Top SMid Biotechnology Stocks: JPMorgan’s Latest Pick
JPMorgan has identified Olema Oncology as a promising investment opportunity in the small and mid-cap biotechnology sector, despite recent market fluctuations. The firm sees Olema as an undervalued stock, particularly in the refractory setting for first-line advanced breast cancer. Olema's shares were down around 25% following AstraZeneca's announcement that its SERENA-4 study did not meet statistical significance for camizestrant plus palbociclib versus aromatase inhibitor plus palbociclib.
However, JPMorgan believes the market's reaction was an overreaction and sees the company's shares as offering significant upside potential if its OPERA-01 study, evaluating monotherapy palazestrant in second and third-line ER-positive, HER2-negative metastatic breast cancer, proves successful. Dire results from SERENA-4 are expected to be presented at a future medical conference, with JPMorgan focusing on the control-arm performance as an indicator for Olema's OPERA-02 study.
Should the OPERA-01 study be positive in both ESR1-mutant and wild-type patients, JPMorgan forecasts Olema shares could reach mid-$20s or higher.
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