Olema Pharmaceuticals, Inc. (OLMA) shares are soaring 5.26% in pre-market trading on Wednesday, continuing their upward momentum despite announcing a $190 million public offering of common stock. This surge follows a remarkable 136% jump on Tuesday, which was triggered by positive late-stage trial results from competitor Roche's oral breast cancer drug.

The company announced the pricing of its public offering of 10 million shares at $19.00 each, aiming to raise approximately $190 million. Olema plans to use the proceeds for the continued clinical development of its oral breast cancer drug candidates, palazestrant and OP-3136. The offering comes as the company capitalizes on its surging stock price, which reached a four-year high of $20.14 at Tuesday's close.

The stock's resilience in the face of potential dilution from the new share issuance suggests strong investor confidence in Olema's prospects. This optimism is likely fueled by the positive results from Roche's giredestrant trial, which demonstrated a reduced risk of breast cancer recurrence after surgery. As Olema is developing similar drugs, the market appears to be betting on the potential success of the company's own pipeline. JP Morgan has raised its price target for Olema from $32 to $55, reflecting increased optimism about the company's future.