BofA analyst Alec Stranahan attributes yesterday’s selloff in shares of Day One Biopharmaceuticals to company commentary hinting at a potentially slower than expected early launch kinetic and relatively high price for Ojemda. Due to nature of pediatric low-grade Glioma, patients in remission or well-controlled with current treatments are not likely to switch, the analyst tells investors in a research note. Management said 65% of 90% of identified prescribers are open to using Ojemda initially, and the $400,000 annual price is a significant premium to competitors, the firm points out. It believes these issues are weighing on investor sentiment. BofA keeps an Underperform rating on Day One with a $10 price target.
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