Olema Pharmaceuticals (OLMA) shares fell 14% in Monday trading even after encouraging results for its breast cancer drug, a decline attributed to investor reaction to Roche Holding's Phase 3 evERA trial results data, which tempered enthusiasm for estrogen receptor-targeting therapies.

Olema "delivered stellar second-line data" in its early-to-mid-stage trial evaluating palazestrant in combination with ribociclib for patients with advanced estrogen receptor-positive, HER2-negative breast cancer, Oppenheimer said Sunday in a report.

In contrast, Roche's evERA results "missed the buy-side's mark," and "failed to show a real benefit in ESR1 wild-type patients," a development that adds risk to Roche's front-line trial and casts uncertainty over Olema's outlook, the report said.

In a statement Monday, Olema said that patients receiving a 120 mg dose of palazestrant achieved a median progression-free survival of 15.5 months. The company said the data support its ongoing Phase 3 trial of palazestrant in combination with ribociclib.

Roche's study may continue to influence Olema's share performance until the full evERA clinical trial results are published in H1 2026, Oppenheimer said.

Oppenheimer reiterated its outperform rating on Olema with a $22 price target.

"Lost in everything is the fact that Olema's palazestrant is a wonderful drug," Oppenheimer said. "It just needs to find its place"

Price: 8.05, Change: -1.32, Percent Change: -14.05