-3136, a KAT6 inhibitor, in late 2024, and advance clinical development.
- Prepare for pivotal Phase 3 first-line trial in combination with CDK4/6 inhibitor, ribociclib.
Fourth Quarter and Full-Year 2023 Financial Results
Cash, cash equivalents and marketable securities as of December 31, 2023, were
Net loss was
GAAP research and development (R&D) expenses were
Non-GAAP R&D expenses were
GAAP G&A expenses were
Non-GAAP G&A expenses were
About Palazestrant (OP-1250)
Palazestrant (OP-1250) is a novel, orally-available small molecule with dual activity as both a complete estrogen receptor (ER) antagonist (CERAN) and selective ER degrader (SERD). It is currently being investigated in patients with recurrent, locally advanced or metastatic ER-positive (ER+), human epidermal growth factor receptor 2-negative (HER2-) breast cancer. In clinical studies, palazestrant completely blocks ER-driven transcriptional activity in both wild-type and mutant forms of metastatic ER+ breast cancer and has demonstrated anti-tumor activity along with attractive pharmacokinetics and exposure, favorable tolerability, CNS penetration, and combinability with CDK4/6 inhibitors. Palazestrant has been granted U.S. Food and Drug Administration (FDA) Fast Track designation for the treatment of ER+/HER2- metastatic breast cancer that has progressed following one or more lines of endocrine therapy with at least one line given in combination with a CDK4/6 inhibitor. It is currently being evaluated both as a single agent in an ongoing Phase 3 clinical trial, OPERA-01, and in Phase 2 combination studies with CDK4/6 inhibitors (palbociclib and ribociclib) and a PI3Ka inhibitor (alpelisib). For more information, please visit www.opera01study.com.
About Olema Oncology
Olema Oncology is a clinical-stage biopharmaceutical company committed to transforming the standard of care and improving outcomes for women living with cancer. Olema is advancing a pipeline of novel therapies by leveraging our deep understanding of endocrine-driven cancers, nuclear receptors, and mechanisms of acquired resistance. In addition to our lead product candidate, palazestrant (OP-1250), a proprietary, orally-available complete estrogen receptor (ER) antagonist (CERAN) and a selective ER degrader (SERD), Olema is developing a potent KAT6 inhibitor. Olema is headquartered in San Francisco and has operations in Cambridge, Massachusetts. For more information, please visit us at www.olema.com.
Non-GAAP Financial Information
The results presented in this press release include both GAAP information and non-GAAP information. As used in this release, non-GAAP R&D expense is defined by Olema as GAAP R&D expense excluding stock-based compensation expense, and non-GAAP G&A expense is defined by Olema as GAAP G&A expense excluding stock-based compensation expense. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
Forward Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as “anticipate,” "believe,” “could,” “expect,” “goal,” “may,” “potential,” “will” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These statements include those related to Olema’s financial condition and resources, results of operations, cash position, the timeline of Olema’s pivotal Phase 3 monotherapy clinical trial (OPERA-01), the timelines for initiation and enrollment for potential clinical studies and for results of clinical trials of palazestrant (OP-1250) as a monotherapy and in combination trials, potential beneficial characteristics, including but not limited to safety, tolerability, efficacy and therapeutic effects of palazestrant, the potential of palazestrant to improve treatment options or outcomes for women living with ER+/HER2- breast cancer, palazestrant’s combinability with other drugs, and the sufficiency and timing of Olema’s preclinical program, including the potential beneficial characteristics of its KAT6 inhibitor compounds, its applicability to breast and other cancers and the timing of a potential IND application. Because such statements deal with future events and are based on Olema’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Olema could differ materially from those described in or implied by the statements in this press release. These forward-looking statements are subject to risks and uncertainties, including, without limitation, those discussed in the section titled “Risk Factors” in Olema’s Annual Report on Form 10-K for the year ended December 31, 2023, and future filings and reports that Olema makes from time to time with the U.S. Securities and Exchange Commission. Except as required by law, Olema assumes no obligation to update these forward-looking statements, including in the event that actual results differ materially from those anticipated in the forward-looking statements.
| Olema Pharmaceuticals, Inc. | ||||||||
| Condensed Consolidated Balance Sheets Data | ||||||||
| (in thousands) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Cash, cash equivalents and marketable securities | $ | 261,807 | $ | 204,421 | ||||
| Total assets | 276,945 | 215,645 | ||||||
| Total current liabilities | 21,621 | 16,549 | ||||||
| Total liabilities | 23,050 | 18,099 | ||||||
| Total stockholders’ equity | 253,895 | 197,546 | ||||||
| Total liabilities and stockholders’ equity | $ | 276,945 | $ | 215,645 | ||||
| Olema Pharmaceuticals, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development (1) | $ | 25,872 | $ | 21,584 | $ | 86,140 | $ | 82,274 | |||||||
| General and administrative (2) | 4,544 | 5,635 | 18,821 | 24,714 | |||||||||||
| Total operating expenses | 30,416 | 27,219 | 104,961 | 106,988 | |||||||||||
| Loss from operations | (30,416 | ) | (27,219 | ) | (104,961 | ) | (106,988 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest income | 3,551 | 973 | 8,325 | 2,228 | |||||||||||
| Other income (expense): | 93 | 67 | (19 | ) | (27 | ) | |||||||||
| Total other income | 3,644 | 1,040 | 8,306 | 2,201 | |||||||||||
| Net loss | $ | (26,772 | ) | $ | (26,179 | ) | $ | (96,655 | ) | $ | (104,787 | ) | |||
| Net loss per share, basic and diluted | $ | (0.49 | ) | $ | (0.65 | ) | $ | (2.14 | ) | $ | (2.62 | ) | |||
| Weighted average shares used to compute net loss per share, basic and diluted | 54,783,945 | 40,188,466 | 45,247,098 | 39,995,460 | |||||||||||
| Reconciliation of GAAP to Non-GAAP Information | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (1) Research and development reconciliation | |||||||||||||||
| GAAP research and development (3) | $ | 25,872 | $ | 21,584 | $ | 86,140 | $ | 82,274 | |||||||
| Less: share-based compensation expense | 2,911 | 3,374 | 11,769 | 12,462 | |||||||||||
| Non-GAAP research and development | $ | 22,961 | $ | 18,210 | $ | 74,371 | $ | 69,812 | |||||||
| (2) General and administrative reconciliation | |||||||||||||||
| GAAP general and administrative | $ | 4,544 | $ | 5,635 | $ | 18,821 | $ | 24,714 | |||||||
| Less: share-based compensation expense | 1,440 | 1,487 | 5,487 | 6,367 | |||||||||||
| Non-GAAP general and administrative | $ | 3,104 | $ | 4,148 | $ | 13,334 | $ | 18,347 | |||||||
| (3) Research and development expenses for the twelve-months ended December 31, 2022 include an | |||||||||||||||
IR and Media Contact:
Geoffrey Mogilner, Vice President, Investor Relations and Communications
ir@olema.com
FAQ
What is the cash, cash equivalents, and marketable securities amount as of December 31, 2023?
What are the key clinical results presented for palazestrant in Q4 2023?
What is the status of the OPERA-01 pivotal Phase 3 monotherapy trial?
What are the upcoming milestones for Olema Pharmaceuticals, Inc.?
What is the net loss for the quarter and year ended December 31, 2023?
What are the GAAP research and development expenses for the quarter and year ended December 31, 2023?
What are the GAAP general and administrative expenses for the quarter and year ended December 31, 2023?
