Full Press Release Details
Olema Oncology Reports Second Quarter 2023 Financial Results and Provides Corporate Update
SAN FRANCISCO, August 8, 2023 - 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 second quarter ended June 30, 2023, and provided a corporate update.
"Olema is on track to deliver on significant milestones this year, including initiating our first pivotal Phase 3 trial, OPERA-01, which will test palazestrant (OP-1250) as a monotherapy in the second- and third-line metastatic setting, as well as presenting new data from our ongoing monotherapy and combination clinical studies," said Sean P. Bohen, M.D., Ph.D., President and Chief Executive Officer of Olema Oncology. "We are actively engaged in start-up activities for our OPERA-01 Phase 3 clinical trial, with enrollment expected to begin in the fourth quarter. Among other upcoming milestones, we look forward to presenting our mature Phase 2 monotherapy data as part of an oral presentation at the ESMO Congress in Madrid in October. Our goal with palazestrant remains to significantly improve upon current standard-of-care endocrine therapy as the backbone treatment for metastatic breast cancer."
Recent Corporate Highlights
Second Quarter 2023 Financial Results
Cash, cash equivalents and marketable securities as of June 30, 2023, were $167.4 million, a reduction of approximately $18.6 million from the quarter ended March 31, 2023. Olema anticipates that this balance will be sufficient to fund operations into the second quarter of 2025.
Net loss for the quarter ended June 30, 2023, was $20.1 million, as compared to $32.9 million for the same period of the prior year. The decrease in net loss was primarily related to decreased spending on discovery research activities including a one-time upfront payment of $8.0 million to Aurigene Pharmaceuticals in June 2022 pursuant to the exclusive global license agreement entered into in June 2022 between the Company and Aurigene Pharmaceuticals (the Aurigene Agreement), and general and administrative activities including a reduction in corporate- and legal-related costs, which were primarily offset by increased spending on clinical development and operations-related activities as we continue to advance palazestrant into late-stage clinical development.
GAAP research and development (R&D) expenses were $18.0 million for the quarter ended June 30, 2023, as compared to $27.1 million for the quarter ended June 30, 2022. The decrease was primarily due to decreased spending on (i) preclinical research programs, which included the $8.0 million upfront payment in connection with the Aurigene Agreement incurred and paid in June 2022, (ii) clinical pharmacology-related costs, and (iii) personnel-related expenses, which primarily related to lower headcount as a result of the restructuring and portfolio prioritization during the first quarter of 2023, and a decrease of approximately $0.2 million in non-cash stock-based compensation expense. Total decreases were primarily offset by increased spending on clinical operations-related activities as we continue to advance palazestrant into late-stage clinical trials.
Non-GAAP R&D expenses were $15.0 million for the quarter ended June 30, 2023, excluding $3.0 million non-cash stock-based compensation expense. Non-GAAP R&D expenses were $23.8 million for the quarter ended June 30, 2022, excluding $3.2 million non-cash stock-based compensation expense. A reconciliation of GAAP to non-GAAP financial measures used in this press release can be found in the tables below.
GAAP general and administrative (G&A) expenses were $3.6 million for the quarter ended June 30, 2023, as compared to $6.2 million for the quarter ended June 30, 2022. The decrease in G&A expenses was primarily due to decreased spending on (i) corporate- and legal-related costs, and (ii) personnel-related expenses, primarily due to lower headcount as a result of the restructuring and portfolio prioritization, and a decrease of approximately $0.3 million in non-cash stock-based compensation expense.
Non-GAAP G&A expenses were $2.4 million for the quarter ended June 30, 2023, excluding $1.2 million non-cash stock-based compensation expense. Non-GAAP G&A expenses were $4.7 million for the quarter ended June 30, 2022, excluding $1.5 million non-cash stock-based compensation expense. A reconciliation of GAAP to non-GAAP financial measures used in this press release can be found in the tables below.
About Olema Oncology
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 non-cash 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," "expect," "will," "may," "goal," "potential" 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 sufficiency of the initiation and timeline of Olema's pivotal Phase 3 monotherapy clinical trial (OPERA-01), the timelines for potential clinical study results and clinical trials of palazestrant (OP-1250) as a monotherapy and in combination trials, potential beneficial characteristics, safety, tolerability, efficacy and therapeutic effects of palazestrant, the potential of palazestrant to significantly improve endocrine therapy for women living with ER+/HER2- metastatic breast cancer, and palazestrant's combinability with other drugs. 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 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
| June 30, | December 31, | |||||
| 2023 | 2022 | |||||
| Cash, cash equivalents and marketable securities | $ | 167,444 | $ | 204,421 | ||
| Total assets | 177,624 | 215,645 | ||||
| Total current liabilities | 14,831 | 16,549 | ||||
| Total liabilities | 16,041 | 18,099 | ||||
| Total stockholders' equity | 161,583 | 197,546 | ||||
| Total liabilities and stockholders' equity | $ | 177,624 | $ | 215,645 |
Olema Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development (1) | $ | 17,989 | $ | 27,054 | $ | 40,815 | $ | 43,063 | ||||
| General and administrative (2) | 3,612 | 6,239 | 10,388 | 13,484 | ||||||||
| Total operating expenses | 21,601 | 33,293 | 51,203 | 56,547 | ||||||||
| Loss from operations | (21,601) | (33,293) | (51,203) | (56,547) | ||||||||
| Other income: | ||||||||||||
| Interest income | 1,550 | 415 | 2,855 | 633 | ||||||||
| Other (expense) income | (44) | 20 | (33) | 26 | ||||||||
| Total other income | 1,506 | 435 | 2,822 | 659 | ||||||||
| Net loss | $ | (20,095) | $ | (32,858) | $ | (48,381) | $ | (55,888) | ||||
| Net loss per share, basic and diluted | $ | (0.49) | $ | (0.82) | $ | (1.20) | $ | (1.40) | ||||
| Weighted average shares used to compute net loss per share, basic and diluted | 40,720,294 | 39,918,219 | 40,470,041 | 39,876,650 |
Reconciliation of GAAP to Non-GAAP Information
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (1) Research and development reconciliation | ||||||||||||
| GAAP research and development | $ | 17,989 | $ | 27,054 | $ | 40,815 | $ | 43,063 | ||||
| Less: share-based compensation expense | 2,969 | 3,211 | 6,057 | 6,278 | ||||||||
| Non-GAAP research and development | $ | 15,020 | $ | 23,843 | $ | 34,758 | $ | 36,785 | ||||
| (2) General and administrative reconciliation | ||||||||||||
| GAAP general and administrative | $ | 3,612 | $ | 6,239 | $ | 10,388 | $ | 13,484 | ||||
| Less: share-based compensation expense | 1,201 | 1,517 | 2,743 | 3,415 | ||||||||
| Non-GAAP general and administrative | $ | 2,411 | $ | 4,722 | $ | 7,645 | $ | 10,069 |
Shane Kovacs, Chief Operating and Financial Officer
Ignacio Guerrero-Ros, Ph.D., Russo Partners