Aadi Bioscience just downgraded at H.C. Wainwright, here’s why

H.C. Wainwright downgraded Aadi Bioscience to Neutral from Buy without a price target after the company announced the initial interim results from the PRECISION 1 trial that is investigating Fyarro in patients harboring TSC1 and TSC2 inactivating alterations. The extremely advanced nature of these patient populations could be having a detrimental impact on the response rate, the analyst tells investors in a research note. After considering the initial interim data in both TSC1- and TSC2-altered solid tumors, the historical tumor agnostic approval benchmarks, and the likelihood that Fyarro would be reserved for later-line patients should the drug eventually be approved in a tumor-agnostic fashion, the firm downgraded the shares.