Olema Pharmaceuticals, Inc. (NASDAQ: OLMA) saw its stock price plummet 6.80% in pre-market trading on Wednesday, following a series of announcements that raised concerns about potential share dilution and changes in the company's capital-raising strategy.

The biotech firm, which focuses on developing therapies for women's cancers, made two significant announcements late Tuesday that appear to have sparked the sell-off. First, Olema revealed plans for a public offering of common stock and pre-funded warrants, a move that typically leads to dilution of existing shareholders' stakes. Additionally, the company announced the termination of its At-The-Market (ATM) Prospectus for common stock dated January 6, 2025, signaling a shift in its approach to raising capital.

This pre-market decline comes as a stark contrast to Olema's performance on Tuesday, when its shares soared over 140% following positive Phase 3 results from Roche's breast cancer drug trial. The volatility was further intensified by notorious "Pharma Bro" Martin Shkreli's public declaration of a short position in Olema stock, citing skepticism about the company's valuation in light of competition in the Selective Estrogen Receptor Degrader (SERD) market. As the biotech sector continues to show signs of recovery, Olema's stock movement highlights the often unpredictable nature of pharmaceutical investments, especially in reaction to financing decisions and market dynamics.