On Monday, Piper Sandler maintained a positive outlook on Day One Biopharmaceuticals (NASDAQ:DAWN) shares, reiterating an Overweight rating and a $40.00 price target.
The firm's assessment follows the presentation of detailed clinical data on tovorafenib at the American Society of Clinical Oncology (ASCO).
The data highlighted the drug's impact on growth velocity in patients, noting that while a decrease in growth velocity was observed in 42% of patients, the adverse effect appears reversible upon treatment cessation.
The study presented at ASCO showed that all 15 patients who had treatment interruptions or discontinuations experienced a recovery in growth velocity.
Furthermore, nearly all of the patients, specifically 13 out of 15, demonstrated evidence of catch-up growth once the treatment was stopped. This finding is significant as it addresses concerns regarding the long-term impact of tovorafenib on patient growth rates.
Piper Sandler's commentary emphasized the importance of these findings, suggesting that the reversibility of the adverse effect could influence treatment decisions.
Despite the observed decreases in growth velocity, the data suggests that any potential long-term impacts are manageable and that patients can recover once the treatment is halted.
The firm also referenced recent discussions with key opinion leaders (KOLs) which indicated that the drug's impact on growth velocity is a factor that physicians, patients, and caregivers are likely to consider. However, the new data from ASCO is expected to contribute substantially to understanding the implications of tovorafenib's use.
In summary, Piper Sandler's position on Day One Biopharmaceuticals remains unchanged, with the firm continuing to support the stock with a high rating and a steady price target. The latest clinical data on tovorafenib's reversibility of impact on growth velocity is seen as a positive development in assessing the drug's longer-term effects on patients.
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